Payday Loans

MWSBNuthurst

My wife used to work for one of the major home lenders, lending anywhere from £100 to £2000 with repayments being collected from the borrowers home.
I may be wrong but I understood that if a customer took out a loan, and they decided within 28 days that they did not want the loan, providing the capital was repaid in full within this period they were not liable for any interest charges.
If this IS the case, and there is a "cooling off" period of 28 days - then surely we could apply the same principle to Quikquid etc and other payday lenders ??

skintandscared_2

err, no. On the basis that they are, by definition, "PAYDAY" loans, the assumption is that they will be paid off at the next payday, which is likely to be less than 28 days in the future. On that basis, about 95% of payday loans could be repaid within 28 days and therefore cancelled without any interest due. I'm no Richard Branson, but that business plan makes very little financial sense to me... :rotfl: Whatever T&C's your wife's ex employer had will clearly be very different to the T&C's that payday lenders use

ihateyes

pdl's operate a 7day cancellation, but you are still lable for daily interest until the money is paid.

oldhand

Full marks for seeking a get out clause though...........:cool: