Borrowed from a family member now they want interest!

Rafter

If he has kept his side of the bargain and really has been paying £40 every 2 weeks, then if the APR on the aunts credit card is 20% she has paid about £26 in interest in six months it has taken to repay the debt.

Why doesn't your brother make one more payment of £40 - which will be the equivalent of 40% interest a year on his debt and if she really wants to pursue him for the rest she is an idiot!

R.

~Brock~

Probably a coincidence but........

Matt16v, do/did you have similar user name on other forums? If so, are you a CRX fan?

Matt16v

Yeah i have seen a few and kinda got that feeling too mate.

Reported.

Rafter

zzzLazyDaisy wrote: »

It seems fairly clear that he hasn't kept his side of the bargain - £40 a fortnight would see £480 paid off in about 5 months. OP says it has been two years, and the loan is still not paid off.

OK - point taken - although £480 has been paid now and the bailiffs wouldn't have been called in immediately? Reworking the sums for say an 18 months at 20% would be c. £75 in interest. 2 years at 20% would be £100 - certainly nothing like the £1000 demanded! (which would be an apr of over 400%) - even the worst credit cards don't charge that much!

R.

Matt16v

~Brock~ wrote: »

Probably a coincidence but........

Matt16v, do/did you have similar user name on other forums? If so, are you a CRX fan?

I do yes, but not on any Honda or CRX forums mate. I'm an retro Ford/Renault man myself!

Kay_Peel

Did your brother do as he promised?

Did he pay her £40 per fortnight (roughly £80 per month) when he got his JSA? If he kept his side of the bargain he would have paid off his debt with a bit extra for her trouble after 7 months.

But here we are two years later and he still hasn't repaid the total amount?

Have I read that right?

It sounds to me as though the GF's aunt wants your brother to realise how much hassle and incovenience he has caused. Putting it in monetary terms made him sit up and take notice, didn't it? So her tactic worked! Her good deed was not appreciated - it was taken for granted. She deserves better - a big apology, a bunch of flowers or a box of chocolates would be a start.

I would advise your brother to get at least 200 pounds together as quickly as possible and hand her the cash - £28 towards the debt and the rest of the money for the hassle and inconvenience of doing someone a kindness. She may accept these gestures.

JimmyTheWig

BBB wrote: »

A couple of years ago ... his girlfriends auntie agreed to ... pay £508 on her card and my brother would pay her back at £40 per fortnight
he's paid her £480 and ... she's demanding another £1000 as interest

I think it is fair (have no idea about legality) that he should pay the interest that she is being charged. Maybe she assumed that he would and maybe he assumed that he wouldn't.
But the most unfair thing would be for the aunt to be out of pocket by the deal.

Now, as has already been said he hasn't stuck to the £40 a fortnight payments. If he had of done then it would have been repaid in 6 months and the most interest that would have been charged would have been about £40.
But he hadn't. Worst case scenario is that he's paid all of the £480 recently and she's being charged around 30% interest on her card. In which case £350 is due.
So the £1000 figure is ridiculous, shouldn't possibly be above £350.
And if he's been paying it off regularly over the past 2 years then it should be about half that.
If she's got a more typical credit card interest rate then the figure could almost be halved again.
So I'd say a reasonable amount of interest due is £100.

Two thoughts...
1. Did the aunt suggest the £1000 figure in a text? Might it have been a typo, meant to be £100?
2. Has the aunt only made payments to the card company when the guy has paid her and so been charged for missing payments, etc? This I think would have been out of order.

JimmyTheWig

Nessynoo wrote: »

Could she switch it to a 0% deal to stop the debt increasing

Why should she, in these tough times, suffer a credit check, etc, just because he couldn't keep up the agreed payments?

Dave101t wrote: »

also, never borrow money, MSE tip!

Alternatively, don't drink and drive!

The_White_Horse

how do we know the aunt didn't pay off her credit card bill in full and incurred no interest at all - and is simply on the take.

This whole thing reeks of chav. A drink driver, a girlfriends aunt, who is probably also his counsin's mum's nephew's grandmother or however it works on these estates.

This is why chavs should not be allowed to drive or be entitled to credit.

Anyway, that said, from a legal standing, she has no chance.

blue35_2

The_White_Horse wrote: »

how do we know the aunt didn't pay off her credit card bill in full and incurred no interest at all - and is simply on the take.

This whole thing reeks of chav. A drink driver, a girlfriends aunt, who is probably also his counsin's mum's nephew's grandmother or however it works on these estates.

This is why chavs should not be allowed to drive or be entitled to credit.

Anyway, that said, from a legal standing, she has no chance.

:rotfl::rotfl::rotfl:my god! this made me laugh so much...snobbery is alive and well..