I loathe the Loan Sharks that advertise on the telly and flash the APR in white letters on a light coloured screen so that the poor buggers that come looking for a loan are totally unaware of how much they will have to pay.
I was given to understand that the government were going to clamp down on the high percentage rates. This will probably happen after turkeys vote for Christmas so I was not surprised tonight to see an advert that had
an APR of 1,215%.
It's time that they were made to show exactly how much the punter will have to pay. In the above example they should advertise in big easy to read letters and number something like
"Borrow �ã1 off us and at the end of 12 months you will owe us �ã12.15p ...
... and if you roll the loan over to 24 months you will owe us �ã147.62.
Remember, that's if you borrow just one, single, solitary pound."
A mate of mine reckons that a lot of the people who take out these loans would still ignore the figures because ...
"They will have a 'certainty' in the 2.30 race at Haydock and fully
intend to pay the money back as soon as the nag romps home a winner!"
... but as a retired Tax Inspector he has a jaded view of his fellow man! :whistle: