beorhthelm
A. Virgo, Football Genius
- Jul 21, 2003
- 36,299
Borrow £500 for a year and you'll pay £23.5k in interest !
but this doesnt happen. they cap the interest after a fixed amount. the APR is a misnomer because they legally have to display it like that, in reality its a fixed fee repayment.
much was made of admission yesturday that 40k people failed to repay. however, thats from 1.2m customers, and represents 3%. i wonder how many fail to repay credit card and bank overdrafts? and 1.2m suggests a large demand as stated above, and these companies arent lending to people with no prospect to pay back. its not even new, cash converters have been around doing the same for decades, not to mention pawn brokers.