In the current economic climate it's not right nor proper that these businesses are allowed to charge fees like this and get away with it. I know some people may get desperate during hard times but there must be other ways!!!
Looks to me like they might be targetting vunerable members of society!
Northwind – Member
Yup, APR just isn't relevant on a short term loan.
It is when the people most attracted to these types of loans are those with the least ability to pay them off short term. Fro the link above: "If you have a one-period loan, you may extend your loan a maximum of five times by logging into your personal account and selecting the "Request An Extension" link or by calling our Customer Service team".
Legalised loan sharking springs to mind as a description.
To borrow it from my bank will cost me a £25 unarrnaged overdraft fee plus £0.76 in interest. Who's a loan shark?
So arrange an overdraft and avoid the fee.
Or get a credit card and put it on that. The question is how you compare the cost of putting it on a CC compared to this loan. If only there was a nice easy metric for directly comparing different loans…
For me, not a problem. I have a nice large arranged overdraft limit, upped it just prior to buying the new bike. For the kind of people who need the kind of loans in the OP getting an arranged overdraft at all may be an issue.