Borro.com

[arun1uk]

I'm "working" from home today and just saw an advert for this company on TV.

Borro.com give you money against your jewellery, as a loan, at a typical 85% APR!!!! haahaha!

Are people really stupid enough to do business with these companies?! Surely the recent trend of all these "Gold for Money" companies are just promoting thieves to steal and sell, so they dont really care how much they get......and the companies take advantage of it? How long will they last?

[OnTheOverrun]

Stupid enough? No.

Desperate enough? Yes.

[rpguk]

For a short term loan to a high risk customer and having to mess about with Jewellery, 80% is a good rate although I suspect that rate would be massively skewed by them undervaluing whatever you send in.

And I don't think that people are necessarily stupid, often just have no choice. If it comes down to choosing between gas and a necklace then the actual value becomes a little less relevant then current need.

Although the spelling of the companies name does perhaps point to some stupidity!

[arun1uk]

Good point. I'm not doubting some people get desperate, but surely there are better options than these companies? 80-85% APR is outrageous!

I don't understand how they have just popped up overnight as they are just glorified Pawnbrokers.

[blindswelledrat]

arun1uk said:

Good point. I'm not doubting some people get desperate, but surely there are better options than these companies? 80-85% APR is outrageous!

I don't understand how they have just popped up overnight as they are just glorified Pawnbrokers.

And what do you think a pawn broker charges?
If you were to lend £500 to the sort of person who needs to pawn thier jewellery how much would you want in return over a 3 week loan?
WOuld you do it to get £535 back from that kind of person? (80%)
Me neither