lending stream - how can this be legal?

ambertansy

Hi

Have taken a loan with lending stream but am confused as i thought that the 6 months payments would be for the money borrowed plus the £30 per £100 borrowed. but they are charging interst monthly and the payments in total are triple what i though they would be - they don't this anywhere so do i have cause for complaint?

Clive_Woody

ambertansy wrote: »

Hi

Have taken a loan with lending stream but am confused as i thought that the 6 months payments would be for the money borrowed plus the £30 per £100 borrowed. but they are charging interst monthly and the payments in total are triple what i though they would be - they don't this anywhere so do i have cause for complaint?

Was this not detailed in the terms and conditions that you read through before you accepted the loan?

sazzybum

I've had dealings with them, and Clive's right. They send you the terms etc and you have to accept them-if you want the loan, or decline them if you don't. They detail every months payment for 6 months. If you accepted without reading it- then it's your own fault. I didn't have any problem with them at all.

And yes- it's legal.

jamesd

I've looked at their site and it seems clear enough:

1. Representative example quoting 3043.8% APR. Look at the way the monthly payments vary in their representative example, with the second month much higher than the rest.
2. Interest Fee: 30% per month (£30 per £100)

It appears that you're being charged the interest rate that you agreed to when you signed up for this loan.

You have a legal right to repay the loan and pay no more than two months of extra interest beyond the point at which you do that.

If you want a cheaper but still expensive deal, try visiting Lenders Compared. That's the site set up by the Office of Fair Trading after its investigation into the doorstep lending industry and typical rates there are in the 400-500% range but there are often some at under 200%. If you can't find a better option, that's at least better than what you have now. Provided you have at least three months of the loan still to pay it'll probably be cheaper to take out a new loan to repay early. Not guaranteed, it depends on the interest rate and time remaining, it's just an approximation, you'd have to check the specific deals and compare.

ihateyes

ambertansy wrote: »

Hi

Have taken a loan with lending stream but am confused as i thought that the 6 months payments would be for the money borrowed plus the £30 per £100 borrowed. but they are charging interst monthly and the payments in total are triple what i though they would be - they don't this anywhere so do i have cause for complaint?

they also ring you, especially a first time lender, to confirm your bank details, and monthly payment schedule. You said yes cos you needed the money, but now as the repayments start, question the legality

iolanthe07

I have some sympathy with the OP, though. 3043.8% is blatant usury; still....he didn't have to accept it.

KingElvis

iolanthe07 wrote: »

I have some sympathy with the OP, though. 3043.8% is blatant usury; still....he didn't have to accept it.

If you're lending to a person who in general, doesn't pay back, what APR would you set?

I would set three squillion

Malky

ambertansy wrote: »

i thought

One of many mistakes you have already made along with not reading the T&C's by the sounds of it.
Sorry but have no sympathy for people who rush into borrowing money without a second thought until it's time to start paying it back.
To answer your question, you have no cause for complaint.

eeyore87

That's SO expensive.