An email titled “Little Loans” offering cash within 15 minutes.
“Get an instant loan decision today up to £2,500”
This is from uk-prizes.com which is not a money lender.
They are a credit broker meaning they find “victims” willing to pay extortionate interest rates to get quick cash and pass their information onto a lender and they get commission from the lender if a credit agreement is taken out by the “victim”.
The legal status of uk-prizes is spelled out in the message and it is a registered trading name of Digitonomy in Cheshire.
I did say extortionate interest rates.
The message says their representative APR is 278% meaning if you borrow £1,000 for a year then you have to pay back almost £4,000.
Sadly this is quite legal and even if a fair number of people can never pay back their loan, the company still makes huge profits on those who do.
A second email arrived the same day from Cashflex.co.uk which again is a trading name of Digitonomy and offers quick cash. This time they claim their representative APR is only 99.9% but further down in the email does say they charge up to 278% APR
This really should be criminal.
Never take money from these kinds of companies.
Do enter your email address and click on the subscribe button on top right to keep up to date with new posts. Thanks.
