Highway Robery

I just made an enquiry with a company who do short term loans. I discovered that on a $1000 loan they charge 8% interest per month. If you work that out per annum, that's a whopping 96% pa!

I've emailed them a complaint warning that I plan to take this to ASIC and/or ACCC.

How can they get away with charging the equivilant of 96%pa interest?

I don't want to give the company name unless a moderator approves me doing so, but I'm sure that if I am allowed to give the name that it wont surprise anyone.

That's the name of the game chick. Heaven knows why it's allowed

That's the incentive to keep it short term so they get their money back I guess.

thats bad!!!

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That's the name of the game chick. Heaven knows why it's allowed

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That's a terrible game and I don't think it should be allowed! It seems so wrong!

Complete exploitation of those who need it the least.....

I might still get some advice from ASIC or ACCC just to see if it is allowed. But will wait and see if I get a response from the company from the email I sent them. I did put a read receipt on the email.

Oh yeah, they are everywhere.

I don't see what's really wrong with it? It's not hidden is it? They say 8% per month. It's a short term loan. They need to make their money somehow. If it was 8% p.a. they'd only make $6 from a 1 month $1000 loan.