Quick Quid

[chrissa1]

I read the previous questions in "Adverts" about Quick Quid and their excorbitant Interest Rates. I borrowed £400.00 back in March and was due to repay it at the end of the month. Unfortunately I was unable to do this and therefore asked for an extension.
This was given to me. I was being called by a call centre in America and they were very pleasant to deal with.
To cut a long story short, I was offered a final settlement figure of £201.00 and this was paid yesterday.

This may sound unbelievable but it is true. They leant me £400 for 4 mon ths and I only had to pay them back £201.00!! I even received an e mail offering me another loan this morning. I won't be taking the offer up though.

Exorbitant Interest Rates?? Not in my experience. Any thoughts?

[factor-fiction]

Is this the one where the APR is over 5000%.
Great result it seems in your case, crissa1. I've never heard of this happening before.
Have you got anything in writing? I just hope this wasn't some sort of admin fee and there isn't a debt somewhere that's still mounting up at >5000% pa!

[buildersmate]

It is obviously a mistake which they may later realise about and come chasing for the rest of the money. If they do, you will have to pay up if you signed an agreement upfront as to the terms of the loan. If they don't, then it is indeed your good luck.

[avalentine]

You’re mentioning APR, so I want to clarify what APR means in terms of a cash advance.

APR stands for annual percentage rate. Annual means one year. So APR is describing how much a loan would cost if the loan was borrowed for an entire year. QuickQuid only lends short-term loans. Short-term loans are typically borrowed for four weeks. The law (Consumer Credit Act 1974) requires QuickQuid to list the APR simply for the fact that it’s a financial product, but APR really has nothing to do with a four-week loan. Yes, the APR is high, but if you take the time to find out how much a loan actually costs, I think you’d be surprised.

Here’s how it works:

If you borrow £100 from QuickQuid for four weeks or one pay period, the maximum amount you could be charged is £29.50. If you borrow £200, you’d be charged £59. Borrow £300 – charged £88.50. So you can see that though the APR listed is very high, the actual cost of a cash advance isn’t so high.

[chrissa1]

Thanks for that avalentine

[123everton]

I may be wrong, but, if you were to borrow £500 from the bank to repay over a year, and paid the loan off within four weeks, you would'nt be charged a penny.

[buildersmate]

You are indeed correct in your suggestion that 'I may be wrong'.

[factor-fiction]

Thanks avalentine but it still sounds expensive to me.

To pay a charge of £59 for borrowing £200 for 4 weeks seems a lot to me. If your finances mean you have to resort to borrowing money this way one month there is a fair chance you'll need to borrow again next month too. The costs would soon build up. If every time you want to spend £200 it really costs you £259 you will have a very expensive cost of living.

And the real trouble can start if you can't repay.

However, I can see it isn't too bad if it's genuinely a one-off, all other avenues of funding some essential expenditure have been exhausted and you are guaranteed to have more than enough money coming in in future to prevent the need for further loans.

[ummmm]

There has to be a mistake though. You borrow £400 and pay back £200. So they are £200 down before they've even taken the admin costs into account..

[weecalf]

Would check it out .Offer to lend them the £200 that way if they come looking for a vast sum some where down the line you can say look what about this money you owe me .Wont work but but will confuse them .If it sound too good it usually is.

[chrissa1]

Yes, but how doi I check it out? I've been told that I was offered a "settlement figure" and that everything was ok.
I agree that they are trying to suck me in to borrow more and more, which won't work by the way. I spoke to 3 different operatives and they all agreed that a settlement figure had been offered and accepted. If it IS a mistake I should find out at the end of the month when reminders are issued via e mail.
Like the bit about "lending" Them the money. Ha.

[WILLWONKER]

If i were you i would pay them what you know you owe and quick, this is a spratt to catch a mackeral, they will leave you be for x amount time and then come onto you for what you owe, hence a lot more interest, pay it now and keep proof of your payment