PDL - Speedcredit charges

jonesMUFCforever

UsetheFORCE wrote: »

If you sign up for a loan term of 30 days and for whatever reason you are unable to repay on the specified date then it is ridiculous that that continue to be charged interest at the same rate every day beyond this!!!

If I wanted a 2,3,4,5,6 month loan then I would of applied for one!!!

Just because it is in a set of terms and conditions doesn't make it legal and I would be surprised if it is actually legal!!!

Care to read that post again?
What you have posted is ridiculous.

UsetheFORCE

Hmmm, maybe not very clear but far from ridiculous!!!

Just because these payday loan companies put something in their terms and conditions, doesn't make it legal (in law).

A month loan at 10,000% APR or whatever is only what you would of agreed to due to the very short nature of the loan. So charging ridiculously high rates of interest on a loan beyond the original short term of the loan is in my eyes grossly unfair and no doubt there is legislation that can be used to counter it!

Regards

meer53

Saying you won't pay 2k to them won't help either. Their address is on their website, i'd suggest the OP writes to them with their offer of repayment.

SuperAllyB

UsetheFORCE wrote: »

If you sign up for a loan term of 30 days and for whatever reason you are unable to repay on the specified date then it is ridiculous that that continue to be charged interest at the same rate every day beyond this!!!

If I wanted a 2,3,4,5,6 month loan then I would of applied for one!!!

Just because it is in a set of terms and conditions doesn't make it legal and I would be surprised if it is actually legal!!!

If you sign up for a loan term of 30 days then you should pay it off within 30 days, otherwise, yes you're right, you should have applied for a 2,3,4,5,6 month loan.

GhIFA

UsetheFORCE wrote: »

Hmmm, maybe not very clear but far from ridiculous!!!

Just because these payday loan companies put something in their terms and conditions, doesn't make it legal (in law).

A month loan at 10,000% APR or whatever is only what you would of agreed to due to the very short nature of the loan. So charging ridiculously high rates of interest on a loan beyond the original short term of the loan is in my eyes grossly unfair and no doubt there is legislation that can be used to counter it!

Regards

Still ridiculous - He's accruing charges because he has defaulted on the terms of loan he agreed to.

UsetheFORCE

So now you sign up to a 1 month loan and because you don't pay it back after a month, they turn it into a 2,3,4,5,6 month loan. Why do they do rollovers? Pretty pointless when they just increase the loan term to as long as they want and charge you penalty charges on top.

Not sure this would stand up in court.... how many people have been taken to court by PDL's in this situation and been made to pay many months of interest like this??

GhIFA

UsetheFORCE wrote: »

So now you sign up to a 1 month loan and because you don't pay it back after a month, they turn it into a 2,3,4,5,6 month loan. Why do they do rollovers? Pretty pointless when they just increase the loan term to as long as they want and charge you penalty charges on top.

Not sure this would stand up in court.... how many people have been taken to court by PDL's in this situation and been made to pay many months of interest like this??

They haven't increased the term - he has defaulted.

jonesMUFCforever

UsetheFORCE wrote: »

So now you sign up to a 1 month loan and because you don't pay it back after a month, they turn it into a 2,3,4,5,6 month loan. Why do they do rollovers? Pretty pointless when they just increase the loan term to as long as they want and charge you penalty charges on top.

Not sure this would stand up in court.... how many people have been taken to court by PDL's in this situation and been made to pay many months of interest like this??

Come on then Einstein how does the lender get its money back if OP has defaulted?
Should they just write it off for being stupid for lending to them in the first place??
Any contract is legal if you agree to it and there is no law (yet) that restricts how much someone can charge for credit.

UsetheFORCE

Yes, defaulted on the agreed term so now you owe the Principal plus interest for the term plus the actual costs associated with the company recovering their money.

If a company expects to receive interest at a ridiculous % (the same as during the term) beyond the term of the loan then they are in essence making a short term loan into an extended loan for however long they like.

Clearly, legally you have defaulted on the loan.

I think personally a company in this situation if they intend to charge you interest at this scandalous rate for say 6 months should have a six month loan minimum with the option of you paying after 1 month with an interest rebate. At least people will realise that a £500 loan is going to cost them £800 in interest if they don't pay for 6 months.

UsetheFORCE

jonesMUFCforever wrote: »

Come on then Einstein how does the lender get its money back if OP has defaulted?
Should they just write it off for being stupid for lending to them in the first place??
Any contract is legal if you agree to it and there is no law (yet) that restricts how much someone can charge for credit.

Re read your post and the thread then re write your post and I will answer it!!!