These adverts for instant loans on TV...
Discussion
Working from home today so naturally have Dave on in the background with TG repeats on. During the adverts there are lots of companies promoting these payday loans. Now I'm admittedly in a privileged position not needing such people to prop me up but the APR on the loans are nearly 2500%!!!
How can any government allow this type of daylight robbery to go on? Surely it's just praying on the weak and the real money is only benefitting on party in the long run. If I remember there was an episode of The Secret Millionaire who I initially thought was a top bloke, until it came out he was behind a similar type of business.
If anyone on here has or is using one of these services my heart does go out to you as it must be a last resort but FFS it boggles the mind how the people behind these companies sleep at night.
How can any government allow this type of daylight robbery to go on? Surely it's just praying on the weak and the real money is only benefitting on party in the long run. If I remember there was an episode of The Secret Millionaire who I initially thought was a top bloke, until it came out he was behind a similar type of business.
If anyone on here has or is using one of these services my heart does go out to you as it must be a last resort but FFS it boggles the mind how the people behind these companies sleep at night.
.....Dave at lunchtime has only adverts for the no-hopers.....short term loans at huge interest rates.....personal injury claim companies and other shoite.
Funny thing is the girl in the add for the personal loan sounds quite posh and is sitting in a very tidy kitchen...as if....but I suppose they can't show some chavvy type loser surrounded by old KFC tubs and McDonalds debris.
I know someone is going to point out that "posh" people sometimes lose the financial plot but at least I would hope they would have the brains not use a quick loan company that charges extortionate interest rates.
Funny thing is the girl in the add for the personal loan sounds quite posh and is sitting in a very tidy kitchen...as if....but I suppose they can't show some chavvy type loser surrounded by old KFC tubs and McDonalds debris.
I know someone is going to point out that "posh" people sometimes lose the financial plot but at least I would hope they would have the brains not use a quick loan company that charges extortionate interest rates.
This again...........Taken from another website....
"If I lend you £20 and you pay me back and also buy me a pint, let's say the pint is £3.50. That's an interest rate of 17.5% isn't it?
Care to gues how much the APR would be on that little transaction if you paid me back 1 month later? It would be 693%.
What if you paid me back and bought me a pint 2 weeks later - that would be 6,600%
What about 1 week later - how does 438,500% sound to you?!
Makes the loan you're complaining about look like a hell of a bargain doesn't it? Go and learn about compond interest and APRs on short term loans.
Edited to add: - you asked about how much 2356% APR is per week for example. It would be just under 6.3%. In other words, instead of buying me a pint for lending you £20 for a week, you give me the princely sum of £1.26! BARGAIN!"
"If I lend you £20 and you pay me back and also buy me a pint, let's say the pint is £3.50. That's an interest rate of 17.5% isn't it?
Care to gues how much the APR would be on that little transaction if you paid me back 1 month later? It would be 693%.
What if you paid me back and bought me a pint 2 weeks later - that would be 6,600%
What about 1 week later - how does 438,500% sound to you?!
Makes the loan you're complaining about look like a hell of a bargain doesn't it? Go and learn about compond interest and APRs on short term loans.
Edited to add: - you asked about how much 2356% APR is per week for example. It would be just under 6.3%. In other words, instead of buying me a pint for lending you £20 for a week, you give me the princely sum of £1.26! BARGAIN!"
Hedders said:
Every time this topic comes up i ask this question and no one has told me the answer yet 
When my bank charges me £30 for going £1 overdrawn for one day, what is the APR?
Not forgetting the 5.00 a day on top of that, well A & L do anyway. I once went 1.57 over my OD limit for 5 days while I was on holiday and it cost me the grand total of 50.00. When my bank charges me £30 for going £1 overdrawn for one day, what is the APR?
My mate uses them all the time he reckons it works out cheaper than going over you OD limit.
hole a few years back..mcflurry said:
If you borrow £20 from a mate over the weekend, then buy him a pint to say thanks the APR will be even higher..
Exactly this.Borrow £100 for a month to pay your dealer so your legs don't get broken. Pay back £140.
Sounds like a good deal to me.
These companies provide a service. They can charge what they want, and rightly so. If you don't like it, don't use them.
playerone said:
One of the national newspapers pointed out that Lloyds charge 11 times more than the payday loan companies if you go into unauthorised overdraft.
Or call them in advance and arrange the overdraft. If you can't use a phone, then pop into the branch. Your £20 pub round paid off after the weekend now costs 3 pence in interest (£20 x 17.9% / 365 x 3)
Daylight robbery is it Ved?
If you take the sort of person that borrows money from these kind of places:
If one were to ask you to borrow £50 for a month, what kind of return would you want for risking your £50 to a pikey?
I wouldn't do it in a million years for a mere 2500%, or to put it a less melodramatic way, £10.
Lend £50 to a tramp in the hope of getting £60 back a month later????
THese companies must be insane. I cannot believe they survive.
If you take the sort of person that borrows money from these kind of places:
If one were to ask you to borrow £50 for a month, what kind of return would you want for risking your £50 to a pikey?
I wouldn't do it in a million years for a mere 2500%, or to put it a less melodramatic way, £10.
Lend £50 to a tramp in the hope of getting £60 back a month later????
THese companies must be insane. I cannot believe they survive.
mcflurry said:
playerone said:
One of the national newspapers pointed out that Lloyds charge 11 times more than the payday loan companies if you go into unauthorised overdraft.
Or call them in advance and arrange the overdraft. If you can't use a phone, then pop into the branch. Your £20 pub round paid off after the weekend now costs 3 pence in interest (£20 x 17.9% / 365 x 3)
7yrs ago I had an account with no overdraft as i didn't want to ever owe the bank money and i was operating on a VERY tight budget. One day they created an overdraft for me so they could add some bank charges, and then added charges for the overdraft. That meant that next month, things slipped a little further and i got more bank charges. Within a year i had extended the overdraft and been given a credit card so i could pay them with that when i didn't have enough overdraft left.
A year later, when i couldn't pay the monthly credit card bill OR the overdraft charges, they gave me a loan to pay it all off....
After four years of paying this off and rebuilding my credit, the bank made a clerical error and I ended up with a CCJ for non payment! It is nice to have those leeches off my back...
Edited by Hedders on Tuesday 29th June 15:05
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