302% Apr

[pastafreak]

Eek...just saw ad for small,short term loans. Typical APR of 302%...this seems almost immoral. Wasn't there an outcry a while back with wonga ? How is this different?

[Old_Geezer]

It isn't different, but there are plenty of folk who are prepared to defend a loan shark's right to charge whatever they want; and to view the desperate as simply foolish, it being their own fault for agreeing, and in no need of laws to protect them.

[New Judge]

So if it isn't any different, OG, you'd be happy to lend a stranger £100 for a fortnight with just 20p reward for your trouble?

[hc4361]

Several times I've lent a neighbour £100 and she insists on giving me £120 two or three weeks later. Fair enough.
I take the risk that one day she won't pay me back.

[New Judge]

Quite so, hc. But at an APR of 460% (if you lend her the hundred quid for a fortnight) in the eyes of some on here you should do it for 20p !!!

[hc4361]

I agreed entirely with your first post on this thread, NJ. APR should not be used for short term loans.

[Old_Geezer]

Were I a business I'd work out if it was worth it. And if it were, I would; and if it were not I'd know that I didn't have a valid moral business, and being a decent sort and having a conscience. I'd not go into it. As an individual why would I loan anyone anything ?

[Old_Geezer]

... loan any stranger anything.

Like I obviously &%^$£&£$&^*&£ typed before hitting submit.

[ummmm]

OG - How are they suppose to make any money?

[Old_Geezer]

Open a greengrocers ?
Get a job ?
I'm unsure what the question means.
One makes money by having a good business plan.
How should I make money when the banks and building societies pay me four fifths of nowt ? Or am I to be abused whilst loan sharks prosper ? One law for one lot another for another ?

[hc4361]

These short term loan companies can provide a real lifeline for sensible people who find themselves in dire straits. It certainly happened to me when I was younger and I was glad of the help available at the time.

Fickle people will abuse these loans but fickle people would abuse any system available to them. Don't punish the needy because of the greedy. If somebody has no choice but to borrow a couple of hundred quid for two or three weeks, £20 - £30 is a fair price to pay.

A solution would be to force high street (and online) banks to loan to everyone but you and I would end up paying for that.

[ummmm]

They are a business, they need to make money.

[Old_Geezer]

Don't we all.

None of us should be allowed to do so by ripping folk off though. The law should ensure protection and moral standards. If it doesn't help the citizens in society what's it there for ?

[ummmm]

They are not ripping anyone off. The interest rates are perfectly clear.