Forum Topic

payday loans

We keep hearing how hard it is for businesses to borrow money. If this is true, where do pay day loan companies get the capital to lend at criminal interest rate.Are some of these companies actually subsidary companies of the major banks ?.

Keith Mason ● 4675d4 Comments

That does sound quite a good rate for a short term unsecured loan Gerry (though I am a bit out of touch with respect to these kinds of loans these days).

Tony Colliver ● 4668d

I have had some experience of a friend who became involved in debt with these companies. The profits are enormous.My friend got into trouble because the unpaid loan rapidly became so big it was unpayable. We are still waiting for regulation in this industry. Dosh attracts dosh. Lending money to these firms makes sense if you don't care. You don't need the banks. Only real businesses need banks.Does that help?

Arthur Breens ● 4670d

Speaking of personal loans, is the current offer from Mark & Spencer at 5%APR over 12 to 60 months the best one available?

Gerry Tan ● 4670d

Money laundering for some according to the reports about those which have been shut down.At those punitive interest rates you don't need many 'mugs' to quickly expand your working capital.As to being subsidiaries of major banks; the banks hate the retail market and probably wouldn't, even with all of the muck and hate, attributed to them, want the adverse publicity.

Nigel Brooks ● 4675d