Cheap loan

Anonymous

WTF?

Just seen an advert for Quick Quid on the telly and the APR is 2356% :shock:

disgruntledgoat

Presumably the intention is that you repay it within a very short timespan.

GavH

I'm not sure who I feel more sorry for. The sad beggars who feel they have no choice this time of year but to take such a loan or the tw@ts who are clearly devoid of any morals and who think it's acceptable to target such people with these 'services'.

Pross

Saw that the other day - they basically lend you money from one pay day to the next. Very bad thing to get into as it ends up with you doing it again the following month to pay back the previous month and so on. As usual they are preying on the most desperate (those who are at home watching certain satellite channels in the middle of the day )- politicians would be up in arms if a door lending loan shark did the same but I can't see the difference.

Anonymous

I got a real twinge the other day when my 9 year old showed me what he'd like for Christmas from the lego catalogue. It was a £50 Bionicle kit, spoke to mrs Lite and now santa will get it for him on the day. I just felt really guilty think about the poor sods who can't afford to get their kids what I fortunately can. Then you see these loans set up by bestards to send the poor sods further down the rope. It really pulls at you.

disgruntledgoat

Actually, that is exactly what that guy in Glasgow who was busted as Britains biggest ever loan shark was doing... £50 here, £20 there all managed out of a book...

rokkala

Goverments fault that the companies are allowed to set basically whatever APR they want. Lot of other countries have a limit on credit APR at around 22%

rake

id rather do this than c2w.

STEFANOS4784

You're an idiot then


If i was to get a loan of these people it would be understood (in my head) that they were never goping to see a penny back, luckily my wages are low enough that i could get waway with it , provided i didn't mind a ruined credit score(which i do-i'm a slave to the machine )

northernneil

one of my customers (i do computers) is obviously a company doing just this sort of thing and in the office they have a chart with all the council estates in bradford and leeds highlighted, and each desk has a costing sheet next to it for how much it is to borrow £50 for 2 weeks etc etc

really depressing but they pay me so I guess I cant complain where they get the money from - just like working for a bank

Special K

There are no laws against usuary in this country.

Bhima

NapoleonD wrote:

WTF?

Just seen an advert for Quick Quid on the telly and the APR is 2356% :shock:

I'll do you it for 2355%.

nwallace

If a colleague needs to go to the ATM at lunch time before they can buy their lunch I may offer to lend then a fiver until they can repay it when they go along to the bank after eating, often they will just give me a fiver despite me having actually paid £4.90 to buy their lunch.

I have lent them £4.90 and received £0.10 interest for a 1 hour loan, what is the APR?

Ben6899

nwallace wrote:

If a colleague needs to go to the ATM at lunch time before they can buy their lunch I may offer to lend then a fiver until they can repay it when they go along to the bank after eating, often they will just give me a fiver despite me having actually paid £4.90 to buy their lunch.

I have lent them £4.90 and received £0.10 interest for a 1 hour loan, what is the APR?

How long does it take them to repay?

nwallace

1 hour as stated

cjw

nwallace wrote:

If a colleague needs to go to the ATM at lunch time before they can buy their lunch I may offer to lend then a fiver until they can repay it when they go along to the bank after eating, often they will just give me a fiver despite me having actually paid £4.90 to buy their lunch.

I have lent them £4.90 and received £0.10 interest for a 1 hour loan, what is the APR?

Think it works out something like 2% per hour. Therefore (as 8,760 hours in a year) 17,500% per year... but not APR as it is completely paid of in the hour it was borrowed si APR probably 2%. Guessing though

Smokin Joe

The term "Loan" should be outlawed. No-one is lending you money, they are selling it to you, at 20% interest you are paying £1.20 for every pound you buy.

Putting it like that might bring home to people the real cost of "borrowing".

LazyBoycp

nwallace wrote:

If a colleague needs to go to the ATM at lunch time before they can buy their lunch I may offer to lend then a fiver until they can repay it when they go along to the bank after eating, often they will just give me a fiver despite me having actually paid £4.90 to buy their lunch.

I have lent them £4.90 and received £0.10 interest for a 1 hour loan, what is the APR?

The daily interest rate is 62.4% (assuming it's 'compound' interest, not 'simple'). Scaling this up gives an APR something along the lines of (7.24x10^78)%! :shock: Shame there's only one lunchtime a day! Maybe you should get friends in each time zone that you can lend money to each day.

Agree it's disgraceful they can get away with loans with such high APRs. Yes, they should charge higher rates because of the higher risk of the borrower defaulting, but they're just taking the p!ss.

cjw

LazyBoycp wrote:

[
The daily interest rate is 62.4% (assuming it's 'compound' interest, not 'simple'). Scaling this up gives an APR something along the lines of (7.24x10^78)%! :shock: Shame there's only one lunchtime a day! Maybe you should get friends in each time zone that you can lend money to each day. .

Now, that's the thinking that the banks used and got us into the credit crunch. Although they would have assumed there were 7 lunchtimes a day and then re-morgaged the loan at 50% profit as an AAA guaranteed - Northern Rock / Leihman Bros loan.