Payday UK Query

TimmyTechno

Hi,

I took out a loan with Payday UK towards the end of last month and was due to repay it the end of this month.

I phoned up today and said I'd like to repay early, they said OK and told me the cost to repay.. I was surprised to hear it was the same amount that I would have to repay at the end of the month, even though I'm paying around 20 days earlier. I questioned this on the phone and the manager came on and told me it's not how it works, it's a fixed fee...

My question to you guys, is is this right? I thought payday loans accrued interest daily and that you save interest by repaying early.

Thanks.

DCFC79

Well according to payday uk " interest is charged on the amount you borrow. We charge a fixed interest rate on the loan amount borrowed."

You ask them yourself if you want via online chat.

Enfieldian

I believe that only Wonga offers a discount on the original amount quoted if you settle early.....

Moneymash

It's good that you have the money to pay this off early, now that other posters have supplied you with your answer (there is no discount with this company), pay it off and be done with them! Just make sure your payment doesn't coincide with whatever payment method (DD, CPA) you chose when you agreed to their T and C's. You don't want any hassles trying to get an overpayment back at this time of the year.

TimmyTechno

Thank you guys, and I've paid it off