Danger of – Pay day loans / cash advance loans

I heard a radio advert for cash advance loans the other day. I thought I’d misheard the APR but no Typical 2278% APR!. These should not be allowed. These are likely to increase debt and cause an even greater downward spiral of debt. There should be laws against that exploitation of those that are clearly not in a position to afford those kind of fees.

I notice that there has been an ASA Adjudication which resulted in a ban of their TV advert, but it seams that saying the typical APR really quickly allows them to use radio adverts.

If anyone is tempted by these kind of places just don’t. It won’t help, it will just make the situation far worse the next time you get close to pay day. Instead discuss your situation with a proper bank or Citizens Advice Bureau never with these loan sharks.

Please note that this may apply to adverts on the Internet. If they offer loans then make sure you look at how much the loan will cost including the APR (Annual percentage rate).