Putting an APR on a pay day loan is very unfair. Why have an APR when you can only borrow the money for 30 days.
When I looked at Wonga.com I was impressed, you can borrow ?ú400 for around ?ú30.
Compare that to ?ú25-50 if you go overdrawn at the bank, plus letters to tell you you're overdrawn, plus interest etc etc.
If its a week from pay day and you're bathroom floods, what are you going to do?
This is a relatively cheap way of getting short term cash without getting fudged by your bank, I welcome competition.
I've looked into being a lenedr with the likes of Zopa.com:
http://uk.zopa.com/ZopaWeb/public/lending/lending-at-zopa.html
This is basically social lending, you can decide the amount and risk profile of the people you want to lend to, (the higher the risk the higher the interest) and away you go!! You can get 8%+ for your money and the default rates are very low as the loans are properly credit checked etc.
Again.....if the banks aren't lending why not lend to eachother as a society? People who need credit get it and people getting a brick return on their money with the banks can get above inflation returns.
These things are not as they seem.