Banks and Interest rates

[In Love With]

Hello all,

I'm interested in knowing what annual interest rate the EU banks charge. The only one I know of is 49.99% and that's the one from Neverdie

Could anyone fill me in on the other banks ?

- thanks -

ILW

 

[Oracle]

Hello all,

I'm interested in knowing what annual interest rate the EU banks charge. The only one I know of is 49.99% and that's the one from Neverdie

Could anyone fill me in on the other banks ?

- thanks -

ILW

The one at New Oxford was showing 99% ish per annum yesterday though this may not be the finalised rate of course.

 

[steffel]

argus was 75% p.a. yesterday, 90 days loan period

 

[Wollongong]

Argos went down to 49,99% today

 

[Hally]

this lvl of interrests is downright silly and i really hope that the fact there is 5 banks will help this with this rate i might as well take an SMS loan and thats allready bad

 

[aridash]

the banks seem to have a problem with perception here. because they are called banks people expect bank like rates. But they arent banks, they are pawnshops. for a pawnshop, dealing in short term loans of 1-3 months, these rates are actually quite reasonable.

just for some perspective.

 

[Wody]

for a pawnshop, dealing in short term loans of 1-3 months, these rates are actually quite reasonable.

Actually, in my country, these rates are so unreasonable,they made laws against them, and here it is illegal to charge more than 18% annual rent at most.

 

[psychnosiz]

Actually, in my country, these rates are so unreasonable,they made laws against them, and here it is illegal to charge more than 18% annual rent at most.

Great, every 3 months we'll have huge ND & banks garage sales of confiscated stuff


To be a "real" bank instead of a loanshark ... what's the interest on saving money ? If we place 1 ped in a bank, which will us give 0,01 pecs after how much time. That is what we need to know.

 

[Tromos]

With these rates, anybody who takes a loan must either be or or

If you are then or

 

[Galadore]

Hello all,

I'm interested in knowing what annual interest rate the EU banks charge. The only one I know of is 49.99% and that's the one from Neverdie

Could anyone fill me in on the other banks ?

- thanks -

ILW

His loan rates were originally 99% over 10 days!! ROFLMAO

These banks are never going to work. Who in their right mind would give an item worth 100 PED to get 90 PED in return, then be forced to pay double that amount to get the item back out of hock?

 

[Grrrrr]

I wonder if the banks will eventually collude with each other and manipulate the interest rate set? So much for competition.

This practice is highly illegal in Australia.

 

[chielsen]

the banks seem to have a problem with perception here. because they are called banks people expect bank like rates. But they arent banks, they are pawnshops. for a pawnshop, dealing in short term loans of 1-3 months, these rates are actually quite reasonable.

just for some perspective.

Uhm yes very reasonable, the 'bank' has no risk at all so they should ask 1o times that of a mortgage which has even more risk involved (see crisis in US, UK etc).

 

[Igorl]

the banks seem to have a problem with perception here. because they are called banks people expect bank like rates. But they arent banks, they are pawnshops. for a pawnshop, dealing in short term loans of 1-3 months, these rates are actually quite reasonable.

just for some perspective.

Yep, banks - shmanks, but I guess they wouldnt have sold them for 440k$ if they called them "quick loan pawnshops" and I suppose there are still ppl that would smell shit if it was labeled "Chanel"


Rates, pawnshoplike and OK for that matter. 50% is obviously what we can expect in the future...

I.

I.

 

[Midori Fairlona]

His loan rates were originally 99% over 10 days!! ROFLMAO

I may be wrong, but 99.99% interest appears to be the default setting for the banks.

Your comment sounds a lot like "The radio was set to full volume when I took it out of the box!! ROFLMAO."

As anyone taking a radio out of a box and dealing with the default settings, so to are the bank owners customising the bank teller settings. Judge them on their current offers, not the factory defaults.

 

[Tromos]

If they don't come up with other intelligent services soon and some rates close to 10-20% (max.) p.a. over the market value of the item, they are doomed to fail imho. How many cases of desperate players that cannot find cheaper funds will use these services?

Even if a few of them, there is absolutely no way the original investments will be recovered with the current set up.

But again, what do I know. Maybe there is a good plan behind

 

[Mikass]

Argus bank had best interest the other day 49.00% and 90 days vs 49.99% and 30 days loan as the other 2 working banks(Anshe, Neverdie).

 

[aridash]

Uhm yes very reasonable, the 'bank' has no risk at all so they should ask 1o times that of a mortgage which has even more risk involved (see crisis in US, UK etc).

you miss the point. they are not banks offering 25 year mortgages on £100k, they are pawn brokers offering 4 week loans on £100. if you go to a real world pawn broker the rate would be similar (in the UK at least). Its not a matter of risk so much as making it worthwhile, theres no point offering 10% interest over 1 month on such small amounts.

and interestingly i read a peice on pawn brokerage irl, and a consumer watchdog said they have very few complaints about them, comparred to several hundred thousand each year for banks. It seems people know what they are involved in and get on with it. will be interesting to see if that is replicated here in EU.

 

[Tromos]

and interestingly i read a peice on pawn brokerage irl, and a consumer watchdog said they have very few complaints about them, comparred to several hundred thousand each year for banks. It seems people know what they are involved in and get on with it. will be interesting to see if that is replicated here in EU.

Makes perfect sense what you are saying overall.

Just one point when comparing RL pawnshops with banks. First, several hundred thousand more ppl use banks so of course more complaints will surface there and second, if somebody was "forced" to go to a pawnshop for any reason, they would probably not be too loud about this if something went wrong.

 

[RedBlack]

Someone needs to put up a guide on how to use the banks - because right now my brain is sore, and I really want to explore this new part of entropia - with confidence, but I can grasp 100% how they work

*Requests a bank guide !*

 

[chielsen]

you miss the point. they are not banks offering 25 year mortgages on £100k, they are pawn brokers offering 4 week loans on £100. if you go to a real world pawn broker the rate would be similar (in the UK at least). Its not a matter of risk so much as making it worthwhile, theres no point offering 10% interest over 1 month on such small amounts.

Yes there is. Since the whole system is automated no setup 'costs' are involved. ND doesn't care if he is loaning out 100x1 ped or 1 x 1000 ped. IRL real people have to do real work. Setting up the deal, making a price for an item etc.. Even banks have to do (much more) work.
That why you can't cancel (for free) a mortgage, but can cancel a pawn here in EU.

and interestingly i read a peice on pawn brokerage irl, and a consumer watchdog said they have very few complaints about them, comparred to several hundred thousand each year for banks. It seems people know what they are involved in and get on with it. will be interesting to see if that is replicated here in EU.

I have not read that, but you you should take into account is that there are 1000 / 10000 more peole have a mortgage/loan than people who have used a pawnbroker.

But Neverdie has already lowered the interest rate dramatically, so it seems reasonable now.

 

[T.J]

Hi all,

I too have great issues with the so called "banks" that as others have already said are in effect nothing more than pawn shops. To be honest one of my major concerns is the lack of transparency when dealing with them in regards to the interest and how it is calculated...

For example...

At first i though ouch 50% intrest, so i borrow 100peds and have to pay back 150 - not good :-(

But as ND explained in his bank thread this is an APR and calculated differently, quoted from his post it goes like this....

Standard loan Period - 21 Days

Annual Percentage rate - 17.99%
appx Monthly Rate - 1.5%
appx Daily Rate - 0.05%

Standard Minimum Charge 50 pec

Example Loans:

Borrow 100 Ped for 1 Day = only 50 pec cost
Borrow 1000 ped for 7 Days = only 3.5 ped cost
Borrow 1000 ped for 1 Day = only 50 pec cost

So why isn't this information displayed showing the daily amount and the theoretical maximum interest if the max loan period is used? It hardly seems right that someone needs to go looking on a forum and then reach for a calculator just to find out.

Taking the above one step further as far as i know in the uk its a legal requirement to disclose at least the "total cost of credit" when doing this type of transaction. If this is the case, how much of a grey area in how many countries are these banks?

Either way its very likely i wont be using this "service" but as you've probably guessed think things need to be much clearer for the customer and dare say if this info was present more people may be tempted to use it.

Cheers
TJ

 

[Kaiser]

You know, this whole thing pisses me off. If you use forum search you will find I have been saying these EXACT things since the first day they announced this retardedness.

Everyone gave me crap "you're a naysayer", "you are negative", "you don't know what you are talking about", yet it seems now every damned player agrees with me and act like they are the first to figure it out.


Anyway this wasn't meant for all of you, just had a bit of a flashback. Honestly, I think anyone who uses a pawnshop really needs to think it through first. In most cases what you repay will be more than it would have cost to sell the item and rebuy it. Especially with that Anshe Bank Entropia, I am sure TONS of people are going to rush to pawn their Imp FAP for 10,000 PED.

 

[Dr Kevorkian]

The only way the pawnshops will make money is if people pawn and never get their items back.With the intrest rates being peanuts the banks will fold in no time unless some real brainiaks lose some real valuable equipment.Banks wont survive just on people taking loans and paying them on time.1 couldnt do it.5 DAMN sure wont be able to do it.Nope.Anshe is the only smart banker in the bunch.She got a load of cash on the stock sale and thats going to prove to be the move of the year.All the rest of the banks will lose the investment.Its not possable with the way it is now to make the investment back.
Black eye for MA unless they come up with a miracle they can "advertise" and save the day.Maby MA is selling out and their liquidating.Nobody knew anything about the banks till they opened.Doesnt sound like a well planed sale to me.

 

[Polynices]

Doesnt sound like a well planed sale to me.

think about this for a second. you are saying that MA sold 5 somethings that are not worth anything for over 400k USD.

sounds like a well-planned sale to me.

anyway, it is up to the bankers to make their bank work. not MA.

 

[Midori Fairlona]

You know, this whole thing pisses me off. If you use forum search you will find I have been saying these EXACT things since the first day they announced this retardedness.

Everyone gave me crap "you're a naysayer", "you are negative", "you don't know what you are talking about", yet it seems now every damned player agrees with me and act like they are the first to figure it out.

That is surprising. From my perspective it seems like 90% of the comments since the banks were first announced have been negative.

You must have been very busy posting all of those comments.

As best as I can identify with the forum search, it appears that Lighterthief was the first to be truly critical of the banking proposal (an interesting reference to loan sharking within 40 minutes of the official announcement). So you will have to accept it if he claims to be the first to have figured it out.

i am sure selling banking licenses will make some good $ for MA

but i dont see how it will add to the entropia experiance at all, maybe i need to see the details a lil to understand it. licensed loan sharking is what it looks like atm

would be nice to add something to improve the gaming experiance tho, oh well, maybe next time

 

[Dr Kevorkian]

think about this for a second. you are saying that MA sold 5 somethings that are not worth anything for over 400k USD.
sounds like a well-planned sale to me.
anyway, it is up to the bankers to make their bank work. not MA.

Well Yea its a great thing for MA...But they need it to work for them to be able to advertise it and get more people.MA needs big ticket items like TI and CND to WORK and then they can shout from the rooftops about how great your opps are too profit.Big ventures that fail...just aint good for what MA wants people to think about the game.

 

[Sarubaboon]

Well Yea its a great thing for MA...But they need it to work for them to be able to advertise it and get more people.MA needs big ticket items like TI and CND to WORK and then they can shout from the rooftops about how great your opps are too profit.Big ventures that fail...just aint good for what MA wants people to think about the game.

I'm not sure the banks will "fail" as such, what is in question really is how long it will take for them to recover their interest.... I mean, RL investments take 2-5 years to break even, and in the past ppl in EU have recovered their investment more quickly than that (treasure island, etc) suggesting that the original prize was quite low.... this could possibly mean (maybe, too early to know yet) that ppl overpaid for the banks.... then again, maybe they didn't... when CND first sold some ppl thought it was too much money to pay.... so, only time will tell really.... but i doubt they banks will "fail" as such....