Payday express advice

Fawun

Hello,

So yesterday night I took out a payday loan with payday express for £130 due to be repaid to the total tune of just over £160.

I no longer need the loan, I haven't touched the money and I did email them prior to them putting it into my account telling them I no longer required it.

After I noticed they had transferred the money into my account today I tried to ring them to tell them I no longer wanted the loan but they are closed Sundays.


In the terms and conditions of the loan I have a "14 day cooling off period"

My question is what is the likelihood of me having to pay back the total amount (£160) a mere day later? I really don't want to pay all the interest, I can swallow paying maybe the days worth of interest (£4.60 or so according to agreement) but not a full £30 more for a day!

I plan on ringing them tomorrow when they open, has anybody else done this before? Is it quite a simple process?

redpete

Fawun wrote: »

I really don't want to pay all the interest, I can swallow paying maybe the days worth of interest (£4.60 or so according to agreement) but not a full £30 more for a day!

I doubt that £4.60 would cover their costs to provide you with the money.

Fawun

redpete wrote: »

I doubt that £4.60 would cover their costs to provide you with the money.

In the agreement they have sent me they say "I must notify them my wish to withdraw from the agreement within 14 days and pay back the outstanding amount within 30 days and any Interest incurred that equates to £4.64 per day"

Obviously they would like it more I'm sure if I didn't also pay it back tomorrow but that's my plan, as per their terms and conditions.

I've just read on threads on this forum before that people have had to fight for them to honour the 14 day cooling off period which is a lawful right.

Apples2

If it were that simple everyone would be taking free payday loans.

Go for it, it is your legal right after all but expect a bumpy ride.

Personally I think you should just pay the thing in accordance with the terms to save on the hassle.

You are in a very bad place to even consider applying in the first place and these guys threw you a lifeline, I doubt they will next time

Fawun

Apples2 wrote: »

If it were that simple everyone would be taking free payday loans.

Go for it, it is your legal right after all but expect a bumpy ride.

Personally I think you should just pay the thing in accordance with the terms to save on the hassle.

You are in a very bad place to even consider applying in the first place and these guys threw you a lifeline, I doubt they will next time

I don't dispute me having to pay interest but saying as per their terms and conditions is its not worth asking to pay the interest of £4.64 per day rather than the £30 they are going to charge me if I repay on my promised payment date.

Essentially pay early but pay a part interest rather than the full amount as that interest is based on my having the loan for a longer time period than I will?

I will have had the loan for 24 hours when I request to pay it back tomorrow.

Apples2

You may find they state the £30 is not accrued interest over the loan period but rather a charge for credit. A fixed fee for supplying your loan if you will. The interest rate does not start until you fail to repay.

There may also be a clause whereby if you cancel your loan within 14 days they are entitled to charge you an admin fee as well as interest for the days you had the loan. we can only guess what that amin fee will be!

Either way, as I said earlier, it is unlikely to be as simple as you have decided it will be. They have a long history of dealing with defaulters and those looking for a way out.

Please keep us updated though

rizla_king

Please post up the terms of the agreement if you can.

[Deleted User]

Fawun wrote: »

Hello,

In the terms and conditions of the loan I have a "14 day cooling off period"
QUOTE]

Not this old chestnut please!

No such thing as "interest free" loans ! from anywhere!
Put another way - who pays?

Remember my debt rising as I desperately paid back in installments (which also ended up crippling me) - and only a court helped

Fawun

Hello,
Thanks for the responses, I don't think people quite understand, I'm not asking them to "get rid" of the interest on my loan, I'm quite happy to pay it may it be necessary.
Basically I took the loan on the 16th/17th (very late 16th money way paid into account on the 17th - yesterday) of March this year.
It was for £130 and the repayment date was set for the 25th of March this year, for having the loan that long I would be charged a full total sum of £162.50 (including the interest obviously) if I repaid on the 25th.


I no longer need the loan a mere 24 hours after the money was taken into my account, I was reading through the terms and conditions of my loan agreement which they sent to me which sated the following (copy and pasted from the agreement) :-

"RIGHT OF WITHDRAWAL
You have a right to withdraw from this agreement at any time before the end of 14 days beginning with the day after the day on which the agreement is made. You must notify us of this orally or via post"

Then there was the contact number/address here in the agreement

Once you have notified us that you wish to withdraw you must repay the amount of the credit without delay and in any event within 30 days after you have given us notice. You must also pay us interest during this period (which amounts to £4.64 per day).

The reason I questioned if I would have to pay the full £162.50 back to them was because I also read this in the agreement -

"Amount of single
repayment: £162.50
Total Amount £162.50 This shows the total amount you would pay if you took an Repayable advance on account opening up to the full Credit Limit and repaid it on the Repayment Date making the same assumptions as set out above for the APR.

So I took that as saying that if I paid on the initial repayment date of the 25th I would (quite rightly) have to pay £162.50 back to them, understood. But I wanted to effectively "pay it off early" but actually "withdraw" from the agreement as per their terms and conditions.

I hope that makes sense, It confused me for a while too!

Anyway, I rang them this morning, told them I no longer needed the loan, that i wanted to withdraw and I was happy to pay any interest for the 24hours it had been sat in my account (the 4.64 outlined in the agreement).

They were most helpful and really great about it, they didnt actually end up charging me the £4.64 interest because I hadn't had the loan for a full 24 hours and I simply repaid the £130 I initially borrowed.

rizla_king

That seems correct from those terms.

No fees to be added apart from daily interest if you withdraw within the 14 days, and none of that added because you did not accrue a whole day.

Thanks for the update.

Apples2

That's great news, and a real surprise but Well Done.