Angry at advert

8m32s

8m32s

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Not visited this forum before but can't believe what I've just seen.... Ok I'll admit I was watching Jeremy Kyle and during the adverts I saw the following advert. It's for short term loans until payday at the cost of over 2300 APR.... Now that is insane and certainly a brick in the wall (a breeze block I should add) as to why this country and the West in general is in a bad financial situation at the moment. Our debt based economy is an organic entity and it's seriously getting out of control!

I really feel sorry for the people who take these loans with optimistic intentions and then certain life factors can play a part and then they are screwed.

Also how imoral for ITV to show such an advert. TV has a massive social responsibility, and no doubt the company involved offered the money that talks.

Needed to get this off of my chest as it's really angered me. I'm feed up with too many people in this world screwing over people left right and centre, and I'm worried about where it's all going to end! :bang:
 
It's 2300 APR because that's how much you'd pay if the loan was for a year.
 
8m32s said:
Not visited this forum before but can't believe what I've just seen.... Ok I'll admit I was watching Jeremy Kyle and during the adverts I saw the following advert. It's for short term loans until payday at the cost of over 2300 APR.... Now that is insane and certainly a brick in the wall (a breeze block I should add) as to why this country and the West in general is in a bad financial situation at the moment. Our debt based economy is an organic entity and it's seriously getting out of control!

I really feel sorry for the people who take these loans with optimistic intentions and then certain life factors can play a part and then they are screwed.

Also how imoral for ITV to show such an advert. TV has a massive social responsibility, and no doubt the company involved offered the money that talks.

Needed to get this off of my chest as it's really angered me. I'm feed up with too many people in this world screwing over people left right and centre, and I'm worried about where it's all going to end! :bang:
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Fully agree I feel really sorry for the people who have to take out these loans they get screwed for every last penny and more if these legal thieves can get it
Bob
 
Yeah I understand that, but still think of how much interest that is, even for having the loan for a month say (It's actually just over 30%). I know the premise of the advert is a loan until payday, but **** happens. It's inevitable that some people taking this loan will be paying it back for a long while afterwards. Some may say these people are high risk, but with any loan that runs into trouble, all possecions owned by the individual would be at risk of being lost. It's blatent taking advatage of someone, to a level that is unrealistic and certainly immoral.
 
I looked at this site when I firsst saw the ad. Are the loans not something silly like 7 days max?
 
Its peoples choice. The reason why they go for these loans is because they are such a bad risk and to be fair to that company, probably get loads of bad debts. Its simple business.
 
ka$h said:
I looked at this site when I firsst saw the ad. Are the loans not something silly like 7 days max?
Click to expand...

I looked at it as well and I think most are short-term (7 days to a month). The industry standard is to calculate based on APR, so they have to put that on the adverts which makes it sound alot worse than it is. Still not a great idea methinks.
 
8m32s said:
It's for short term loans until payday at the cost of over 2300 APR....
Click to expand...

Yes, they quote an Annual PR on a loan with a term of a few days. If they charged 30% interest, how much interest would that be on £100 for 3 days? (21.5 pence according to my logarithms).

Given the risk profile of people that take out such loans, anyone making only 21p on a £100 risk is completely nuts. One default in every 500 loans would wipe out your profit before operating costs.

I'm interested in your solution - would you increase the term ot reduce the APR? Would you ban short term loans entirely, so that they could only be obtained from illegal unlicensed lenders?
 
I must admit I didn't realise these loans are for a mamimum of say 7 days. But what about people who carry the payments over this initial time. These people probably are high risk but how many defaults are there on a loan backed up probably by close to a minimum wage. I mean the money lost on defaults must be very dissproportionate to what the company feel they need to charge everyone to cover this. I get what APR represents and how it's used. My concern is the people who allow these loans to run. Some people are very bad with money and we shouldn't let them get in too much of a pickle.
 
it's right about the bad debt / high risk.. happens all the time.. the people who actually do settle their loans are paying for those that don't.
 
Well if people think they wont be able to repay it,they shouldnt borrow the money.It's clear what the APR is etc and 9/10 the loan will be for some frivolous expense knowing the kind of people who actually go for this kind of loan,not exactly a loan to buy food/or other necessities of life.So I guess it's fair play to the company to charge what they want......
 
its an anual loan so the number is way bigger than normal because they make some intrest over a week

pay it back in a week and its not too bad, pay late and it adds up like hell
 
There will always be people stupid enough, or vulnerable enough to take on these loans.
There will always be people greedy enough to provide them, unless legislation bans it.
As for ITV.
nly two things interest TV channels.
Ratings and revenue.
 
Desparate people do desparate things
 
i 'know' a lawyer who works solely full time for a pay day loan company, he's stretched as it is recovering the un-paid money as so so many don't pay it back
 
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