Body & Soul1 min ago
Loan Advert
I don't know if anybody else has seen the advert for a company called either '' Quick quid, or Lend a quid''
or something very similar but I could not believe my eyes when the APR. was shown at the bottom
of the screen it was a staggering 2354 % which if I am right means that if you borrowed just £15. over
a year you would have to pay back in the region of £35,000.
Now I honestly thought the government had made loan sharks illegal, obviously not, but I am surprised that ITV have approved this advert for broadcast (by the way it was on in the Anglia TV region) and
I have now seen it 3 times so I know that the APR. shown is correct
or something very similar but I could not believe my eyes when the APR. was shown at the bottom
of the screen it was a staggering 2354 % which if I am right means that if you borrowed just £15. over
a year you would have to pay back in the region of £35,000.
Now I honestly thought the government had made loan sharks illegal, obviously not, but I am surprised that ITV have approved this advert for broadcast (by the way it was on in the Anglia TV region) and
I have now seen it 3 times so I know that the APR. shown is correct
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This link gives the repayment amounts. I still don't know how they work the percentages out though!
http://www.quickquid.co.uk/fee-schedule.html
http://www.quickquid.co.uk/fee-schedule.html
In essence, their rates are as much as £14.75 per (30 day) period for every £50 borrowed - and this is for every period while you have the money. This is a 30-day percentage rate of 29.5% - i.e. if you borrow £100, at the end of the period, you owe £129.50. To get the equivalent APR, you need to multiply 1.295 by itself 12.1666 times - since there are more than 12 "30-day periods" in a year.
This gives 23.2246 - equivalent to paying £2322.46 pounds in order to borrow £100 for a full year. This is an APR of 2222.46%.
In a leap year it would be 2242.56% (!)
This gives 23.2246 - equivalent to paying £2322.46 pounds in order to borrow £100 for a full year. This is an APR of 2222.46%.
In a leap year it would be 2242.56% (!)
Moneylenders/loan sharks advertising on television!!
Trouble is, there is nothing illegal in these activities, something I've always found difficult to understand.Sign of the times, I suppose, with credit so hard to find in the normal quarters. Also, as they spell out the huge APR and not hide it in small print idiots who do borrow cannot complain later they didn't know what they were doing...
Trouble is, there is nothing illegal in these activities, something I've always found difficult to understand.Sign of the times, I suppose, with credit so hard to find in the normal quarters. Also, as they spell out the huge APR and not hide it in small print idiots who do borrow cannot complain later they didn't know what they were doing...
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