Discussion
Sorry if this has been posted before but I was amazed when I saw this advertised on TV. http://www.quickquid.co.uk/fee-schedule.html
13 years in office and a government which claims to be trying to eradicate poverty thinks this rate is ok.
13 years in office and a government which claims to be trying to eradicate poverty thinks this rate is ok.
I could lend you fifty quid for an hour, and charge you a tenner in interest for it, or I could lend you fifty quid for ten years, and charge you the same tenner in interest, the interest or cost of the loan is the same, but the APR's would be light years apart.
The 'A' in APR is for 'Annual', so if the loan is for a few days or a month, rather than 'Annual' the numbers go all wonky.
APR is meaningless on loans as small and as short term as these are.
Not that that has anything to do with the situation of the borrower or the lender at this level, but the APR is the least of it.
It's a bit like day insurance, where you can cover a car for a day at say £40, and then saying that would be mental, because that's £14600 for a years car insurance, who would pay that? But it's not for a year, it's for a day.
The 'A' in APR is for 'Annual', so if the loan is for a few days or a month, rather than 'Annual' the numbers go all wonky.
APR is meaningless on loans as small and as short term as these are.
Not that that has anything to do with the situation of the borrower or the lender at this level, but the APR is the least of it.
It's a bit like day insurance, where you can cover a car for a day at say £40, and then saying that would be mental, because that's £14600 for a years car insurance, who would pay that? But it's not for a year, it's for a day.
Edited by Balmoral Green on Friday 12th March 21:17
I saw a TV ad, some jobbing actor talking to himself, with one half of his face, then turning the other way around on screen, you know what I mean, satellite for a short term loans, till next week, sort of thing, with an APR of 2697% in huge text halfway through the ad (so hardly small print). Can't remember it's name something like 'Quick loans' of something, frightening.
Hedders said:
Anyone want to tell me what the 'APR' is when a bank charges £35 for going £1 overdrawn for one day? 
That happened to me once, at the time I was writing cheques to pay off my credit card, posted in, and it went through the account one day early,than I expected, I went £20 overdrawn, for just one day, I was paid my wages the next day, and was charged £35 for a letter and a £700 overdraft facility. When I went in to discuss it, with my statement, and told them look I was just a tiny bit too keen to get my cheque sent to pay off my credit card, their credit card, from the same bank! I was asked if I would be interested in making a personal loan application to pay off the credit card. Obviously, in the shock, I told them I was closing the account, and moved all my business to a building society, within 2 weeks.Their loss.
pugwash4x4 said:
balmoral is spot on
if you leant £50 to some bloke you KNEW was struggling to make ends meet (and he wasn't a mate) you'd want at least £20 on top just in case wouldn't you?
its really not that unfair, and also stops people getting involved with loan sharks!
erm, sounds like they're already involved with loan sharks to me!if you leant £50 to some bloke you KNEW was struggling to make ends meet (and he wasn't a mate) you'd want at least £20 on top just in case wouldn't you?
its really not that unfair, and also stops people getting involved with loan sharks!
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