Did I See Right

[weecalf]

Some firm is lending money at 847per cent per annum .what would a grand cost to borrow over say 5 years

[Dee Sa]

I thought the govt had stopped all this but I saw something similar at the end of a tv advert the other night. with an APR even higher. Daylight robbery some people must be pretty desperate poor souls.

[fiction-factory]

Depends on whether you repay in equal instalments or at end of period

[fiction-factory]

This says £42000. Per month it's £706.
http://www.thisismoney.co.uk/money/cardsloans/article-1633405/Loan-repayment-calculator.html
But it's not compulsory to take one

[weecalf]

Good point but it then a moral thing were one does not take advantage of some ones else's troubles

[hc4361]

The law states that all lenders must show the APR so that potential borrowers can see the cost of borrowing. That is fine for mortgages and personal loans of a year or more, it is an essential easy comparison.

However, this law also applies to very short term loans of a few days or weeks where APR is of no use whatsoever.
If a company agrees to loan £100 for two weeks and expects £110 back most people would agree that is reasonable - there is no security and the borrower is high risk but the APR works out a very high Annual Percentage Rate even though the loan will never be over a year.

These companies would never offer loans of 1 year, let alone 5 years.