2356% APR !!!

Yup, you read the thread title correctly.. 2356% APR

I couldn't believe my eyes when I saw that.
I was watching some TV and the adverts came on and there it was ... An advert for a 'payday loan'
Here is the actual site itself;
QuickQuid
It's a loan designed for those who need cash quickly and can repay quickly.

My concern is for any who do not happen to read the APR and think they might be able to extend the repayments slightly.. It would only take one slip up for the interest to start trickling in...

In these times we are all concerned about our money and how we spend it. We are all aware that many fall for the advertising too..

With the amount of people who have been stung recently by the banks, you'd think that companies who set an APR of 2356% would be monitored or at least questioned about why their APR is set so high.

Obviously, some company/bank/person with a lot of money has set this up..

Personally, I feel this is a scam. It might work great for some, but this company knows for sure that others will get into difficulty and eventualy lose their property..

They offer a loan up to 1000 GB pounds.
Add 2356% over a year and you will have to repay 23, 000

And don't forget to read the small print..

Finance charge will be between £10 and £14.75 per £50 borrowed.

Surely, this company has to be watched.. it seems nothing more than a legalized 'loan shark' company advertising on national TV.

Yep sick, but seeing as there short terms loans, i can see why they charge so much.

But should this be allowed?
Isn't it 6% a day, bad for most.

[edit on 11/23/2009 by andy1033]

The usual rate for loan sharks is 5 points per week. But this APR is outrageous, what a scam!! I never seen such a rip off company...
Well, guess i'm in the wrong business! lol

must be a typo.

I belive it should be 23.56% APR

EDIT TO SAY I CHECKED THE FAQ. and it is correrect. it is for people to pay back within a year. and it also say int he FAQ that your will never be charged for the full year. meaning thatif you go overdue there is a legal process to make the debt absolutly void.(not bankrupcy)

[edit on 23-11-2009 by MR BOB]

[edit on 23-11-2009 by MR BOB]

Originally posted by MR BOB
must be a typo.

I belive it should be 23.56% APR

Remember its short term loans, so they want interest to be high. Amazing the law allows this though.

I don't think it should be allowed..

It's a massive amount of interest.

Ok, they are in business and need to make a return, but this seems geared towards stitching people up in order to gain physical property..

reply to post by MR BOB


If it was a typo, then they made the same mistake on the TV advert as they did on the website.

It was the rate advertised that prompted me to check their site which shows the exact same rate, in bold, in the small print.

This has been common in the USA for years. Here they have "pay day advance" and "title loan" agencies. They second issues loans using your vehicle as colateral. It became so bad that laws were imposed in a lot states.

One company in South Carolina was charging 28% weekly on loans as high as $7,500 USD. Any loan between $7,500 USD and $12,500 recieved the special rate of 25.7%.

well.. why would someone even think about contracting a loan like this?? I remember the case of a lady , she lost her house over a 500 £ loan. All legal!

Actually the website states:

"Finance charge will be between £10 and £14.75 per £50 borrowed. Typical 2356% APR."

With other words, you will also get an "admin fee" on the top of the loan. The finance charge will be added to the loan, and you will also pay 2356% for that one too. This is just disgusting, simply targeting poor people in difficult situations..

These things aren't uncommon. I've done it once before myself as a matter of fact.

Typically these are just for people who need some quick cash before payday. Perhaps you borrow 300 dollars and pay back 330 when you get paid next. It's a small fee really, but if you break it down to the interest rate it seems outrageous.

I receive a credit card offer a few weeks ago with an APR of 79.9 percent!!! I get credit card offers all the time and I've never seen anything like that. I don't have a credit card by the way.

I actually called the company and asked them if it was a joke and if it was legal. The woman said they could charge up to 99.9 percent!