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Bank annual interest rates skyrocketed

Caiman

Caiman

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Nov 11, 2006
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GER
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Antipodean Army (ret.)
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Raoul Caiman Lefutee
Bank Neverdie and Anshe Bank were both down to 14.99% APR ... now take a look at that: 99.9% and 99.1% APR :holyshit:



 
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What makes you think that the banks weren't as good an investment as they thought it would be?
 
thats why you pay off dept early :D

anyways, i still dont get the *bank* system, you exchange your item for ped, normally half what you would get for selling it. then you pay interest on the amount or loose the item. i would rather sell the item to a person/auction for full price and then buy back latter if/when peds are available again. i do this and will continue doing this until i have enough ped to never worry about costs. at which point i will own EU!!!!!!!!!! and bill gates will be my doorman!:cool:
 
fluKe said:
What makes you think that the banks weren't as good an investment as they thought it would be?
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Erm? I was just trying to tell people to pay attention to the fine print, because the conditions for new loans went from 14.99% APR to 99.1%/99.9% APR overnight. Nothing more, nothing less.
 
Whats wrong with that? I offer higher rates return :D Maybe i should lower them to match the banks +10% yearly.


LoL if my investors are reading this, dw, for now i wont, im doing fine.
 
Richard Devil said:
Whats wrong with that? I offer higher rates return :D Maybe i should lower them to match the banks +10% yearly.
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The interest rate in the screenshots is what people have to pay for a secured loan, not what they get for a savings account. And it obviously is now 99+%.
 
dont worry it will fall again...
Go watch other bank.. they probably agree for lower.

And if all bank go for 99% then they all are stupid,and noone of them did understand how make money with their system yet.
 
imo 15% was never a realistic interest rate for the banks to make money. given the intended short term nature of the loans, a much higher rate will work better for the owners in the longer term.
 
Caiman said:
Erm? I was just trying to tell people to pay attention to the fine print, because the conditions for new loans went from 14.99% APR to 99.1%/99.9% APR overnight. Nothing more, nothing less.
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If both banks changed overnight, could this be an issue of a setting being reset by the server? Or has there been an announcement by the respective owners that they are going to change their rates? :scratch2:

Edit: I see that Neverdie announced a change to his rates yesterday.
 
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Maybe they were doing too good - couldnt make up the demand so they decided to make it more expencive :)

In that case I was really really wrong about my comments on banks... and how they were a bad investment...

I.
 
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Midori Fairlona said:
If both banks changed overnight, could this be an issue of a setting being reset by the server?
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Or the first sign of a "bank cartel" similar to the pilot one.... :D


TBH I can see why, there was no way they could recoup their investment based on the lower rates they were offering.
 
Someone correct me if i'm wrong, but isnt there a swedish law that states that banks cannot change their interest rates withoug notifying their clients, before a change can be made?
 
But they are not "banks". I am also fascinated to see if they comply with the laws of the country of their management though:rolleyes:
 
Dunn said:
Someone correct me if i'm wrong, but isnt there a swedish law that states that banks cannot change their interest rates withoug notifying their clients, before a change can be made?
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Isn't ND in america? He wouldn't have to follow those laws...besides its a virtual world, there not enforcing taxation either.
 
haha, good one, I used 2 times banks till now, but if they turn like that I surely not touch em again :)
 
Dunn said:
Someone correct me if i'm wrong, but isnt there a swedish law that states that banks cannot change their interest rates withoug notifying their clients, before a change can be made?
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There is a point in the contract that bank keeps the right to change the interest rates at their will, but they will notify client about it 30 days before it may occur. In this case Avatar and bank have no contract at all, so avatar accepts the terms as is. And even if the bank changes the rates, it does not affect any loans allready issued.
 
Elandil has touched on an important point there...

Surely interest rate hikes do not affect Existing loans...

I have several Items I've Loaned to ND... we agreed the price at the time.. 14.99%. I'd better not discover that he can up the price on me when we already have a contract...

If i'd gone there and found 99% apr I woulda told his teller to lump it.
 
Chopper said:
Elandil has touched on an important point there...

Surely interest rate hikes do not affect Existing loans...

I have several Items I've Loaned to ND... we agreed the price at the time.. 14.99%. I'd better not discover that he can up the price on me when we already have a contract...

If i'd gone there and found 99% apr I woulda told his teller to lump it.
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I have 2 loans with BND right now - going to login right now and check the deeds to make sure they still reflect the 14.99% rate I agreed to.

Edit: My bad - I guess I paid them both off already - thankfully!!
 
Usury?

Isn't that much interest considered illegal in many places and actually called usury?
 
or it is a bug or it is plain

GREED

:laugh:
 
I was able to use the banks to profit quickly and swiftly at the low APR. With the new APR, time pressure is added, and what was once profitable is no longer true.

Also, holidays are in, so if anyone wants to pawn their stuff to get some play cash, they will pay the fee.

PLAY FREE
 
:laugh:

Price collusion at its finest...

Highly illegal in my country.

Reccent cases of price collusion saw two corporations fined AUD$71m and AUD$36m respectfully.

Greedy bastards!
 
This interest rate is brought to you by New Improved Garcen Lubricant!

Remember kids, if it looks like larceny, better get Garceny!

AG
 
Grrrrr said:
:laugh:

Price collusion at its finest...
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you dont have to be competitive and under cut your rival, as long as you are not uncompetitive. and in some circumstances you may take the risk of pricing higher, expecting the others to follow because you know they are in the same boat as you. i think this is far more to do with the economics of the banks than greed.
 
Damn that sucks, hmm I need to check out my deeds for the loans I took out last week. They were at 14.99% when I took them out and have about 1500 ped in loans, that would be a huge difference if it changed on me and I am going to have to send an angry email to Anshe if that's the case.:mad:
 
cevaliao said:
Damn that sucks, hmm I need to check out my deeds for the loans I took out last week. They were at 14.99% when I took them out and have about 1500 ped in loans, that would be a huge difference if it changed on me and I am going to have to send an angry email to Anshe if that's the case.:mad:
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As far as I know, loan rates and payouts are set at loan time, so you are safe. For example, Anshe was buying Oil for 105%, while you could buy it for less from the market. Getting a loan, and letting it expire actually meant making a profit.

Also, if they changed the APR, I hope they updates some of those mineral prices, I need to mine faster...
 
Argus bank is at 35%

Twin peaks is closed..

Where is the last bank ?


If any bank owner need help , i would be happy to offer my service :D

If they dont fight on price... they will have to fight with the size of the loan for an item , and so need for sure expertise.
Also , they still seems to total fail the point with bank
 
Well the Argus Bank is at like 30% but even with that these rates are annual and not compounded daily like most banks and credit cards--most terms at these banks are only 30 days, Argus again wins here with 120 day terms if you choose to go that long. Argus also seems to be offering high +tt values at least much higher than the others. I used 3 different banks so far for different things and basically it is the terms that separate them apart since there is no real customer service involved at this point. Now granted when I used them it was at 14.99% so I would have to think long and hard about using the 90+% terms--but they do have a hefty monthly cost and big investment to return to there owners so time will tell how the bank owners work it all out.
 
I've used the banks a few times now. Last time I went for a loan, the amount I received from my item (the tt+ value) dropped in half at all the banks even though the market value remained the same. That there stopped me from taking a loan. Now with skyrocketing interest rates, I think I'll just use my Credit Card :rolleyes:
 
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