1291% apr loan

leemk · 11 Jul 2017 at 14:53

Just saw an add on TV for Sunny loans with an APR of 1291%.
Thats borrowing £1000 for 12 mths and paying nearly £13000 back , Jesus no wonder people get in financial difficulty.

CREATIVE!11 · 11 Jul 2017 at 14:56

They prey on ignorance, I know people say blah blah peoples fault. But some people are just really dumb and need daddy govt to protect them from getting fisted by financial predators.

They should step in and just ban that ********. Doesn't offer anything worthwhile anyway.

Rannoch · 11 Jul 2017 at 14:56

Unfortunately those lenders prey on people, they are scum.

Ayahuasca · 11 Jul 2017 at 14:57

I can just picture the type of bloke running that company.

cheesyboy · 11 Jul 2017 at 14:58

Their website suggests that you can only take £1000 over 6 months. APR is 1291%, and that gives a total repayment of £1986.

Not sure where your £13,000 comes from?

Naff8000 · 11 Jul 2017 at 14:58

Not much sunny about that loan.

leemk · 11 Jul 2017 at 14:59

I presume when you get accepted they put what you are paying back in very small print as no sane person would agree to that.

Martynt74 · 11 Jul 2017 at 15:00

cheesyboy said:
Their website suggests that you can only take £1000 over 6 months. APR is 1291%, and that gives a total repayment of £1986.

Not sure where your £13,000 comes from?

Plus isn't loan interest capped on these type of loans now to 100% of the original loan?

To be fair they have a purpose, people with bad credit need money, no-one in their right mind would normally lend to them so you get huge rates of interest to account for the inevitable bad debts.

Be interesting to actually see how profitable they are once bad debts are written off compared to normal lenders.

cheesyboy · 11 Jul 2017 at 15:00

leemk said:
I presume when you get accepted they put what you are paying back in very small print as no sane person would agree to that.

No - look at the website. It's very clear.

leemk · 11 Jul 2017 at 15:00

cheesyboy said:
Their website suggests that you can only take £1000 over 6 months. APR is 1291%, and that gives a total repayment of £1986.

Not sure where your £13,000 comes from?

Just used a APR calculator online and thats what it came back with.

leemk · 11 Jul 2017 at 15:02

cheesyboy said:
No - look at the website. It's very clear.

Ahh right thought it was fixed 1291%

cheesyboy · 11 Jul 2017 at 15:04

leemk said:
Ahh right thought it was fixed 1291%

It's still an eye-watering amount of interest

3 payments in, and you've covered the £1000 you borrowed. But you're only halfway paid down.

Maybe now's the time to spare a thought for those who have so few choices in where to get cash from that they have to use this sort of service.

MikeTheNative · 11 Jul 2017 at 15:18

It's all well laid out and clear, people should know what they are getting in for.

Vonhelmet · 11 Jul 2017 at 15:23

MikeTheNative said:
It's all well laid out and clear, people should know what they are getting in for.

People don't understand maths, don't understand money, and sometimes don't have a lot of options.

glenimp617 · 11 Jul 2017 at 15:25

Work colleague does this all the time (he's a young'un)

wants to go out on the booze, but has no money till payday so he borrows £60 and pays it back the week after

izzop · 11 Jul 2017 at 15:29

glen8 said:
Work colleague does this all the time (he's a young'un)

wants to go out on the booze, but has no money till payday so he borrows £60 and pays it back the week after

You what!!! :eek:

Just to go out and have a drink?

If you can't afford something you go without until you can, simple. Especially when it comes down to being able to go out for a night.

something daft already!! · 11 Jul 2017 at 15:32

Pay day loans is another evil perpetrated by these evil type scum. They are a trap people can easily fall into.

StriderX · 11 Jul 2017 at 15:33

It's fine, we now live in an idiocracy where loan sharking has been legalised.

Haggisman · 11 Jul 2017 at 15:38

Where does someone who needs to borrow £1000 and can only get accepted for this kind of finance get a spare £331/month to pay it back?

Surely if they had that kind of disposable income they wouldn't be in that position in the first place?

adolf hamster · 11 Jul 2017 at 15:39

it's ridiculous, these people are preying on the unfortunate.

you don't have to be a genius to figure out the simple formula that any of this stuff isn't beneficial.

it's like phone contracts, i've heard people taking out contracts who i know damn well can afford to buy the thing outright up front, but they "didn't like spending a big chunk of cash in one go"