A new horror in short term lending

quick quid .co .uk

APR almost 2500%

Meant as a short term loan of a few quid to get you over a tough month.

Even a money lender would do well to beat that.

I hope there is no chance these leaches will be let work in Ireland.

For very short terms (less than 1 month) and small amounts (say less than 100 euro), there is simply no way to commercially lend money to people at reasonable APRs.

For example, 100 euro for 10 days at a typical credit card APR (18%), the interest would be less than 45c.

Even at 100% APR, the company would get less than 2 euro interest. There is no way that this margin would even come close to covering the fixed costs of providing such a loan.

So it's not like companies like this make much profit despite the horrible looking high APR.

I would suggest that rather than an outright ban, that the regulator should only license such operations by limiting their lending to any one individual to less than 600 for at most 3 weeks, say.

Loads of horror stories from the UK where these guys operate. it is all well and good where the borrower can pay these guys back ontime. If the person for some reason is late paying it back the amount owed just sky rockets.

Scary.