speed credit.

wiganboy

I took a payday loan for £300 with speed credit, and with out speed credit txting me, or e mailing me saying your loan repayment is due. I got a txt masge of a company called northern debt recovery saying you agrred to pay a payment plan to settle your toothfairy loan so pay £144 tomorrow. I hadn't even set up a payment plan with them so i don't know where they got that from, so i paid £192 instead, then it said the remaining balance was £167, so i was going to settle that on friday then when i went to settle the debt it had gone up to £575, that's more than £400 interest in a week, surly that can't be legal can it??. I have tried to conatct them on friday but they havn't got back to me yet i said i am only going to deal with e mail and in writing. Is there anything i can do. Can they come to my house and start taking stuff. Can anyone help please??

Apples2

You took a loan of £300 yes?
When was it due to be repaid?
Did you repay it?

If you didn't repay it on time, that comedy APR figure you saw on their website will become very real
http://www.speedcredit.co.uk/

representative 16,534% APR

This is what happens when you take out loans and don't repay them.

It is Legal to charge whatever figure they like. I think when these laws were passed, nobody ever though anyone would be crazy enough to apply for such a ridiculous product.

wiganboy

I didn't pay it on time but i paid for an extension on it which was £48 but it doesn't say how long the extension is for and there was no confirmation of them for the payment, and i was going to repay the rest which was £167 but like i say when i went to repay it it had jumped up £400 in a week. That doesn't seem like an extension to me. How can i pay the loan of if it is going to go up £400 a week? And why won't they contact me back?

fwor

wiganboy wrote: »

And why won't they contact me back?

Because the longer they have you on a representative APR of 16,534%, the more money they make?

You may have paid an admin charge of £48 for the extension, but that won't stop their comedy (not) interest charge being added to what you owe them, every day that you owe it.

In truth, the best way to stop the pain that this will cause is to pay up as soon as you can. Delay will be costly.

Apples2

Best start selling anything and everything you can.

There are ways out but involves a lot of Work and a trashed credit file.

Best thing you can do is sell everything you own and repay this loan. I assume you have learned Why we always advise against this type of loan

The consequenes of not repaying are horrific, as the Apr clearly suggests.

wiganboy

Thank you for the reply. I don't have that kind of money to pay back, what are my other options here i need to set up a paymnet plan of some kind, but can't seem to get hold of them so i'm in a catch 22 i feel like. Anyone any ideas please??

Apples2

They will most likely raid your account taking as much as they can. They won't be too concerned if they leave you with nothing.

You should close your back account and open a new account with a different bank. Put all your money in the new account and move all your direct debits across.

This will stop them raiding your account. Under no circumstances give them the new details.
Do not get anyone else to make a payment on your behalf.

Write to them and offer a payment plan. Don't take the Mick, be sensible about your offer but make a condition that they freeze interest.

Your credit file will be smashed. You will not get credit for the next 6 years.

fwor

If you feel like doing a few years of ducking and diving to get away from them and whoever they appoint to recover your debt then there are ways to do that, as referred to above. Your chances of getting credit again if you do that will be severely damaged.

If you can sell or pawn stuff to repay and get them off your back asap, you will be glad you did so in retrospect.

dothebartman

6 years of no credit for a £300 loan, wow harsh lesson!

jon142

16,500% that is absolutely nuts!

Take.... £400 it will cost you £196!!!! so u pay back nearly £600 for 28 days????

KingElvis

I would get selling your tat and pay back that loan. Phones, computers, consoles and all other electronic shizzle need to be sold and fast, even the shirt off your back.

You'll be in a very dark place if you just ignore it.