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| Typical 2689% APR | Can anyone tell me why the Government or the bank of England or whoever lets them get away with charging 2689% APR, when the Bank of England charges 1%. Unbelievable! |
Thursday, 30 September 2010
2689% APR! HOW DO THEY GET AWAY WITH THAT!
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5 comments:
These are sometimes called 'pay day loans'.
It's fine as long as you pay back on time and the alternative is to starve to death.
They're mainly used by people who have no credit rating / job / securities.
The interest charged on a £100 loan over a year would be £2,689.
They're not doing anything worse than pawn shops etc and have been going for a few years now.
It's the future unfortunately.
As jobs go and access to cash from banks dries up these type of companies will be the only alternative for millions of people.
Provident and other doorstep lenders are just as bad.
I was approached in Killie town centre a while ago by Provident and I told them to fuck off as I considered them loan sharks.
They're funded by 4 Venture Capitalist companies. Didn't recognise any names.
http://www.balderton.com/
http://www.greylock.com/
http://www.accel.com/
http://www.dawncapital.co.uk/welcome/our-investments/our-portfolio-companies.aspx
Repost from 28/09/10
Re major High Street bank owned by us.
My neighbours lad was being 'charged' £5 A DAY for being £96.00 over his approved overdraft limit (which was itself caused by their own fucking charges).
£5 a day = £1,825 pa + compound interest which some clever cunt will work out = gazzillions % interest.
If, on his minimum wage income, he managed to pay off say £50 one week he would effectivley only be £15.00 less in debt (+ interest) because they would have slapped on another £35.00 in charges (+ interest).
I lent him a hundred to pay it the fuck off which he repaid £25.00 a week, interest free.
High Street banks = loan sharks.
Banned, the whole system needs a shake up. It's time we in Scotland had a Nationalised Bank and the same for you in England. They could then give loans at reasonable rates and not screw every bastard that wants to deal with them.
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