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Loan Sharks?


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Preying on the weak, ignorant, gullible and desperate: but surely even the thickest realises that it's wrong to have to pay back ?88,000 for an ?800 loan? :? The fact that folk are being dominated by such intimidation, mean that they have no confidence in the Police and Criminal Justice system? :?:shock:

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The numbers quoted in that story simply don't add up. The story I read said the repayments were apparently ?250 a month and it'd been going on for 7 years.

 

?250 * 12 * 7 = ?22,000.

 

Still a lot of money to repay on a couple of hundered quid loan - but a fair way short of the ?88,000 the papers claim she'd paid!

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Maybe the repayment she owed went up as high as that due to missed payments etc., but on disability benefit I doubt she was actually forking out that much each month.

 

Not defending the loan shark, but what the papers are claiming on her behalf doesn't add up either.

 

More generally, I'm not sure where I stand on putting APR caps on interest rates for short term loans, APR is a bit of a blunt tool for that.

 

For example, if I borrow ?100 from a mate for one month and pay him back ?120 it looks like I've paid him 20% interest, but in fact the APR works out at 240%!!

 

APR is only really a useful measure for loans of over a year.

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