1. It would be great if you could give an example of what the fees look like. For instance, borrowing £100 for 30 days costs £5 or something. Sounds like I have to sign up and load money into the app to get a sense of how expensive it would be.
2. The nicknames for common banking terms may cause more confusion than they're worth :/ I had to make a mental map between "pocket" = account, "bit" = loan, "superpowers" = also loan? before I could understand what I was reading.
Good luck!
https://news.ycombinator.com/item?id=18075506
If the above is still correct, interest is charged at 1% per month, based on the credit limit, not the outstanding amount. So the APR might be something between 12.7% (if you borrow the maximum) and ~infinity (if you have a non-negligible limit, but borrow only 0.01 GBP).
https://register.fca.org.uk/shpo_nosearchresultpage?mainsear...
You request 'superpowers' to multiply the amount of money you have (a secured loan), and they advise what the monthly fee is and the repayment terms up front.
It's no different to any other secured loan, they just focus on presenting the actual £ amounts rather than % AERs, which is probably clearer for the vast majority of people.
It appears to be an unsecured loan. A secured loan is one where the lender takes a lien on (or physical possession of) collateral that can be repossessed or liquidated if the borrower fails to pay back.
"presenting the actual £ amounts rather than % AERs, which is probably clearer for the vast majority of people."
The consumer credit regulators don't agree with you[0]. In the UK, any promotion/solicitation for consumer credit that includes a cost of credit (e.g. the amount of a fee) must also show the APR. The intent of these regulations is to allow offers from different lenders to be compared on a standard measure.
Signed up for sure!
