And we thought we were foolish!

Liam Byrne

I just saw an ad for 24-7moneybox.com, and I couldn't believe the rate that appeared on-screen, so I checked out their website

http://www.247moneybox.com

Typical 2199% APR :eek:

That's right - no decimal point in there!!!! :eek:

Are moneylenders now somehow legit and able to advertise on TV, now that the banks have been exposed as con-men ?

Seriously ?

I mean, credit cards are expensive, but they're 18.9% APR

Or am I completely missing something here ? Please tell me that I am!

MaybeLogic

We have your ISP and 2 burly gentlemen are now on their way round to break your legs.

Liam Byrne

I'm serious, though - I must surely be missing something, or else the APR in the UK must be calculated differently.

Surely no-one would even propose lending or borrowing at that ridiculous rate ?

My name is URL

Desperate people do desperate things, and the desparate authorities don't give a shite

MaybeLogic

Liam Byrne wrote: »

I'm serious, though - I must surely be missing something, or else the APR in the UK must be calculated differently.

Surely no-one would even propose lending or borrowing at that ridiculous rate ?

I believe the UK lenders can set any rate they want.
At any rate, it's legal.

Aidric

I think that's the rate The Viper charges as well.

bonzodog2

There is a 'loan' company that operates here, called something like Provident Finance, that charges 50% a year. They tell the punters its 1% a week.

cruiser178

**** these *****,remember 1 thing,if you miss/late payment on one loan, you WILL be black listed for 5 years,what a shower of *****.So 1 late payment (not missed just late)your blacked listed.

phasers

I assume this is one of those 3 day loan things?

Bit of an overreaction like...

Liam Byrne

bonzodog2 wrote: »

There is a 'loan' company that operates here, called something like Provident Finance, that charges 50% a year. They tell the punters its 1% a week.

That's expensive, true.

But that's my point on this website - 50% is expensive, but it's NOWHERE NEAR 2199%, which at a guess must be about 5% per day ?

I'm sorry (and I don't want to misrepresent the company or drag them into disrepute) but I must SURELY be missing something, no ?

EDIT : CORRECTION / CLARIFICATION

Their example box in the corner contradicts the big bold rate of 2199%, and says :

Amount Borrowed                 £100
One-off registration fee	 	£2.50
Monthly Fee	 	        £25
Total amount repayable	 	£125
Term	             	                30 days
APR	 	                        1413.1%

That would seem to be less than 1% per day, although how this translates into an APR of 1413.1% is beyond me (and I thought I understood how these things were calculated).

Latchy

bonzodog2 wrote: »

There is a 'loan' company that operates here, called something like Provident Finance, that charges 50% a year. They tell the punters its 1% a week.

Money lenders to be avoided like the plague .

More and more people joining credit unions to get away from them

cruiser178

phasers wrote: »

I assume this is one of those 3 day loan things?

Bit of an overreaction like...

are u q me ??

It's another one of those loan companies that prey on people who have run out of money before they run out of week! It's like a cash advance until payday.

Borrow something like £50 on wednesday pay back £60 on friday, unfortunately once you start this lark, it would become a never ending spiral!

AnonoBoy

Aidric wrote: »

I think that's the rate The Viper charges as well.

Shtory with ya?

What you saying about my interest rates?

The Viper

oppenheimer1

I'm going to guess this is a short term "cash advance" service, for relatively small amounts of cash for short periods of time. If they charged normal bank rates on such a small principal sum they wouldn't make enough money to justify their existance.

Still though avoid like the plague.

marco_polo

Seems they charge £25 for every £100 borrowed over a very short number of days hence the astronomical APR.

Not that that makes them or their like any better TBH

The Pontiac

Liam Byrne wrote: »

http://www.247moneybox.com

Typical 2199% APR :eek:

It's after increasing to 2783% now.

<Ollie>

<Ollie> wrote: »

It's after increasing to 2783% now.

It's the nightrate, if you're desperate, we'll help at a price! :mad:

cruiser178

mbna,one late payement and was put on the irish credit berue,which stopped me from getting further loans,over 1 mark on my credit that was enough to get me stopped from further loans and i was fully payed up.one bad payment is all it takes.

cruiser178

cruiser178 wrote: »

mbna,one late payement and was put on the irish credit berue,which stopped me from getting further loans,over 1 mark on my credit that was enough to get me stopped from further loans and i was fully payed up.one bad payment is all it takes.

Three years ago they'd have upped your limit!

Liam Byrne

<Ollie> wrote: »

It's after increasing to 2783% now.

Hadn't spotted that discrepancy....the graphic on the right says 2783% while the text on the right says 2199%

Maybe they're giving out NAMA-style "discounts"

And the example says 1413.1%

Just out of curiosity, does anyone have any idea how they'd come up with those rates ? What percentage per day / month would apply ?

The Pontiac

cruiser178 wrote: »

mbna,one late payement and was put on the irish credit berue,which stopped me from getting further loans,over 1 mark on my credit that was enough to get me stopped from further loans and i was fully payed up.one bad payment is all it takes.

It might have being a blessing in disguise. You might have applied for a mortgage and lost thousands..

Liam Byrne

Liam Byrne wrote: »

Hadn't spotted that discrepancy....the graphic on the right says 2783% while the text on the right says 2199%

Maybe they're giving out NAMA-style "discounts"

And the example says 1413.1%

Just out of curiosity, does anyone have any idea how they'd come up with those rates ? What percentage per day / month would apply ?

I'm guessing that they assume that you borrow, say £10 and never pay a penny for a year - compounded interest would mean you'd have to pay £27,830 back. :eek:
edit: you can even text a request! just imagine it, brahms in the pub can't stand a round, you can text a loan and bingo drinks are on you. <sigh>

Here is an example:
Amount Borrowed
£100
One-off registration fee £2.50
Monthly Fee £25
Total amount repayable £125
Term 30 days
APR 1413.1%

cruiser178

Deleted User wrote: »

Three years ago they'd have upped your limit![/QUOT
my point is ,one payement was missed,,and black listed, 3 years ago was a long time ago

cruiser178

<Ollie> wrote: »

It might have being a blessing in disguise. You might have applied for a mortgage and lost thousands..

was around a long time before that...tg

cruiser178

cruiser178 wrote: »

Deleted User wrote: »

Three years ago they'd have upped your limit!

my point is ,one payement was missed,,and black listed, 3 years ago was a long time ago

I know, it just shows what the financial institutions are like!

A banker, is someone who lends you his umbrella when it's sunny and takes it back when it rains.

Acoshla

I just heard about local money lender stories where I live recently, the highest interest I heard of was around 500%, people paying back a tenner a week for years on like 50 euro loans for hairdryers, clocks and toasters, heard of one old woman who had 6 books for different money lenders paying them all back with these sort of rates, ridiculous stuff, but perfectly legal apparently

Spadina

Spadina wrote: »

I just heard about local money lender stories where I live recently, the highest interest I heard of was around 500%, people paying back a tenner a week for years on like 50 euro loans for hairdryers, clocks and toasters, heard of one old woman who had 6 books for different money lenders paying them all back with these sort of rates, ridiculous stuff, but perfectly legal apparently

The old tallyman, there's many that lived a lavish life off the backs of poor mugs from the local estate!

cruiser178

Spadina wrote: »

I just heard about local money lender stories where I live recently, the highest interest I heard of was around 500%, people paying back a tenner a week for years on like 50 euro loans for hairdryers, clocks and toasters, heard of one old woman who had 6 books for different money lenders paying them all back with these sort of rates, ridiculous stuff, but perfectly legal apparently

i think you are are talking x****e

Acoshla

cruiser178 wrote: »

i think you are are talking x****e

Why so?

aidan24326

Liam Byrne wrote: »

I'm serious, though - I must surely be missing something, or else the APR in the UK must be calculated differently.

Surely no-one would even propose lending or borrowing at that ridiculous rate ?

There was an episode of panorama or dispatches or one of those shows a while ago about money lending agencies (money lending thugs in reality) in England. The type of guys who run most of them are exactly what you might expect, ruthless unscrupulous gangsters who prey on the vulnerable, the desperate and the plain foolish. And they do indeed charge huge interest rates, up to 2000% in some cases. (yes that's two thousand)

So cruiser178, Spadina is not necessarily talking sh1te at all. I'm not aware of the legal status of these kinds of moneylenders in Ireland, but they are legal in England so I imagine they're legal here aswell.

Bonito

bonzodog2 wrote: »

There is a 'loan' company that operates here, called something like Provident Finance, that charges 50% a year. They tell the punters its 1% a week.

+1

Called Provident. Little blue book. Some fooker knocks on your door at half 7 on saturday mornings driving a range rover vogue asking for money. My mother got one YEEEEEEEEEEEEARS ago. Now she just asks the nice people at the credit union

Also, Mr range rover used to have new one every year. He hasn't got a new one since 08 :pac: