Trouble with a Payday Loan Provider

LadBroke

Jeff_Bridges_hair wrote: »

Yes they have every right to charge you for a late payment and interest on top of that - Its in your T&Cs when you apply for a loan from them.

What you should have done is used the roll over feature where they would have taken £25 then your loan would roll over to the next month with no interest added until you could then afford to pay it all back.

Where does this figure of £25 come from ? The rollover would have been much higher than that, remember the original loan was £300 !

opinions4u

People have no choice whether they want one or not

That is nonsense.

Two words of wisdom to the rest of the world:

1) Never go near one of these companies, even if it is just "until pay day".
2) The unexpected will always happen. A tooth will need replacing with a crown. A tyre will burst. A washing machine will break down. The wife will nag you to go out when you're really skint because you haven't taken her anywhere for weeks!

You might not know when, but it will happen. So build up a contingency fund to cover the unexpected and replenish it if you ever have to use it. It isn't rocket science.

michael1983l

opinions4u wrote: »

That is nonsense.

Two words of wisdom to the rest of the world:

1) Never go near one of these companies, even if it is just "until pay day".
2) The unexpected will always happen. A tooth will need replacing with a crown. A tyre will burst. A washing machine will break down. The wife will nag you to go out when you're really skint because you haven't taken her anywhere for weeks!

You might not know when, but it will happen. So build up a contingency fund to cover the unexpected and replenish it if you ever have to use it. It isn't rocket science.

Thanks for the advice, however you seem to misunderstand the general catchment these companies aim for. That is the person who does not have enough spare income to create a contingency fund.

They target people who should already be contacting the debt advice lines as their budget is generally right on the margin or already in negative output. These companies make a final squeeze out of their customers just before they hit their IVA/DMP/Bankrupsy. These people are already in a desperate situation and have no place to turn and the only way they will get food on the table is to see these loan companies.

These are exactly the reason they should be outlawed. Please do not state that some people use them responsibly to me as I have heard it all before.

Jeff_Bridges_hair

LadBroke wrote: »

Where does this figure of £25 come from ? The rollover would have been much higher than that, remember the original loan was £300 !

Well what ever the roll over would have been its never normally from what i have seen on these companies to be more then 25 - 30 pounds. Thats why i said it.

michael1983l

Jeff_Bridges_hair wrote: »

Well what ever the roll over would have been its never normally from what i have seen on these companies to be more then 25 - 30 pounds. Thats why i said it.

The rollover charge is generally one months interest per £100 outstanding. So normally multiples of £25

Borrow £300 for 3 months and you will repay £300 plus £225 interest

I cant believe they can get away with it

paybybuttons

Ok i was thinking of taking one of these pay day loans out the other day, and this is the offer that SWift Money sent me:

KEY FINANCIAL INFORMATION
Amount of Credit: £ 125.00 (including a transfer fee of £25)
Duration of Agreement: 11 days
Total Amount Payable: £ 162.50 to be repaid in a single payment on 28/09/2010 (the Payment Date)
Annual Percentage Rate: 607247.46%
OTHER FINANCIAL INFORMATION
Total Charge For Credit: £ 37.50 (comprising interest of £ 37.50)
Interest is charged at the rate of 996.14% per annum, pre-computed and applied on the date of this agreement.
Please Note: The total charge for credit includes interest applied to the Transfer Fee.

OK SO BARING IN MIND THE LOAN WAS FOR 125, I WOULD RECIEVE 100 OF THT AND THEY WERE CHARGING ME 25 QUID JUST FOR THE PRIVILIGE OF PUTTING IT INTO MY ACCOUNT FOR ME!! I WAS LUCKY IN THE END AS SOMEONE WAS ABLE TO LEND ME SOME CASH UNTIL I GET PAID. I FELL SHORT THIS MONTH AS MY SISTER HAS HAD TO HAVE EMERGENCY OPERATION RELATING TO HER BREAST CANCER AND I HAD TO GET MY MUM ON A FLIGHT OVER TO OZ! ALL I AM SAYING IS THAT EVERYONES STORY IS DIFFERENT AND ALTHOUGH WE SHOULDNT GET OURSELVES IN WITH THESE PEOPLE, I WOULD HAVE GONE TO ANY LENGTH TO GET MY MUM OVER TO OZ


apologies for the caps

Peelerfart

So then may I ask why the OP says that they should be outlawed ?,when no matter how immoral they may,or may not be, they do unfortunately, have a place

callistris

Peelerfart wrote: »

So then may I ask why the OP says that they should be outlawed ?,when no matter how immoral they may,or may not be, they do unfortunately, have a place

I agree they do have a place, as they have been handy for me on a few occasions, although I have only ever borrowed what i needed and always paid back in full when I promised;)

paybybuttons

Peelerfart wrote: »

So then may I ask why the OP says that they should be outlawed ?,when no matter how immoral they may,or may not be, they do unfortunately, have a place

i think he simply saying that 6000% APR is perhaps as my grandad would say ripping the a$se out if it!! these people deserve their place in a Dickens Novel, not 21st Century society, preying on the needy who will agree to any rate of interest as they need the mullah so desperatly

paybybuttons

its does seem quite snooty on here that everyone looks down their nose at people who ask for help when they have got in a jam with these lenders! everyone sitting up high looking down assuming that everyone that has took out a pay day loan has spent the money on a jazz mag some crack and a box of tea bags