This week, I’ve been doing a few interview on the forthcoming Kent Credit Union. It’s taken a while to pull together the right business plan, the right people to get it off the ground, and the licence approval from the Financial Services Authority will be a couple of weeks yet. But by November, Kent Savers will be up and running, providing a savings option for those who want it, and loans which will provide an alternative to doorstep loan sharks.
One or two people have questioned the interest rate offered by Kent Savers – at 27% APR, it’s the same as most other credit unions.
When we checked out the options available to those with little or no security, the range of APR offered ranged from a hefty 299% to a whopping 899% APR.
But I’ve just seen a television advertisement from a company called “QuickQuid” – they offer loans to bridge until your next payday. If your application is approved before 2.30pm you’ll get the money the same day. And the interest rate?
A mere 2356%.