APR, wrong way to judge PDLs
January 27, 2010 | industry, international | Comments (0)We normally don’t comment on company news releases, but we thought this one out of Britain makes good points about the payday lending service:
Although they are often manipulated by lenders to look more attractive than they actually are, APR can be a good measurement for comparing long-term loans or for comparing loans of a similar type, but they are not suitable for comparing short-term loans such as payday loans.
Ohad Hessel, Marketing Manager at PaydayBank says that while the APR on a typical payday loan can look very expensive at first glance, this yearly calculation is the wrong way to compare them to other types of loan.
” APR is the wrong way to judge payday loans because they are short term loans for relatively small amounts of money, designed to be repaid quickly. “
Comments»
No comments yet.