extortionate interest amounts! can you claim back?

SONIA79_2

Can you claim back massive amounts of interest from loan companies? We had a £10,000 loan and interest was added after ever monthly payment at various rates, one month just short of £1000! and the other months between £200 and £500.
Any advice?
Thanks

rsykes2000

No, you can't claim back interest charges.

Rafter

Not strictly true.

If the interest rate is truly extortionate and contains a penalty element, you may be able to claim it is unlawful.

A £1000 monthly charge on a £10000 loan is an APR of 300% and if your paperwork didn't highlight this clearly then you may have a legal claim.

Are you sure all these charges are interest though? If you signed up to Payment protection insurance, the costs could well have been added to the loan and run up these kinds of charges.

I suggest you go and talk to citizens advice and take your paperwork.

Good luck.

R.