Highway Robery

[danniellabella]

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.

[Lulu]

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

[Liz]

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

[squidipa]

thats bad!!!

[danniellabella]

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

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

[Lulu]

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

[danniellabella]

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.

[Lulu]

Oh yeah, they are everywhere.

[Liz]

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.