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Guest DissipatedYouthIsValuable
I think its 33.6% in fact

It might be. I remember thinking '******ing hell' anyway. And 33.6% would do that.

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It might be. I remember thinking '******ing hell' anyway. And 33.6% would do that.

No I meant the advert was a mistake - should it be 13.36% surely?

I have no idea what the legal maximum interest rate is.

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no i had a problem with talktalk end of last year when they billed me, and were calling the debt collectors on me because of their mistake, they agreed and gave me £40 credit on my bill, a month later had a letter from a company saying i can take out a loan for 300%. i then called talk talk about this and they said they'll sorted this out situation, so i hope it hasnt hit my credit rating if not than ill sue them as i did give them time to sort it out. The £40 credit was before this bad credit rating so i can still sue.

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No I meant the advert was a mistake - should it be 13.36% surely?

I have no idea what the legal maximum interest rate is.

No. The advert is correct. The interest charged on the loan example quoted is 333.6% APR. I've checked the calculation.

As far as I am aware, in the UK, there is no maximum limit to the interest charged. This is in contrast to some US States, where loans with an APR of over 100% are unenforceable i.e. you could not get a judgment against you for failing to pay such a loan.

Note however, that the legal definition of APR is different from country to country, and in the UK, it is different from the 'interest rate'. A £1000 interest only loan with 10% interest rate, would charge £100 per year. However, the APR when calculated according to the legal definition is higher than this. For a rate of 10%, this is a relatively small difference (a fraction of a percentage point). But for high interest rate loans (e.g. 100% p.a.) then the APR goes up exponentially (my recollection is that this loan example has an 'interest rate' of around 170%).

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