2,356% payday loan interest just isn't GOOD
I was watching TV the other day and saw an advert for a 'payday' lender called quickquid.co.uk. This is a business which lends cash-strapped consumers short-term loans - days rather than months and years - to enable them to keep cash in their current accounts before pay-day.This may be a good idea helping a niche group of consumers but nothing could be further from the truth.Quickquid.co.uk's loans attract a typical annual percentage rate of interest (UK) of a staggering 2,356%. That means that - for every £100 pounds a consumer borrows - the cost of borrowing could be £25 over, let's say, ten days.This is just plain wrong. An example of loan-sharking that serves nobody's interests but Greed's. It's cynically targeted at low-income households who are least equipped to handle high-interest debts.It angers me that interest rates like this are being levied on consumers who's last port of call to stay warm, washed and fed are businesses whose only interest is profit. So angry, in fact, that I set up a Facebook Group, search '2356%', Twitter stream - http://www.twitter.com/2356percent and Posterous site - http://2356percent.co.uk. If you're a UK reader of GOOD, please join in and let's see if we can do some good.