[Closed] quick quid!

This has been done a few times before. Very short term loans for relatively low amounts of money. The total cost of the loan isn't that much. The APR is misleading but regulations say it has to be shown.

there are enough warnings on the actual advert (albeit in small print) about the APR and how it shouldnt be use for long term loans (dur, like we would!).

i don't think it's misleading, though someone with bad eyesight might think it says a fully respectable 23.56%! nope, it's honest and up front...two thousand three hundred and fifty six percent, bargain.

if you are in the unfortunate position that you have to use this service you can rest assured that by the time you've repaid your short term loan you'll be right back at the start of shit creek!

Im sure its no worse than the old 'provy' schemes or a lot of the christmas clubs/hamper type co.s - one I remember you didnt even get back what you put in!

two thousand three hundred and fifty six percent, bargain.

thing is, it wouldn't be worth anyone lending you £50 for 3 days if the APR was only 25% say. Not worth the paperwork. I'd say the APR is appropriate for the type of loan (exploitative of a particular market, arguably). It's not something you want to be doing on a regular basis.

Most people would use Credit Cards for this type of loan and pay in full for interest is charged. I guess this is aimed at those with poor credit ratings.

curiosity got the better of me so i checked it out. £50 for 30 days will cost you £15. approx 10 times more expensive than a credit card.

i know it's legal and theoretically anyone using the service should be able to think for themselves, it just strikes me that for anyone resorting to using it...the only way is down!

i think the point of the pay-day-loans is that the loan is only outstanding for a few days or a week or so, to cover you until payday if things get tight. i think if you were in the realm of borrowing for a full 30 days, you'd probably be better off looking at other options.

Just because it's legal doesn't make it right. Preying on the most vulnerable in society, hope the companies fail and the owners lose money/houses etc.

i, personally, don't think its particularly wrong. no more wrong than any other lender anyway. IF its used in the manner it is meant to be. as someone above said, there is no reason for a lender to loan relatively small amounts of money over short periods of time, with a rate which is comparable to regular long term loans.

if its so wrong to charge 2k+% interest, why not set up a company selling them for 20-30%? i bet you'd not make a penny.

Just because it's legal doesn't make it right. Preying on the most vulnerable in society, hope the companies fail and the owners lose money/houses etc

I imagine there are a few loan sharks out there that are preying for the same thing. I know who I'd rather borrow money from.

For me it's not the interest rate, I can see why you have to charge that amount to make it work with paperwork etc. The problem is the type of people who will use the service, generally speaking it will be people on low incomes who can't get money from anywhere else and need to pay for food, elec bill etc. Can you really see many people who earn 25k a year and over using this service?

I imagine there are a few loan sharks out there that are preying for the same thing. I know who I'd rather borrow money from.

Your right but it's the lesser of two evils.

curiosity got the better of me so i checked it out. £50 for 30 days will cost you £15

If I go £50 overdrawn for one day (interest rate 19.5% AER) my bank charges me £25. Your loan seems cheaper, as long as you can pay it back quickly.

Big Dave will lend you some wonga, the interest will be considerably higher and non payment might cost you your knees*

interest rates may go up and......well, just up really

The problem is the type of people who will use the service, generally speaking it will be people on low incomes who can't get money from anywhere else and need to pay for food, elec bill etc.

And who will probably have a massive telly, the full sky package, a 40-a-day habit and a tendency to sink a few pints each evening....

And who will probably have a massive telly, the full sky package, a 40-a-day habit and a tendency to sink a few pints each evening....

I think you're pretty clueless as to how some people really struggle for money. There are, or course people like that out there who abuse the system, but you really need to take your Daily Mail blinkers off.

The thing is they don't HAVE to lend the money at all, waster or struggler alike, if it didn't exist they'd have other consequences of not having the money handy anway, all the presence of such companies/products does is give people a chance of scraping through if they need it. IF they balls it up, tough, the same applies to all of us. If they're genuine they'll realise it costs, accept that and factor it in.