A loan company charging 2356% APR!!!

ANXIOUS

Just seen this advertised on the tv and went onto their web site http://www.quickquid.co.uk/fee-schedule.html
I know this is in england but does anyone know, if these companies are in Ireland. and if so has anyone used a company like them?

They even give people money to refer their friends.

WindSock

I don't understand APR.

Agent Smith

WindSock wrote: »

I don't understand APR.

http://en.wikipedia.org/wiki/Annual_percentage_rate

ANXIOUS

WindSock wrote: »

I don't understand APR.

It stands for annual percentage rating i find it hard to explain but here is a good website http://www.citizensinformation.ie/categories/money-and-tax/personal-finance/loans-and-credit/APR

ejmaztec

I hope for their suckers' customers' sake, that they've shifted the decimal point 2 spaces to the left.

ANXIOUS

ejmaztec wrote: »

I hope for their suckers' customers' sake, that they've shifted the decimal point 2 spaces to the left.

Thats why i went onto the site, i thought that they forgot to put the decimal in. Everything on the site is geared for the borrower to get stuck in a rut.

wudangclan

seems reasonable.

Gone Drinking

I don't know what a tracker mortgage is..

ANXIOUS

Gone Drinking wrote: »

I don't know what a tracker mortgage is..

Cue "daddy whats a euro"

Diabhal Beag

Gone Drinking wrote: »

I don't know what a tracker mortgage is..

Old joke is old

WindSock

ANXIOUS wrote: »

Cue "daddy whats a euro"

AWwww, I dunnnnohhh

ANXIOUS

WindSock wrote: »

AWwww, I dunnnnohhh

Finance really isnt your thing windsock :D

ejmaztec

This is the most interesting thread that's ever been on boards.







:pac:

phasers

You pay them back 2 days later though so how much are you paying in real terms?

Dartz

If you take a loan at that rate, you deserve what happens to you. How in the hell is anybody supposed to pay that off, unless they're paying it within a week?

Sea Sharp

Is this a legitimate company? Or is it one of those 'We'll break your legs' types of companies pretending to be legitimate.

AckwelFoley

im going to apply for a chicken.

I wonder how they will calculate APR on that?

rainbowdrop

ANXIOUS wrote: »

Just seen this advertised on the tv and went onto their web site http://www.quickquid.co.uk/fee-schedule.html
I know this is in england but does anyone know, if these companies are in Ireland. and if so has anyone used a company like them?

They even give people money to refer their friends.

Yep!! Saw that ad yesterday and assumed they'd left a decimal point out..... That surely CAN'T be right, can it?:eek:

phasers

snyper wrote: »

im going to apply for a chicken.

I wonder how they will calculate APR on that?

6 eggs a day

kenon

Its for small loans over a short period of time.

AlmightyCushion

In fairness to the company, it's designed for people who are a bit short towards the end of the month before pay day and it gets paid back after a couple of days. If they were charging standard interest rates it would only be about a euro interest and it wouldn't be worth their while doing it.

Senna

My maths might be wrong, but i work it out as; Borrow €1000 for one week and pay back €1450.

amacachi

In one example on the site you get 200 quid, pay back 50 on your next payday and 250 the following payday.

galwayrush

Dartz wrote: »

If you take a loan at that rate, you deserve what happens to you. How in the hell is anybody supposed to pay that off, unless they're paying it within a week?

Borrow to play the Lotto might work................:pac:

Yakuza

(first post in AH, be gentle!)

rainbowdrop wrote: »

Yep!! Saw that ad yesterday and assumed they'd left a decimal point out..... That surely CAN'T be right, can it?

I'm afraid the 4-digit APR is correct. In the example they give on the listed page (borrow £200 on May 3rd , pay £50 at next pay day (I've assumed it to be May 30th) and then pay £250 on June 30th), the daily interest rate turns out to be approximately .78%. To calculate an APR (the annual percentage rate), you have to multiply 1.0078 by itself 365 times, which (according to my trusty calculator) is 16.95, or expressed as a percent, 1695%.

That's about 100 times more expensive than a credit card, and 200 times more than a personal loan. I thought there were laws against this kind of excessive interest. Perhaps by calling it a "finance charge" they circumvent usury laws.

Boring maths bit here (read at your own peril)

if i is the *daily* interest rate, then for the situation above:
200 = 50/(1+i)^27 + 250/(1+i)^58.
Solving for i (I used Excel's goal seek), you get i = 0.007784631652209.
As above, (1+i)^365 = 16.9520373993902, or 1695%

Burkey0

Zack Morris up to his usual tricks again I see

rainbowdrop

Yakuza wrote: »

(first post in AH, be gentle!)

I'm afraid the 4-digit APR is correct. In the example they give on the listed page (borrow £200 on May 3rd , pay £50 at next pay day (I've assumed it to be May 30th) and then pay £250 on June 30th), the daily interest rate turns out to be approximately .78%. To calculate an APR (the annual percentage rate), you have to multiply 1.0078 by itself 365 times, which (according to my trusty calculator) is 16.95, or expressed as a percent, 1695%.

That's about 100 times more expensive than a credit card, and 200 times more than a personal loan. I thought there were laws against this kind of excessive interest. Perhaps by calling it a "finance charge" they circumvent usury laws.

Boring maths bit here (read at your own peril)

if i is the *daily* interest rate, then for the situation above:
200 = 50/(1+i)^27 + 250/(1+i)^58.
Solving for i (I used Excel's goal seek), you get i = 0.007784631652209.
As above, (1+i)^365 = 16.9520373993902, or 1695%

Visualising you pushing your specs back up your nose while you were typing that a la Mad Professor!! lol

Wish I had you with me when I was sitting my business calculations exam last June. Could have really used your help, you sound like a very intelligent wo(man)....