Consumer Tip: Beware of “Zero Interest” Payday Loans
A new UK-based site, InstantLoansDirect.com, is trying to attract new borrowers by offering so-called 0% interest payday loans. They offer short term loans without interest, but there’s a catch. There is no interest for the first eight days, but after that initial period, there’s a daily fee based on the amount of the loan. This means that the claim that the loans are “interest free” is somewhat misleading. Obviously, the company wouldn’t make any money if they were just giving it out—in fact, they would lose money, as there would be no profit to be gained.
Primary topic: Personal Finance
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