Worst ever apr rates ..

[Jack.77]

Randomly found myself looking at a ‘’logbook loan’’ (only out of interest) with nearly 400% apr !! why would anyone want that ? surely a law should be imposed soon on max apr rates so these sort of companies don’t take advantage of people in bad situations .it would only make there situation worse

[Doofus]

Wonga charged some chap 16 million percent apr a few years back.

[Jack.77]

Also on a similar subject.capital gains tax doesn’t seem to take account of inflation of money since buying a property .in example £30k in 2009 is now £41,153.02

[Doofus]

In what way is that a similar subject?

[V8mate]

Jack.77 said:

Randomly found myself looking at a ‘’logbook loan’’ (only out of interest) with nearly 400% apr !! why would anyone want that ? surely a law should be imposed soon on max apr rates so these sort of companies don’t take advantage of people in bad situations .it would only make there situation worse

Short term loans create bizarre APRs.

For example, borrow £1,000 and repay £1,100 a week later, and the APR will be over 500%.

[Deep Thought]

Jack.77 said:

Randomly found myself looking at a ‘’logbook loan’’ (only out of interest) with nearly 400% apr !! why would anyone want that ? surely a law should be imposed soon on max apr rates so these sort of companies don’t take advantage of people in bad situations .it would only make there situation worse

They're "designed" for short term loans for smallish amounts so once you factor in fees and their rate, then the APR goes mental.

If you were caught short some month end and got £100 off a mate for a week, you might give him back £110 when you repay him. The APR on that comes out at maybe 500%

[Deep Thought]

V8mate said:

Jack.77 said:

Randomly found myself looking at a ‘’logbook loan’’ (only out of interest) with nearly 400% apr !! why would anyone want that ? surely a law should be imposed soon on max apr rates so these sort of companies don’t take advantage of people in bad situations .it would only make there situation worse

Short term loans create bizarre APRs.

For example, borrow £1,000 and repay £1,100 a week later, and the APR will be over 500%.

Exactly that.

[Simpo Two]

V8mate said:

Short term loans create bizarre APRs.

For example, borrow £1,000 and repay £1,100 a week later, and the APR will be over 500%.

At school a fellow pupil wanted to borrow 10p for his bus fare. I said 'Sure, 12p back on Monday'. 20% over 3 days - what's that as an APR?

And why didn't I scale the operation up... doh!

[HocusPocus]

https://www.fca.org.uk/firms/high-cost-credit-cons...

However do not hold your breath for any enforcement by FCA. Understated representative APR is massive and may become the next PPI scandal in 2022.