2356% APR...is this a record?

[sjn2004]

Watching one of the movie channels today I saw an ad for "payday" loans aimed at people strapped for cash that just need some short term money. At the bottom of the screen it said the APR was 2356%, had to make sure there was no decimal point and there wasn't. This is their site, how can they legally lend at these rates?

http://www.quickquid.co.uk/

[The Moose]

This has been covered SO many times recently.

They are short term loans.

If they charge £50 for a £250 loan for a week, that adds up to a high APR, but a low cost of borrowing the cash if you really need it for that period of time.

There is also a high risk in this sector of the market so they need to charge this high of a figure to pay for the defaults, as well as the admin costs etc.

Cheers

The Moose