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[Darth Loo-knee]

I heard this advert on the radio and it mentioned the apr is 1737%... So I have Googled them thinking that has to be wrong they have missed the decimal point off... But its right

Now I aren't after a loan myself, but anyone who is really stuck and uses them surely are going to get their pants pulled down in interest

I have never heard of APR so high has anyone else?

[TheBoy]

half of most other payday loans , most are 3400% apr

[GastronomicKleptomaniac]

half of most other payday loans , most are 3400% apr

Ouch.

Having said that, some of the women in their adverts aren't bad...

[Richie London]

I see one on tv the other day at 1737% must be same one

[jonny2112]

Isn't it something to do with the fact that the loans are for a short period of time, but when the Annual PR is calculated it works out to be such a large amount?

[Entwood]

Not that I agree with payday loans in any way .. it is ripping of the people who can least afford it IMHO ...  the APR's quoted are a bit of a nonsense.... as the folks using the service probably don't understand them

The law requires APR to be quoted for all loans, the idea being that a comparison on the cost of the loan can be made, however the bit people forget is that APR stands for ANNUAL percentage rate... ie you have the loan for a year and pay back over that time.

Payday loans are designed for much shorter periods, generally a week or a month, and are commonly sold with far simpler terms being quoted .... "borrow £100 for a week and it will only cost you £10 a week extra over a month .... so the gullible person thinks that is 10% interest ... the APR here is a wopping 5214% !!!  (£100 loan, repayment after a month £140, compounded over 12 months .....)

The problem is that the folks who take out the loan often cannot payback on time, and the interest rates mount rapidly and uncontrollably. many folk think they should be banned, but they will only be replaced by something equablly as bad ..

[STMO123]

http://www.bbc.co.uk/news/business-16905144

[Rods2]

Fools and their money..... 

[tunnie]

For anyone stupid enough to think they are a valid way of getting out of debt, they deserve to loose their money.

[albitz]

There speaks a man who has never experienced desperation.It may not be logical Tunnie,but desperate people do desperate things,and these companies prey on the desperate.

[Vamps]

I think I posted something similar here recently, comments very much on the lines of other's

[tunnie]

There would be other ways, be declared bankrupt (which is not so bad these days) - Take out real long term, low APR loan. Never understand how/why people get into £30,000 or £60,000 of credit card debt. 

[albitz]

May already be bankrupt,with no credit rating for normal avenues for borrowing and no money for essentials.Shouldnt happen to people with kids,as DSS should always see them alright afaik,but otherwise - sudden loss of income etc. can suddenly send finances into freefall.

I agree on the point about huge credit card debts though.Imo,its trying to maintain a lifestyle that you no longer have the funds to support - head in sand attitude which ends in tears usually.

[tunnie]

May already be bankrupt,with no credit rating for normal avenues for borrowing and no money for essentials.Shouldnt happen to people with kids,as DSS should always see them alright afaik,but otherwise - sudden loss of income etc. can suddenly send finances into freefall.

I agree on the point about huge credit card debts though.Imo,its trying to maintain a lifestyle that you no longer have the funds to support - head in sand attitude which ends in tears usually.

Was a thought of mine when buying a place, hence getting a flat that's in a commuter paradise and easily rented out.

I would move home if things became that desperate, but guess some people don't have that option 

[aaronjb]

May already be bankrupt,with no credit rating for normal avenues for borrowing and no money for essentials.Shouldnt happen to people with kids,as DSS should always see them alright afaik,but otherwise - sudden loss of income etc. can suddenly send finances into freefall.

I agree on the point about huge credit card debts though.Imo,its trying to maintain a lifestyle that you no longer have the funds to support - head in sand attitude which ends in tears usually.

Sorry what was that you said, Albs? I can't hear you for all this damned sand in my lugoles.