FLM Quick loans

jammydodger86

Hi all,

First post of MSE so hope i'm posting this in the right place..

I took out a £500 loan with FLM Quick in Decemeber last year. At that time it looked like one of the best options for someone with bad credit for a small loan as the interest didn't seem too extortionate compared to other deals I was offered (I would pay approx £50 per month and have it paid off within 12 months). However, after reviewing my FLM account the other day I noticed that i'm now 9 months in and still have an outstanding 'settlement' balance of £450 despite paying over £406 to them already.

I then noticed that within my account I had TWO credit agreements, one called my 'Original credit agreement' and another titled my 'Current credit agreement' which seemed to have appeared out of nowhere. Apon looking into each credit agreement the original states- You will have to make minimum monthly payments each month. These will be the greater of the sum of 1% of the total outstanding balance, plus interest and any Default Sums added to your Account in the last Statement Period (see clause 4 of the Terms) or £5. If your outstanding balance is less than £5, your repayment will be your remaining balance.


The NEW credit agreement states- You will have to make minimum monthly payments each month. These will be the greater of the sum of 1% of the total outstanding balance, plus interest added to your Account in the last Statement Period (see clause 4 of the Terms) or £49.45. If your outstanding balance is less than £49.45, your repayment will be
your remaining balance.

I do not recall receiving any such notices from FLM that my agreement would be changing. Has anyone had experience of them doing this and can they do this?? I'm going to paying them off forever at this rate.

Many thanks,

Ange

glasgowsaver2011

jammydodger86 wrote: »

Hi all,

First post of MSE so hope i'm posting this in the right place..

I took out a £500 loan with FLM Quick in Decemeber last year. At that time it looked like one of the best options for someone with bad credit for a small loan as the interest didn't seem too extortionate compared to other deals I was offered (I would pay approx £50 per month and have it paid off within 12 months). However, after reviewing my FLM account the other day I noticed that i'm now 9 months in and still have an outstanding 'settlement' balance of £450 despite paying over £406 to them already.

I then noticed that within my account I had TWO credit agreements, one called my 'Original credit agreement' and another titled my 'Current credit agreement' which seemed to have appeared out of nowhere. Apon looking into each credit agreement the original states- You will have to make minimum monthly payments each month. These will be the greater of the sum of 1% of the total outstanding balance, plus interest and any Default Sums added to your Account in the last Statement Period (see clause 4 of the Terms) or £5. If your outstanding balance is less than £5, your repayment will be your remaining balance.


The NEW credit agreement states- You will have to make minimum monthly payments each month. These will be the greater of the sum of 1% of the total outstanding balance, plus interest added to your Account in the last Statement Period (see clause 4 of the Terms) or £49.45. If your outstanding balance is less than £49.45, your repayment will be
your remaining balance.

I do not recall receiving any such notices from FLM that my agreement would be changing. Has anyone had experience of them doing this and can they do this?? I'm going to paying them off forever at this rate.

Many thanks,

Ange

Is there any chance there has been fraudulent activity?

ampafc

To the OP - I'm a bit confused.

I would have thought that it was impossible to pay off a GBP 500 loan with these guys over 12 months by paying GBP 50 per month. That GBP 50 obviously only paid off the interest plus 1% of the balance. I fail to see what FLM has done wrong?

I had one of these loans as well recently (GBP 300) and was paying off about 30 a month, but this hardly reduced the balance at all. Luckily I came into some money and was able to pay it off in one go - is there no way you can borrow off friends to pay it all off?

jammydodger86

ampafc,

Forgive my ignorance, I have just went through the orginal Credit Agreemen again and see what you are saying. I was naive to think I was paying anything else off but the interest! Thank you.. I am obviously going to have to pay off additional money each month to decrease the total amount however I am still unsure why the minimum monthly payment has changed from £5 per month to a whoping £49.95

Thanks