£500 PayDay Loan - Very worried;

SimIsOnTheUp

Hiya,

Last Saturday I took out a £500 loan from The Money Shop (one of their 'Cash 'Til PayDay loans where you write out 5 x £100 cheques, and they then present them a month later).

Money Shop charged me £15.99 per cheque, and so gave me back £84.01 per £100 cheque.

So, they gave me back £420.05 after taking their charges (what the hell was I thinking?)

I've been quite ill with alcoholism, anxiety and severe depression, and should never have taken out the loan as I am not working (am currently on ESA), and I'm worried I won't be able to pay it back in full by next month.

This is the second time I've done this within the space of two months, and I'm really wanting to put it right and repay it, before things get out of hand.

I have £250 of the money left, however I need £50 for bills so I will have £200 later today to give back to them.

My query is regarding what Money Shop's procedure is if / when they 'roll over' the remainder to the next month.

So, I go in to the branch tomorrow and pay them back the £200, leaving £300 owing.

Will they 'roll over' the £300 for another month for sure, or is that at their own discretion?

My main worry is re their fees / interest.

Does anyone know how much they would charge to hold off claiming the £300 for a further month?

I remember reading that they charge somewhere in the region of £18 for each cheque that is 'rolled over' per month. Is this all they charge, or is there interest on top of this? (I have a bad feeling that there will be).

I am determined to repay this, and sort it out once and for all. It would just be very helpful if someone on here could help with info regarding their charges / interest, and how it's applied.

The other strange thing, is that this last time (second and last time ever) I took out this loan with them, they didn't provide me with a signed credit agreement at all. They gave me a print out of the cheque amounts / dates to be cashed, but that was it.

I'm assuming that this may be the norm though, seeing as I'd already had a loan from them once before.

Many Thanks,

Sim.

(Also posted on 'Loans' board)

Fiddlestick

SimIsOnTheUp wrote: »

So, I go in to the branch tomorrow and pay them back the £200, leaving £300 owing.

Will they 'roll over' the £300 for another month for sure, or is that at their own discretion?

My main worry is re their fees / interest.

Does anyone know how much they would charge to hold off claiming the £300 for a further month?

They would generally roll over at the same rate.

If you paid £15.99 per £100 before and want to roll over 3x£100, then you would pay them 3x£15.99, so £47.97.

SimIsOnTheUp

Thanks for the info.

Do you know if they always agree to 'roll over' the cheques until the next month, or is it discretionary?

Also, would that be the only charge - an extra £15.99 per cheque x 3 = £47.97 or are there any further charges on top?

Many Thanks.

Fiddlestick

SimIsOnTheUp wrote: »

Thanks for the info.

Do you know if they always agree to 'roll over' the cheques until the next month, or is it discretionary?

Also, would that be the only charge - an extra £15.99 per cheque x 3 = £47.97 or are there any further charges on top?

I've never used Moneyshop, but I've used one of their competitors.

The particular place I've used lets you roll them over so long as at least 1 cheque goes to the bank every 6 months.

That was a while back, so some things may have changed.

Maybe call them and ask?

bottleofred

Hi sim,

As fiddlesticks has said, they will charge the £15.99 for each cheque you rollover. I dealt with moneyshop for a long time and thankfully eventually broke the cycle. It is a high interest rate and afterwards you wonder what on earth you were doing, but I was desperate for the cash and unfortunately this is what companies like this rely on to make money.

SimIsOnTheUp

Thanks for the info bottleofred.

So, MS will ask for the £15.99?

I read here - https://forums.moneysavingexpert.com/discussion/2643529 - that it'll be £17.98?

Either way, will there be no other charges other than the 'roll over charge' per cheque do you know?

I am determined to try and repay this asap.

Thanks again,

Sim.