Good business if you can get it?

[Gabsgrandad]

Just watching local news on ITV, there was an advert on by a company (the name didn't register) but it was a company that is prepared to lend you money against your car. Wasn't particularly watching but OH suddenly says look at that apr.
You wouldn't guess - but it was 799.9%.
As I say, nice business if you get it.

 

[Whittakerr]

Not a bad rate. If you get a loan from wonga.com they will only charge you a modest 4214%.
I'm sure if you shop around even wonga can be beaten.

 

[RogerL]

Back in the 1970's, and for a long time before, the Moneylender's Act limited the interest rate on unsecured loans to 48% per annum - there were still extortionists around but at least regulated lenders were kept reasonable.
The interest rate limit was dropped as part of de-regulation - parliament should simply reintroduce a rate limit.

 

[JohnGriffiths]

I would not try to defend these moneylenders, and I think people who use them are crazy but APR doesn't give a fair impression of because it is based on a year, and these loans are not intended for long periods. e.g. Would you loan someone you didn't know £100 for a week on the proviso they paid you back £110? Not a great profit in my opinion (if you actual get it back) but the APR is probably in the hundreds of percent, maybe thousands (anyone got a calculator or a working brain?).