Body & Soul0 min ago
Just Seen An Ad For Everyday Loans.......
8 Answers
Only 99.9% APR! Beat that!
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"Rates between 11.8% APR and Maximum 1721% APR"
https:/
"Representative example: borrow £700 for 6 months. 1st monthly repayment of £168.45, 4 monthly repayments of £224.60, last monthly repayment of £112.20. Total repayment £1,179.05. Interest rate p.a. (fixed) 185.39%. Representative APR 611.74%. Our loans are available for 3 to 9 months depending on the loan amount - rates between 295.58% APR and a maximum APR of 1294%."
Payday Loans from a Direct Lender | All Credit Considered (cashfloat.co.uk)
APR can be very misleading.
For example, if you take out a £100 loan that requires you to pay back £110 a year later, the APR is very low. However if you take out a £100 loan that requires you to pay back £110 a week later, the APR is very high. That's despite the fact that the actual cost of taking out the loan is exactly the same.
ignores time discounting
difficult to make a profit of £10 in a week
much easier to do it in a year...
If the example were valid then a landlord wd say, rent of £1000 a month, just give me £12000 and we will have done with it for a year.
when work a day loans started they were forced to advertise 2368% per year. I thought it was an obvious literal error - it wasnt
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