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Loan Sharks

nadger
Rising Star
Posts: 4,498
Thanks: 46
Registered: 13-04-2007

Loan Sharks

We've all seen the warnings about using loan sharks but there's a firm, advertising on TV, at 3762% for 30 day loan - ie £35 interest on £100 for 30 days.
Obviously anyone using such a company must have financial problems which the charges will only compound.
If you want the money the same day they charge an additional £15 which is taken off the amount you receive.
And this is legal  Sad
3 REPLIES
Moderator
Moderator
Posts: 25,786
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Registered: 14-04-2007

Re: Loan Sharks

Naturally these companies are allegedly offering very short term loans, usually until the next pay day but the quoted APRs are staggering Shocked
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jmd
Grafter
Posts: 2,933
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Registered: 30-07-2007

Re: Loan Sharks

I think these companies are thieves!
  They charge such high APRs and people find themselves owing far more than they borrowed in the end, and many of them encourage their borrowers to extend or increase the loan at what works out even higher APRs than they started out with!  But unfortunately people do borrow from them...................just the same as people buy from that store that used to be called Crazy George's [but cannot remember what it is called now] and their APR is about 30%.
I do think that some folk just do not understand about interest and need educating - and this is not just aimed at people that you may expect to see in debt.  As a visitor for a Benevolent Fund I have come across applicants for help who one would expect to know better than get involved in such companies because they are in well paid jobs and appear well educated.
Moderator
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Registered: 11-01-2008

Re: Loan Sharks

i think they do have maximum term wonga.com has a 30day max so despite having an apr of 2689% your interest won't build above the sum borrowed.
Will Moderate For Thanks