Loans firm 'charging 437% interest'

10/11/2008

One UK loans provider is charging customers repayment rates of 437 per cent, it has been revealed.

An investigation from the News of the World newspaper found the unusually high APR, offered by Log Book Loans.

The firm's rate would oblige just under £4,200 to be repaid on an initial loan of £1,500 over eighteen months.

Its advertising targets people who want to take out credit to buy Christmas presents for their family - and boasts that their loans are "quick and easy" to apply for.

Contacted by the newspaper, head of Log Book Loans Ian Shearer said: "I'm simply the owner but I have nothing more to say."

Director Barry Pilgrim added: "We are fully licensed and regulated. The rates may seem high, but if you check on our website you will see we are fair.

"Most people take these loans as a short-term fix."

Tags; Debt Management and Banking, Credit Card Lifestyle,

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