Re: Leaflet through the letterbox - 739.9% APR


"john boyle" <john@xxxxxxxxxxxxxxxxxxxxxx> wrote in message
news:6V$k$LF9nJVEFw1Q@xxxxxxxxxxxxxxxxxxxxxxxxx
Yes, but in this specific example of a very short term loan, I would
say the risk of
a month's loan is only very slightly higher than the risk of a two week loan.

Well we will never know. What I can say though, from my own personal
experience, is that short term overdraft requests were more often than
not followed by an immediate request for an extension, so for smaller
amounts I always marked them for 12 months without telling the client.

Precisely my point!

The chance of the lender getting their money back after a short term loan can be less
than the chance of the lender getting their money back after a longer term loan.

--
Andy


.

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