"Alan" wrote in message
...
So if you wanted £100 today, and paid it back a week later, it
would cost
you about £6.30 for the loan.

That doesn't sound unreasonable.
That's the flaw in the APR figure. Short term loans of a few days
show such a result.


However, it's not £6.30, it's more like £13/14 including "fees" so
its around 14% per week. Furthermore, this is the rate for lower
risk customers as they must have a bank account and proof of income.

I thought APRs had to include fees.

--
Andy

"Tiddy Ogg" wrote in message
...
On Wed, 30 Dec 2009 20:50:04 GMT, "bartc" wrote:


"Alan" wrote in message
...


Recent day-time TV advert for a pay-day loans offers a quick
service. I
would think so with an interest rate of 2356% APR !

So if you wanted £100 today, and paid it back a week later, it would
cost
you about £6.30 for the loan.

That doesn't sound unreasonable.
That's the flaw in the APR figure. Short term loans of a few days
show such a result.

Yup. I once borrowed 99p for a coffee and paid back £1 two hours
later.

APR on that loan was 1,311,739,700,002,037,861,542%

Cost of credit was 1p.

--
Andy