Extremely competitve loan offer!!!
Extremely competitve loan offer!!!
Author
Discussion

Cpn Jack Spanner

Original Poster:

2,632 posts

235 months

Sunday 26th October 2008
quotequote all
Usually used to getting loan offers through the door, mostly offering an APR of between 15-28%. Things seem to have gone far worse than I thought with the bank problems...





And they say things are going to get worse!

yikesyikesyikesyikesyikesyikesyikesyikesyikesyikesyikesyikesyikesyikesyikesyikesyikesyikes

rich1231

17,340 posts

290 months

Sunday 26th October 2008
quotequote all
Cpn Jack Spanner said:
Usually used to getting loan offers through the door, mostly offering an APR of between 15-28%. Things seem to have gone far worse than I thought with the bank problems...





And they say things are going to get worse!

yikesyikesyikesyikesyikesyikesyikesyikesyikesyikesyikesyikesyikesyikesyikesyikesyikesyikes
Short term loans thats an ok rate. Your reaction is one of ignorance of APR's, and risk for the market providen work in.

mybrainhurts

90,809 posts

285 months

Sunday 26th October 2008
quotequote all
rich1231 said:
Short term loans thats an ok rate.
No it's not...

bigandclever

14,392 posts

268 months

Sunday 26th October 2008
quotequote all
http://www.myprovident.co.uk/products/LoanCalculat...

Have a play, 500quid over 31 weeks is 365.1%

ewenm

28,506 posts

275 months

Sunday 26th October 2008
quotequote all
Saw an advert on Facebook for a loan that worked out at 427% APR. Erm... no thanks...

rich1231

17,340 posts

290 months

Sunday 26th October 2008
quotequote all
mybrainhurts said:
rich1231 said:
Short term loans thats an ok rate.
No it's not...
yes it is for the market they operate in. Risk profile of customers are higher.

Key should be the total cost of lending.

Edited by rich1231 on Sunday 26th October 21:03

pgilc1

40,169 posts

227 months

Sunday 26th October 2008
quotequote all
Thats horrifying.

mybrainhurts

90,809 posts

285 months

Sunday 26th October 2008
quotequote all
rich1231 said:
mybrainhurts said:
rich1231 said:
Short term loans thats an ok rate.
No it's not...
yes it is for the markt they operate in. Risk profile of customers are higer.

Key should be the total cost of lending.
Listen, you...

mouseymousey

2,642 posts

267 months

Sunday 26th October 2008
quotequote all
rich1231 said:
Short term loans thats an ok rate. Your reaction is one of ignorance of APR's, and risk for the market providen work in.
This one pops up now and again, Rich is right, it's a ignorance of how APR works that makes this seem so bad.

spikeyhead

20,479 posts

227 months

Sunday 26th October 2008
quotequote all
So if I lend someone £100 knowing he gets his monthly pay at the end of the week and he pays me back £120 am I being usuary? Without that he'd need to dip into his overdraft and that would cost him over £30. If that money means that he can get his car through the MOT and carry on getting to work then surely its a good deal all round.

Now for a mate I'd just hand over the cash without a charge, but for someone I didn't know well I think a charge of £20 is minimal.

but if that's a charge for half a week, what's the APR for that? its huge, maybe 2000%APR, but on a short term loan in the circumstances described it seems reasonable to me.

Cpn Jack Spanner

Original Poster:

2,632 posts

235 months

Sunday 26th October 2008
quotequote all
So, it's a loan for the stupid? Seems easier just to put a few quid aside each week for a few months...


Then again, I am tempted! Let's see, they are willing to lend £500 - that's 500 Whole Pounds. Hmmm, with £500 I'd be able to fill all my cars with petrol (one of which easily swallows over £100's worth alone) including the one in America! And have change for, er, not a lot. Then I could drive somewhere - but not get back? Hmmm...

Han, I'll just get the money and blow it on cigarettes and drugs. Suppose I better start by taking up smoking then.

So, they are calling me 'high risk'??? Sounds like a clear case of defamation! Do I have a case?


sidicks

25,218 posts

251 months

Sunday 26th October 2008
quotequote all
spikeyhead said:
So if I lend someone £100 knowing he gets his monthly pay at the end of the week and he pays me back £120 am I being usuary? Without that he'd need to dip into his overdraft and that would cost him over £30. If that money means that he can get his car through the MOT and carry on getting to work then surely its a good deal all round.

Now for a mate I'd just hand over the cash without a charge, but for someone I didn't know well I think a charge of £20 is minimal.

but if that's a charge for half a week, what's the APR for that? its huge, maybe 2000%APR, but on a short term loan in the circumstances described it seems reasonable to me.
You're right.

Lend someone £100 and expect £120 back, and the following APRs are implied:

over 1 week = 1310363%
over 2 weeks = 11348%
over 1 month = 970%
over 1 year = 20%

I'd say that given the paperwork involved in a loan arrangement an 'admin fee' of £20 isn't unreasonable, so the APRs are somewhat misleading.

:-)

Sidicks

BERGS2

2,839 posts

278 months

Sunday 26th October 2008
quotequote all
http://www.logbookloans.co.uk/

for the most toxic of loan customers....

sniff diesel

13,127 posts

242 months

Sunday 26th October 2008
quotequote all
BERGS2 said:
http://www.logbookloans.co.uk/

for the most toxic of loan customers....
437% APR!

sidicks

25,218 posts

251 months

Sunday 26th October 2008
quotequote all
sniff diesel said:
BERGS2 said:
http://www.logbookloans.co.uk/

for the most toxic of loan customers....
437% APR!
That's not a great rate............
:-)
Sidicks