PDL - Speedcredit charges

iolanthe07

I would be surprised if it is actually legal!!!

I'm afraid that you'll probably find that it is, at least until new promised legislation is passed.

meer53

The company haven't turned the loan into a 2,3,4,5,6 month loan. The OP has, by defaulting.

Can you tell me of any lender, anywhere, who won't continue to charge interest once the borrower has defaulted ? The OP was aware of the interest rate when they took the loan, whether it's ridiculous or not, thats what they agreed to.

Apples2

UsetheFORCE wrote: »

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.

"They" aren't doing anything of the sort. It is the BORROWER who has decided to change the term of the loan.

The LENDER entered into an agreement to supply money for a pre-agreed period, after which, the borrower returns ALL money owed.

Maybe the APR offered by these people should be capped but as of today, they aren't. Doesn't it make you wonder why people look at that horrific figure but still merrily jump at the chance to enter into such an agreement?

Of course, there is an aside to this where the APR is wholly irrelevant as the silly loan should never be taken out to last a whole year, it isn't how it is marketed but it is how a typical borrower treats it when he can't be bothered repaying it.

Stop acting the victim, all of this is caused by the borrower deciding not to repay the loan on time. An outcome I'm sure most in this position was already aware of before applying.

Nobody owes you money, the Government fund more than enough people's lives already. There is a huge trend of people who feel the money should be supplied to them as a donation.

Stop taking loans out when you cannot repay them.

Spend less than you earn or get another job, neither us or Payday Lenders owe you a decent living.

UsetheFORCE

meer53 wrote: »

The company haven't turned the loan into a 2,3,4,5,6 month loan. The OP has, by defaulting.

Can you tell me of any lender, anywhere, who won't continue to charge interest once the borrower has defaulted ? The OP was aware of the interest rate when they took the loan, whether it's ridiculous or not, thats what they agreed to.

Actually, loads don't charge interest once you have defaulted, they want their money back, the interest to date and the costs of obtaining it...and if they do charge interest, of course the interest would be far more reasonable, a mere fraction of what a PDL will lend.

Apples2

UsetheFORCE wrote: »

and if they do charge interest, of course the interest would be far more reasonable,

But those lenders won't lend to the typical PDL customer as they know it isn't going to be repaid.

It wouldn't be a "one off", it would be a regular occurence. Take a guess what would happen to those nice low interest rates from your "good lenders" if they had to start hounding for their money.

UsetheFORCE

Apples2 wrote: »

The LENDER entered into an agreement to supply money for a pre-agreed period, after which, the borrower returns ALL money owed.

Yes, and if for some reason they don't....the lender needs to recover the sums due under the agreement, charging interest if necessary for the fault that the borrower still has use of the money but clearly not the ridiculous interest due under the defaulted agreement.

Still like to know how many PDL's have gone to court and had months and months of contractual interest awarded to them? (the interest rate applicable during the term of the loan itself)


Anyway, it seems there are too many PDL supporters out there, the sums due under the agreement prior to default plus costs must be paid but not the extra PUNITIVE interest (completely unfair in my eyes), the PDL took the risk, if it backfired then I have little sympathy for them.

They should be more choosy who they lend to and perform better checks so as to reduce the likelyhood of default.

UsetheFORCE

Apples2 wrote: »

But those lenders won't lend to the typical PDL customer as they know it isn't going to be repaid.

It wouldn't be a "one off", it would be a regular occurence. Take a guess what would happen to those nice low interest rates from your "good lenders" if they had to start hounding for their money.

So basically the PDL's are irresponsible lenders? Assuming that the PDL does still get it's money back (advance+interest) in a reasonable time, say 6-12 months after the default, they would of still made say 25-100% interest for the year which is more than reasonable.

The OP wasn't suggesting not paying the original loan+ interest, they were objecting to the ever increasing ridiculously high level of interest. I have an issue with the people who take out the PDL's with ABSOLUTELY no intention of repaying it.

Apples2

UsetheFORCE wrote: »

Anyway, it seems there are too many PDL supporters out there, the

Please don't confuse me or anyone else who defend a simple agreement with a supporter of Payday Loans.

I couldn't give a hoot if they were outlawed today. I can though, see a market for what they offer to those adult & responsible enough to take advantage of it where potential bank charges or time off work (car repairs) would result in the borrower being in a worse position.

There is no reason this shouldn't continue. Regulation is welcome but the likely outcome may not be rosey, many will simply go to the wall. They will lose too much money from the non-payers to maintain a business.

Ultimately, it isn't the payday lenders who need regulating, it's the endless queue of idiots who use them.