Is this just a legal version of Loan Shark ??!!??
Discussion
Saw an advert on Dave yesterday .. You know one of these annoying adverts , think it was for Quickcash or some company with a name like that .. Woman sitting at her laptop wanting an advance to pay her bills 'cos she hasn't got enough money..
At the end I had to double-take and rewind it just to be sure what I saw was correct.. this..
Now if I'm right.. You borrow £100 .. if u took a year to pay back you'd pay £2356!!
Surely in this day and age there should be a law to stop companies taking advantage of people who are probably in financial difficulty getting into even more mess!
At the end I had to double-take and rewind it just to be sure what I saw was correct.. this..
Now if I'm right.. You borrow £100 .. if u took a year to pay back you'd pay £2356!!
Surely in this day and age there should be a law to stop companies taking advantage of people who are probably in financial difficulty getting into even more mess!
This again?
Think about it. Think about the amounts loaned, cost of lending the money, chances of getting it back and length of the loan term - then think about how much you'd charge to a random stranger with poor credit for lending them £50 for a couple of weeks. Then work out the 'apr'.
Think about it. Think about the amounts loaned, cost of lending the money, chances of getting it back and length of the loan term - then think about how much you'd charge to a random stranger with poor credit for lending them £50 for a couple of weeks. Then work out the 'apr'.
Goldmember1 said:
Now if I'm right.. You borrow £100 .. if u took a year to pay back you'd pay £2356!!
How much do you suggest a company does charge to lend £100 for a week? Given they are lending to people with a huge chance of not ever paying back? 5%APR? You want them to make a few pence on the deal?If you needed to borrow a tenner from a mate and paid him back the next day in the pub and offered to get him a beer for his kindness would you buy him 3 drips of the stuff given that a whole pint would equate to an annual interest of a gazzillion percent?
To answer the original question.....No, its not a loan shark and i expect they hate having to put the pointless APR in knowing that there are people out there who will get excited about it without ever bothering to think it through.
Difficult to regulate. If you cap the rate of interest below the market rate for the credit risk posed by the recipients, you effectively ban legitimate lending to those recipients. People who are using these services are doing so because they have screwed up their finances and are desperate for a few quid to pay something they can't defer and have nowhere else to turn. If you remove these loans from the regulated part of the market, the unregulated loan sharks will step in.
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