Worst Apr On The Net?

[Demonic Angel]

A while ago, I found a link to a bad debt company who were advertising loans at something like 200% APR.... well, I found one much much worse...

Check this out!

This company will offer you a loan at a typical 437.4% APR.... no, that's not a typo! 437.4% APR Oh and it's secured on your car as well so if you can't afford repayments, they'll take your motor away!

Talk about preying on the vulnerable! People are penny pinching at the moment due to rising bills, and what's worse, this company is advertising on Facebook!

So therefore I'm opening my own finance company - S.Krewyu & Co Ltd and you can get a loan from me and I'll only charge you 350% APR..... :P

Can anyone find a higher APR on the net than Logbook Loans?

[Boro Sera]

>> Beat you ! Beat you by miles ! <<

Scary thing is that it's Legal and people will do it !

[Demonic Angel]

Oh Rich, you love to beat me don't you..... I just wish it was with that cane rather than 1845% APR! :P

Thats stupidly shockingly bad!

[Boro Sera]

Oh Rich, you love to beat me don't you.....

( Shhhhh..........it's supposed to be a secret ! ) :(

[Hoovie]

You would think they are spoof websites if there were not such sharks about - the ****** *********s!!

Credit Problems? whatever credit problems you have, they will be worse after a loan like that

[cabcurtains]

Most people dont actually understand APR, it can be very high yet the actual interest amount paid will be low. It all depends on the amount borrowed and over how long. The one to watch out for is the flat rate.

If anyone wants a lesson in calculating loans, i am always willing to help :)

[Andie_M]

OH MY GOD!

i feel sorry for people just now who are rather poor and this credit crunch kicking in :(

[Hoovie]

Most people dont actually understand APR, it can be very high yet the actual interest amount paid will be low. It all depends on the amount borrowed and over how long. The one to watch out for is the flat rate.

If anyone wants a lesson in calculating loans, i am always willing to help :)

I think most people understand it enough for comparative purposes.

The Payloan place with 1,845% APR.... they would say that no one pays that APR as it is a very short term 'tide you over' loan - bet you anything if the legislation was not in place for these companies to disclose the actual effective APR and the calculations on how the costs are made up they would not do it.

Joe Bloggs has an unexpected cost before payday and needs £600 - he borrows it from payday and pays back £750 less then a month later. If his finances are so tight that he has no other way to get £600 for a short term (overdraft, credit card, etc), then a month later he is another £150 down on his super tight budget and ends up borrowing again from these people and then the cycle goes on - that is what happens and where the APR is useful as short-term loans for the desperate end up going on and on - hence the phrase "on the never-never"

Legalised Internet Loan Sharks is what these companies are and it makes me very, very angry. Only difference is that they don't go around the poor estates knocking on doors with a false smile - Hopefully at least the fact that there is a headline 1845% clearly displayed will make some people wake up and smell the coffee!

There should be an absolute maximum APR that can be charged which can still be stupidly high but not at those insane levels.

[Norfolk n Chance]

>> Beat you ! Beat you by miles ! <<

Scary thing is that it's Legal and people will do it !

"The typical APR” is an APR at or below which the advertiser reasonably expects, at the date on which the advertisement is published, that credit would be provided under at least 66% of the agreements which will be entered into as a result of the advertisement.

At least that clears up their APR!

[cabcurtains]

£600 over a month at a total cost of £750, 25% per month flat interest rate x 12 = 300% Flat rate. That £600 over a year would give a total interest cost of £1800, 600 costs 1800!

Should this be banned, but what can you do? If i was lending money to high risk people would i not want a high return as the chances are most won't pay the bill?

Supply & Demand?

[Hoovie]

Supply and Demand?

the kind of people who can only qualify for this kind of loan are those least likely to be able to manage it - that is the problem. the supply of this kind of problem actually (IMO) just makes their situation worse and worse and their finances spiral down and down.

Supply and Demand? if it were as simple as that, then Heroin and Crack Cocaine should be available legally, as the kind of people who run these loan shark companies are not a lot better then drug peddlers. The end result of both their 'products' is a customer base who have no hope of a decent life as they have squandered what money they have on short term fixes

Cut the supply! Do the financially destitute a real favour by NOT supplying short-term extortianate loans and help them in other ways - there are local credit unions that are setup to deal with those unfortunate people and can help in a much more sensible way. Why does it need to be a right to give anyone who wants it a loan with a click of a mouse button?

[chatman]

Now Labour wants to give FREE BROADBAND ACCESS to the poor.. so these Loan Shark companies will be even better baiting now..... :no: :no:

[cabcurtains]

Supply and Demand?

the kind of people who can only qualify for this kind of loan are those least likely to be able to manage it - that is the problem. the supply of this kind of problem actually (IMO) just makes their situation worse and worse and their finances spiral down and down.

Supply and Demand? if it were as simple as that, then Heroin and Crack Cocaine should be available legally, as the kind of people who run these loan shark companies are not a lot better then drug peddlers. The end result of both their 'products' is a customer base who have no hope of a decent life as they have squandered what money they have on short term fixes

Cut the supply! Do the financially destitute a real favour by NOT supplying short-term extortianate loans and help them in other ways - there are local credit unions that are setup to deal with those unfortunate people and can help in a much more sensible way. Why does it need to be a right to give anyone who wants it a loan with a click of a mouse button?

Unfortunate people in tough situations, lack of knowledge potentially putting them in the situation and lack of knowledge for them to get out.

[cabcurtains]

Now Labour wants to give FREE BROADBAND ACCESS to the poor.. so these Loan Shark companies will be even better baiting now..... :no: :no:

Combine this with all the online gambling and there is a real recipe for disaster..... :(