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This is f#$%ing ironic: https://tctechcrunch2011.files.wordpress.com/2016/01/lendup_mobile_photo.jpg https://tctechcrunch2011.files.wordpress.com/2016/01/lendu

This is f#$%ing ironic: https://tctechcrunch2011.files.wordpress.com/2016/01/lendup_mobile_photo.jpg https://tctechcrunch2011.files.wordpress.com/2016/01/lendup_... At only 392.38% APR, we "won't screw you over" in any other way.

neffy 11y ago
Exactly. Or a mere 29%! Would be interesting to know where the difference is coming from. Guess the poor will be staying poor.
josinalvo 11y ago
The first question to ask is: how much would be owed and a payday loan shop? The second question to ask is: what is the percentage of non-payment. What is the expected return of LendUp per customer? I don't know these answers... But asking is better than accusing
chrismartin 11y ago
https://www.lendup.com/ https://www.lendup.com/ Dragging the sliders around, the APR varies between 203% to 755%. Granted, these are risky loans offered to people with bad/no credit record. It seems that rates "as low as 29%" (still higher than a credit card but lower than payday-type loans) are only offered to repeat customers with a demonstrated repayment history.
santaclause33 11y ago
Short term loans have artificially high APR.
markvdb 11y ago
Payday loans and predatory loan interest rates are illegal in at least several EU countries, like Belgium for example (sorry, link in Dutch): http://economie.fgov.be/nl/consument/consumentenkrediet/Kredietkosten/Maximale_tarieven/#.VqQeCK9ifeQ http://economie.fgov.be/nl/consument/consumentenkrediet/Kred... Absolute max APR is 11.5%. Charge more, and the consumer can just walk away from your shark credit without paying any interest. I wonder if there's been any scientific research on the effects (or the absence!) of such legislation. Anyone?
Karunamon 11y ago
Am I the only person that thinks representing a loan only designed to be held for a week or two at an annual rate is about as useful as the weatherman giving the forecast in degrees kelvin? It's a payday loan. You pay it back plus $10-50. And this is supposed to be "predatory"? Jeez. I'd have been screwed a few times without these evil "loan sharks".
- 55555 11y ago
  Yeah APRs are silly to apply here. Go rent a $300 TV for a week and then return it a day late and pay a $20 fee. If you wanted, you could call that a 2,500% APR.
- neffy 11y ago
  There's an argument that could be made that capitalism is based on the idea that those who understand compound interest are allowed to exploit those who don't. So no, you're not the only person who thinks that. And there are plenty of people who want you to keep thinking that. Especially people with bright new financial services apparently aimed at making the wealth gap even worse than it is already. Robbery by math.
  - Karunamon 11y ago
    You and I have tremendously different definitions of robbery. Every legitimate payday loan outfit I've looked at is pretty much above board with what they charge and how they work. Borrow X, repay X + Y on Z date, usually no more than a month in the future. So sure, if you feel fully informed consent is exploitative in any way.
    - neffy 11y ago
      And the entire population aced math in their well funded school system with small class numbers and well paid capable teachers, so no worries. I suspect we don't have different definitions of robbery so much, as of when it's appropriate to take advantage of people's ignorance and when it isn't. You'll understand better when somebody has taken advantage of yours.

neffy 11y ago

Exactly. Or a mere 29%! Would be interesting to know where the difference is coming from. Guess the poor will be staying poor.

josinalvo 11y ago

The first question to ask is: how much would be owed and a payday loan shop? The second question to ask is: what is the percentage of non-payment. What is the expected return of LendUp per customer? I don't know these answers... But asking is better than accusing

chrismartin 11y ago

https://www.lendup.com/ https://www.lendup.com/ Dragging the sliders around, the APR varies between 203% to 755%. Granted, these are risky loans offered to people with bad/no credit record. It seems that rates "as low as 29%" (still higher than a credit card but lower than payday-type loans) are only offered to repeat customers with a demonstrated repayment history.

santaclause33 11y ago

Short term loans have artificially high APR.

markvdb 11y ago

Payday loans and predatory loan interest rates are illegal in at least several EU countries, like Belgium for example (sorry, link in Dutch): http://economie.fgov.be/nl/consument/consumentenkrediet/Kredietkosten/Maximale_tarieven/#.VqQeCK9ifeQ http://economie.fgov.be/nl/consument/consumentenkrediet/Kred... Absolute max APR is 11.5%. Charge more, and the consumer can just walk away from your shark credit without paying any interest. I wonder if there's been any scientific research on the effects (or the absence!) of such legislation. Anyone?

Karunamon 11y ago

Am I the only person that thinks representing a loan only designed to be held for a week or two at an annual rate is about as useful as the weatherman giving the forecast in degrees kelvin? It's a payday loan. You pay it back plus $10-50. And this is supposed to be "predatory"? Jeez. I'd have been screwed a few times without these evil "loan sharks".

55555 11y ago
Yeah APRs are silly to apply here. Go rent a $300 TV for a week and then return it a day late and pay a $20 fee. If you wanted, you could call that a 2,500% APR.
neffy 11y ago
There's an argument that could be made that capitalism is based on the idea that those who understand compound interest are allowed to exploit those who don't. So no, you're not the only person who thinks that. And there are plenty of people who want you to keep thinking that. Especially people with bright new financial services apparently aimed at making the wealth gap even worse than it is already. Robbery by math.
- Karunamon 11y ago
  You and I have tremendously different definitions of robbery. Every legitimate payday loan outfit I've looked at is pretty much above board with what they charge and how they work. Borrow X, repay X + Y on Z date, usually no more than a month in the future. So sure, if you feel fully informed consent is exploitative in any way.
  - neffy 11y ago
    And the entire population aced math in their well funded school system with small class numbers and well paid capable teachers, so no worries. I suspect we don't have different definitions of robbery so much, as of when it's appropriate to take advantage of people's ignorance and when it isn't. You'll understand better when somebody has taken advantage of yours.