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Guest The Relaxation Suite

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Guest The Relaxation Suite

Jebus! Typical 2278% APR! APR stand for "Annual Probable Return" to me if I take out a loan with them right? I mean... I assume so as their webside does not define APR... This time next year I'll be a millionaire! Muah Ha Ha!

2278% stands for:

We're in the money,

We're in the money;

We've got a lot of what it takes to get along!

We're in the money,

The sky is sunny;

Old Man Depression, you are through,

You done us wrong!

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2278% stands for:

We're in the money,

We're in the money;

We've got a lot of what it takes to get along!

We're in the money,

The sky is sunny;

Old Man Depression, you are through,

You done us wrong!

I can't speak for this lot particularly but I had a conversation with a guy that runs a payday loan store in New York once. He made a reasonable living but his default rate was horrendous. In a reasonably free market, it seems unlikely that people operating within the law are making a killing doing this.

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Guest The Relaxation Suite

I can't speak for this lot particularly but I had a conversation with a guy that runs a payday loan store in New York once. He made a reasonable living but his default rate was horrendous. In a reasonably free market, it seems unlikely that people operating within the law are making a killing doing this.

A sound and intelligent reply. But nowhere near as catchy as the song.

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A sound and intelligent reply. But nowhere near as catchy as the song.

Sorry, you're right. I'll try and be a bit more wild-eyed in future. This is the interweb after all.

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Jebus! Typical 2278% APR! APR stand for "Annual Probable Return" to me if I take out a loan with them right? I mean... I assume so as their webside does not define APR... This time next year I'll be a millionaire! Muah Ha Ha!

APR is the Apache Portable Runtime. The HPC website (in common with a majority of all websites worldwide) requires it.

You could charge that much interest, have zero write-offs, and still make a loss on administrative costs if the loans are small and short duration.

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exactly. That rate is somewhere around the same as 'lend me £50 and il give you £60 next week when i get my giro'

Not overly unreasonable if you ask me

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Saw an ad on TV yesterday. Chap wanted £70 for a week, happy smiling salesman informs him it would only cost £9.22. A whopping 650% a year.

Does the UK not have any usury laws on the books?

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Saw an ad on TV yesterday. Chap wanted £70 for a week, happy smiling salesman informs him it would only cost £9.22. A whopping 650% a year.

Does the UK not have any usury laws on the books?

What do you think we are a democracy?

Hong Kong has a limit of 80% APR, China IIRC has 50% APR it is illegal to loan people at a higher rate and people (loan sharks) often do go to prison for higher rates, this woman who charge 888% in Macau on casino debts was imprisoned last year.

Though of course you often find bodies in suitcases off the coast of Macau if people don't pay up the loan sharks and loan sharks in HK are ar5e holes, as they will chase indirect family members for loans.

One of my idiot uncles went to a loan shark, he did a runner, so they chased one of my other uncles. He paid up but everybody has disowned him.

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well, hold on a minute. Although the APR is astronomical, it's because the term is so short.

You borrow £50 one day, and pay between £60 to £65 for the pleasure. APR is a bit misleading in these circumstances. How much do you think they make after costs etc? A tenner? Probably less than that.

I'm most surprised that any business takes this sort of stuff on. I'm not defending it, just pointing out that APR is a crude tool, which always makes very short loans look loopy, because people compare them with what they are used to for longer term loans. It's not 'apples and apples' unfortunately, but people think it is for some reason.

APR is good for providing MPs who do not understand the number a way of expressing populist outrage in select committee hearings.

To put it another way, if the company was to charge an APR of 20%, more typical of a credit card, on a £50 loan for the same period, they's charge about £1 in interest. Would that work?

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Saw an ad on TV yesterday. Chap wanted £70 for a week, happy smiling salesman informs him it would only cost £9.22. A whopping 650% a year.

Does the UK not have any usury laws on the books?

Yes of course - they're called Banking Licences.

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The point is that they don't pay it back in a week. In a week they at best pay £9.22 and roll the loan over, or better still borrow £79.22...

Yeah these ads on TV are very worrying! because to advertise on TV you must have a market! So someone is taking them up on the generous offer!

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Saw an ad on TV yesterday. Chap wanted £70 for a week, happy smiling salesman informs him it would only cost £9.22. A whopping 650% a year.

Does the UK not have any usury laws on the books?

Can you lend me £70? I will give you £70.05 next week, honest.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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