Sunny loans TV advert

graduate_owner · 4 Oct 2017

Hi all,
I just saw a TV advert for Sunny loans so I thought I would see what their interest rates are. I don't need a loan and if I did I would go to the bank, but -

1277% APR. Wow.

K

Eric The Viking · 4 Oct 2017

That's how they afford the TV advertising.

It's vile isn't it.

E.

marcros · 4 Oct 2017

Apr is only part of the comparison though. I am not sure on this form, but payday loans always have sky high Apr. If you borrowed ten quid from me on Friday and gave it me back on Saturday, buying me a pint to say thanks, the Apr would be huge.

using an online calculator, this would be 14600% APR. But it has only cost you the cost of a pint (assumed to be £4 for the calculation).

Stanleymonkey · 4 Oct 2017

They are horrible companies. I seem to remember reading that the PM was being pushed to take action on them.

Wonga was one of the worst. They all use quite clever advertising to make it seem okay to borrow from them.

They are obliged to show the APR and the rates are always disgustingly high for every type of loan they offer. I really feel for people who genuinely have no other option than these companies.

monkeybiter · 5 Oct 2017

I used to work for Provident, [mods feel free to redact], the total payable on £100 over 12 mths £149, £1000 over 24 mths £1800.
It was even more immoral than my time selling cars, and that's saying something.

Mark A · 5 Oct 2017

I recall Wonga's APR to be something silly like 4000%. If they were to provide very very short term loans (for example two weeks) at a more sensible interest rate it would hardly be worth their time.

Maybe a better question should be why people turn to these sort of companies in the first place.

Edit: An article in the Guardian had Wonga's APR down as 5853%, before the Financial Conduct Authority forced them to drop to a more realistic 1503%!