Pay Day, No Pay

I have used very successfully a pre paid Mastercard Payment card now for over three years. It is a good way to save money in a way that allows you to use it like a credit card. Online purchases, Hotel and Car hire purchases etc. Some of these things a Debit Card can't be used sometimes.

I use My Cash Plus, it's bben a very good card and helped me budget on hildays. They have recently introduce the "iAdvance". This is a service similar to Wonga.com and the like. Out of interest, I looked how much it would cost to borrow £50 over 10 days. Imagine my surprise when I got the following message.

"KEY FINANCIAL INFORMATION


Amount of Credit: £50.00

Total Amount Payable: £61.00

Term of the Agreement: 11 days

Repayments: You will pay to us £61.00 in one payment on the 03/03/2012. We will collect this payment by debiting your cashplus gold card account that you have registered with us on the date stated.

APR: 42242%

OTHER FINANCIAL INFORMATION

Interest Charged Per Day Per £100: £2.00

Total Charge for Credit: £11.00

Rate of Interest: 730.00% per annum (fixed)

The interest charges have been calculated by applying the Rate of Interest shown above to the Amount of Credit assuming the duration of the Agreement is as stated under the heading Key Financial Information.

If you wish to settle the loan agreement before the agreed collection date please call customer services".

I could not believe the interest rate! Definately be giving that service a miss...