Offshore Companies Offering Pay Day Loans At 2,255% APR

Monday, June 30, 2008

As the financial situation continues to worsen for many in the UK, it has been revealed that a Malta based finance company has been offering Pay Day loans to UK residents with an annual interest charge of 2,255%!

The firm in question is Pounds Till Payday and if the reports are correct they are doing very well in the UK and other countries such as the US. While they offer Pay Day loans of up to £1,000, new customers must first take out a £200 to see that they are able to repay the amount due. If ‘successful’ their credit limit will rise to £1,000 and it is all internet based with no telephone calls.

While this may all look very simple, the company have attached a fee of £29.98 to every £100 which a customer borrows. At the end of the maximum 31 day loan period the finance company will automatically take the initial funding plus interest and charges from the customers bank account. At this time the customer will then be free to loan up to £1,000 against their next pay cheque.

One of the main concerns, apart from the interest rate charged, is the fact that the service is open to people as young as 18, who live and work in the UK and have a minimum monthly salary of £333.50 per month paid direct into their bank account. It appears easy credit is making a comeback, but the price you pay is enormous!

Source:http://www.financialadvice.co.uk/news/6/loans/6783