Should be illegal

[SIRandyraven]

Watching daytime tv - snowed in and working from home.
An advert just come on tv .... they are offering pay day loans at an incredible low interest rate of only ...

2356%

That's only 2355.5% above base rate !

I might switch my mortgage to them ....
Lets see ....

If I was to borrow £100,000 pounds that would be an interest payment of only ....
£2.3 million per year ....

I will give them a call,,,,

[benny3008]

2.3 Million PA, Made me laugh. :)

[ummmm]

I pointed that out to someone the other day. Who in their right mind would take out one of these loans?

[hc4361]

If you borrow £50 you pay back £64.75 next pay day.
It is not a long term loan but it is useful if you need money quickly to pay for an unexpected expense and your overdraft is at the maximum.
How much would the bank charge for unauthorised overdraft or bounced cheque?
I see nothing wrong with it. Their customers are usually high risk.

[SIRandyraven]

They prey on the desperate.... and those who don't understand finance and then rip them off.

Bit like the we buy your gold type adverts.
I did a bit of research into these cowboys a couple of months ago.
I was able to take my gold into cooksons in London and get a proper price.

Some of the gold dealers that advertise on TV , would not even give me a price per OZ/Gram ...
Bit like me asking you to dig my garden, but i will not tell you what i will pay you !

Saw a girl with a stand in the local shopping mall last week.
she was buying gold on the spot.
How much do you pay per Gramm for 9ct , I asked.
£4 she says ....
Not bad .....
I buy £1000 worth ...
Take train to London Monday.
Sell for market rate at time of £7.80 per gramm and make a nice profit ....

Might going into trade myself :-)

[hc4361]

Or do they provide a service to the desperate? If you have no money and kids to feed, what would you do if you had no family to borrow from and the banks won't help?

[SIRandyraven]

Yes I agree ....
Why not charge the chavs 2500% interest...
Just means less money to spend on Fags and cider when the next Giro comes in.

[hc4361]

They have to give an APR by law, but it is inappropriate for short term loans. Nobody would pay that sort of interest. £10 on a £50 loan is 20%.

[SIRandyraven]

Yes it is their money ....that Uncle Gordon has given them ....
Things will change soon ....lol
The gravy train is running out of track.
Those that work and pay taxes are no longer willing to support the chavs , in fags and 2500% loan repayments.

As a person who has always worked and paid 40%+ tax since the 90's ...the only sensible option is to move out of the UK.
So don't worry , i will close the door behind me ...sure no one will miss my little bit of tax I pay each year ...£30K last year ....

[SIRandyraven]

The Governments fiscal policy don't require tax income any longer.
They can simply print money and lend it them selves ...

[SIRandyraven]

vibrasphere ...

Sorry If it was too many words for you.
The day I look for approval in what I reply, from someone who thinks 2500%+ interest sounds reasonable , will be a dark day in my life.

Anyway back to my Fags, cheap cider and online Foxy bingo ...
Oh was that the door ...might be my giro ...
Need to get down PO and cash it ....

[Mustardmit]

..now now! respec! "fix up -look sharp!" ;-)

[parra]

I bet SIRandy gets more than the minimum wage