Jump to content
House Price Crash Forum
Sign in to follow this  
Wait & See

Get A Great Rate Of 34.9%

Recommended Posts

And this is how they disclaim the APR %:

Understanding the APR

The APR stands for Annual Percentage Rate and is the interest payable on the amount borrowed and other charges expressed as an annual rate charge. All lenders have to tell you what their APR is before you sign an agreement.

APRs are a good way of comparing similar products but are not so effective when comparing different products. The following table demonstrates this:

Payday loan charges comparison table Type of loan Amount Month Total repayment APR Actual interest

Installment £500 36 £745 16.9% 49%

Installment £500 60 £970 16.9% 94%

Payday £500 1 £625 1737% 25%

As you can see the APR for the two installment loans are the same but the actual interest repaid as a percent of the loan is hugely different – and much higher than a payday loan.

Share this post


Link to post
Share on other sites

Even the big banks have "divisions" which specialise in shocking loans.... LTSB for instance have Balck horse which apart from doing all the car finance etc also has 60 or so "off high street" branches..... here they attract customers in and give them relatively small loans , their whole book has a half decent bad debt profile compared to their main loan book.... but becasue the salesmen are rewarded (or were) largely on margin retained it meant that some customers were getting loans with APRs of 50% or more..... quite shocking when they were relatively low risk..... some lenders advertise the high charges they make, others don't but they are all it somwhere along the line.

All financial institutions will make an indecent margin if they can get away with it... after all they are in it for profit... and theres nothing illegal in it.... but of course at the same time they are trying to persuade you that they are a good company to have a relationship with... hwich is possibly not the case.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   296 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.