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It is essentially the same as payday loans. No one would pay thousands of percent interest but when framed different people take them up.
by robryan 12y ago
It is essentially the same as payday loans. No one would pay thousands of percent interest but when framed different people take them up.
- rahimnathwani 12y agoIt's actually the opposite of payday loans. For example, if someone were to take a 1 month loan for $200, at 15% monthly interest, then they would pay $230 at the end of the month. In the UK at least, loans must quote an Annualised Percentage Rate (APR), which is the IRR (Internal Rate of Return) over a year. So, any adverts or contracts for this 1 month loan would have to show prominently '435% APR'. The loan is framed as '435% APR', when in fact you're paying $30 for a $200 1-month loan.