September 5, 2011 at 3:04 pm #12807
Most people will have by now seen the ads on UK television for these "loans until you get paid", like wonga and quick quid! The ads illustrate that it can help people who have too many bills for example that month……by charging them 1734% APR!!! (and over 2400% APR on Wonga!)
The idea is that if you’re "stuck" for £100 on a Monday, they approve you within an hour and you pay them back on perhaps the Friday. The interest doesn’t sound to high over that period but if someone hit an unexpected difficulty and couldn’t pay on time, it could really mount up. That would mean that if someone borrowed, for example, €200 and suddenly couldn’t pay it back, in three months they would owe €1,067.
The reality is, they are cashing in on people’s desperation. If someone’s bills are too high and they borrow €100, the extra €20 in interest that they pay back just means €20 less that they have to pay on bills the following week!
If those facilities came here, it would just add to trouble for people!
What do you think??September 5, 2011 at 3:32 pm #116118JedtMember
Thats some mark up they are adding on. Its like a legit loan shark….don’t like the idea at all. 😕September 5, 2011 at 4:03 pm #116120FabienneMember
It should not be legal at all. 👿 👿 👿
It makes me mad at it, and I’m sure people who uses it don’t realised much that the 20 euro in interest is so high does not worth it and it’s 20 euro less the following week.
It’s aiming at the weakest financialy and it’s not fair.
Hope they’ll never come here.
FabienneSeptember 5, 2011 at 9:12 pm #116137Taylor5Member
Would the regulator let this practice come in here? I do look at the Adverts… the Wonga advert is very catchy, its the poor that will get caught out, the poor will just get poorerSeptember 6, 2011 at 9:01 am #116147
Funny you mention loan sharks, Sabbi, I remember years ago someone complaining that loan sharks were their only option and they had to pay 50% interest over 6 months. This still works out over 10 times the loan sharks’ interest rates! 😯 The FSA is quite strict over in the UK but I reckon they get legitimised by showing how they provide a "valuable service" and that it’s only for a matter of days! It’ll be interesting to see the troubled cases that come out of it in a few years! Worse case scenaria, I think the max they lend is €1,000. A sudden change in circumstances and that person owes €18,340 back 12 months later! Makes you think!September 7, 2011 at 11:04 am #116174mammycoolParticipant
I don’t think they can come over here. There is a legal limit to the interest rate that you can charge in Ireland. Cannot remember what it is but the loan sharks are actually illegal based on the interest rates that they charge.September 7, 2011 at 1:33 pm #116186Taylor5Member
I don’t think they can come over here. There is a legal limit to the interest rate that you can charge in Ireland. Cannot remember what it is but the loan sharks are actually illegal based on the interest rates that they charge.
I was talking about this only yesterday and i was told there is a Drogheda company who are legal and above board and they charge nearly 600%, they are somewhere over on Trinity Street… hawkeye i will pm you the name if you wantSeptember 8, 2011 at 2:45 pm #116243
Yeah, please do Taylor, I’d be curious to know that for info!
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