The payday lender that charged 16,734,509.4% - Capital One Finance

[citizenB]

Well if this doesnt make people sit up and take notice and avoid these companies like the plague - nothing will

 

 

 

Most of us know that payday loans can be a

horrifically expensive way to borrow money, with the likes of Wonga.com charging

interest rates of 4,000% APR or more. But if you thought that was as bad as it

gets, take a look at the loan agreement sent to Adam Richardson and the stated

APR: a mind-boggling 16,734,509.4%.

 

 

That is not a misprint. His contract really does state that the annualised

interest rate on his loan is in excess of 16 million per cent.

 

Richardson, 25, freely admits he was desperate for cash at the time to fund

his "excessive" alcohol and cannabis usage. Having exhausted other sources of

money, he went online and took out an £80 loan from a company called Capital

Finance One (not to be confused with credit card giant Capital One).

 

Read the full horror story : - http://www.guardian.co.uk/money/2013/mar/16/payday-lender?CMP=twt_gu

Edited March 17, 2013 by citizenB

[renegadeimp]

Not surprising that they have refused to explain themselves.

[sillygirl1]

I wonder how many others who have become bankrupt under the age of 30 were crippled by these unsecured loan sharks.

 

I'm glad I got out of the trap fairly quickly and have not gone back to it - despite the texts that come through on a Friday at 30pm onwards asking if I text back my debit card I can have xxx in my account in 15 minutes.

 

I forward all spam messages to my phone providers spam line including ones from a certain DCA who have been pestering.