Jon Posted January 2, 2008 Report Share Posted January 2, 2008 Was searching around earlier on Google and one of the sponsored links that came up was for a credit card.... check out the APR. Link to comment Share on other sites More sharing options...
Nelson_R32 Posted January 2, 2008 Report Share Posted January 2, 2008 Bloody hell! I was looking at moneysupermarket loans (for R32) and the APR on a £5000 loan varied from 7-8% APR then suddenly went up to 170% APR! Who in there right minds would sign up for that?!?! Link to comment Share on other sites More sharing options...
Soulboy Posted January 2, 2008 Report Share Posted January 2, 2008 This is where you see the 'credit crunch' hit for people in the UK with bad credit ratings I guess. Link to comment Share on other sites More sharing options...
Jon Posted January 2, 2008 Author Report Share Posted January 2, 2008 I thought the maximum legal APR in the UK was around 48% although i could be wrong. Link to comment Share on other sites More sharing options...
Booster Posted January 3, 2008 Report Share Posted January 3, 2008 Nope, I have seen agreements where customers have stitched themselves up with 400% APR!!!! Log Book Loans have their typical APR on their frontpage (as required by law) at 343.4%APR Link to comment Share on other sites More sharing options...
patently Posted January 3, 2008 Report Share Posted January 3, 2008 Ouch! But do bear in mind that APRs can be misleading, as can any standard form of comparison. A log book loan is the perfect example, as it is intended to be a short term loan only. Say I lent you £100 overnight (12 hours) and charged you £5 for the privilege - is that unfair? But the annual percentage rate (APR) that is equivalent to 5% over 12 hours is (I think*) a rate of a few billion per cent APRs are good for comparing like with like (mortgages, say) but are problematic if comparing a 3 year loan with a 7 day loan. ----------------------------- *I admit to not being 100% certain of how to calculate an APR, but I'm assuming it's the equivalent annual % rate of interest Link to comment Share on other sites More sharing options...
Booster Posted January 3, 2008 Report Share Posted January 3, 2008 I know exactly what you are saying Log Book Loans are just con merchants though. Even if it is a two week loan they will still charge an arrangement fee of up to £195!!!!! Link to comment Share on other sites More sharing options...
patently Posted January 3, 2008 Report Share Posted January 3, 2008 Only for the desperate, then. Sounds like a case of "if you can afford the terms, you don't need the loan" Link to comment Share on other sites More sharing options...
sidicks Posted January 3, 2008 Report Share Posted January 3, 2008 [ QUOTE ] Say I lent you £100 overnight (12 hours) and charged you £5 for the privilege - is that unfair? But the annual percentage rate (APR) that is equivalent to 5% over 12 hours is (I think*) a rate of a few billion per cent ----------------------------- [/ QUOTE ] About 293,892,380,000,000,000% actually ! [ QUOTE ] *I admit to not being 100% certain of how to calculate an APR, but I'm assuming it's the equivalent annual % rate of interest [/ QUOTE ] APR takes into account all charges associated with a loan and the amount of capital outstanding at any one time (unlike flat rate interest) and so is the fairest way of comparing two loans. As identified above, for short term loans i.e. days/weeks rather than years, the impact of fixed charges can make the APR look enormous! Sidicks Link to comment Share on other sites More sharing options...
patently Posted January 3, 2008 Report Share Posted January 3, 2008 Just for the sake of clarity, if anyone is willing to take a loan at 293,892,380,000,000,000%, feel free to PM me. Link to comment Share on other sites More sharing options...
patently Posted January 3, 2008 Report Share Posted January 3, 2008 (I would be willing to waive the arrangement fee for quality applicants ) Link to comment Share on other sites More sharing options...
Teacake Posted January 3, 2008 Report Share Posted January 3, 2008 [ QUOTE ] Just for the sake of clarity, if anyone is willing to take a loan at 293,892,380,000,000,000%, feel free to PM me. [/ QUOTE ] Oh, okay, but I can only loan you £1000. Link to comment Share on other sites More sharing options...
Ari Posted January 4, 2008 Report Share Posted January 4, 2008 I don't get the joke... Link to comment Share on other sites More sharing options...
mb Posted January 7, 2008 Report Share Posted January 7, 2008 293,892,380,000,000,000% of 1000 is more lucrative than 293,892,380,000,000,000% of 100 ? Link to comment Share on other sites More sharing options...
Teacake Posted January 7, 2008 Report Share Posted January 7, 2008 Uh, no, my feeble attempt at humour was based on patently's offer of 293,892,380,000,000,000% loans. His post was sufficiently ambiguous that I could deliberately misconstrue him as asking for a loan rather than offering it. Told you it was feeble. Link to comment Share on other sites More sharing options...
patently Posted January 8, 2008 Report Share Posted January 8, 2008 Bad news, s8ed. The interest on the arrangement fee is already punitive ... expect baliffs any day now Link to comment Share on other sites More sharing options...
Teacake Posted January 8, 2008 Report Share Posted January 8, 2008 [ QUOTE ] Bad news, s8ed. The interest on the arrangement fee is already punitive ... expect baliffs any day now [/ QUOTE ] They'll have to be quick. Booster's bailiffs are already down to the floorboards. Link to comment Share on other sites More sharing options...
Booster Posted January 8, 2008 Report Share Posted January 8, 2008 We get a lot of money for copper piping you know! Link to comment Share on other sites More sharing options...
garcon magnifique Posted January 8, 2008 Report Share Posted January 8, 2008 In some places you get even more for piping coppers... Link to comment Share on other sites More sharing options...
Teacake Posted January 9, 2008 Report Share Posted January 9, 2008 [ QUOTE ] We get a lot of money for copper piping you know! [/ QUOTE ] That's not a copper pipe, it's a copper bolt... Linky (MWW) Link to comment Share on other sites More sharing options...
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