Subscribe now and choose from over 30 free gifts worth up to £49 - Plus get £25 to spend in our shop
It seems that dodgy financing is back after 18 months.
I don't get it....
I assume that you are talking about very short term borrowing with corresponding high interest rates, which as I understand it has never been any different?
No story really other than the companies are displaying the APR on the ads.
It is reasonable for the products it's charged on.
it's those companies advertising on tv for payday advances. that's the interest in the small print at the bottom of the ads. obviously the rates reflect the nature of the loans in question, but is it going out on much of a limb to suggest that many of the people utilising such a service wouldn't appreciate what they were committing to and if they did would likely need to use it repeatedly, managing to cover the costs for how long?
short term, high risk loans for relatively small amounts of money = high interest rates.
Its not that bad, something like £9 per £100 per week.
Nobody actually pays 2356% APR - the companys concerned are on a quite a tight leash with regulators. If a client is unable to repay within the originally agreed short term period, then that interest rate has to be suspended and a repayment plan agreed with much friendlier terms and no compound interest.
To be fair to them - it's lots clearer than credit card transferring money interest rates etc..