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The interest on $35 is only $4 since it is a flat rate not a reoccurring rate.

Right. It's a fixed term loan. Not revolving credit. These 2 loans are mathematically equivalent:

$35 at 0% APR, $4 fees, 6 weeks fixed term

$35 at 123% APR, $0 fees, 6 weeks fixed term

You could argue the high APR loan is worse because interest will be compounding if you miss your payments. But I'm guessing the Zip loan also has late payment fees.

But people are probably going to use it for larger amounts where that flat fee would equal a much lower apr.

An APR much lower than 123% is still outrageously high for purchases of $100 or $200 - but in any case, the browser should not get involved in this at all.

Sure, and generally the shorter the term the larger the APR. Makes it sound a lot scarier, huh?

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