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High APR, can something be done?

Kolokial
Kolokial Posts: 60 Forumite
Hi folks,

Just going through paperwork and I've come across two Loan Agreements my mother has, and I've noticed the APR was set at 254.5% and 399.7%.

Off the top of anyones head, as it is signed already, is there anything that can be done in relation to this extortionate amount of APR that's been applied?

The few articles and forum posts I've read suggest there is nothing illegal about the APR, and once the agreement is signed very little can be done....Can anyone confirm this?

Thank you again ladies and gents.
When someone calls you, you don't need to confirm a damn thing. The person who called you however, could be anyone.

Comments

  • imoneyop
    imoneyop Posts: 970 Forumite
    Kolokial wrote: »
    The few articles and forum posts I've read suggest there is nothing illegal about the APR, and once the agreement is signed very little can be done....Can anyone confirm this?


    Immoral yes, but illegal sadly no.

    Your mother would have been aware of it when she signed the agreement and was happy to proceed .
  • Duke203
    Duke203 Posts: 113 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Not really immoral either as both loan agreements had the APR on them. But definitely, positively, not illegal :)
    "Chuck Norris can remain solvent for longer than the markets can remain irrational"
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    yes, they can be paid off

    maybe if you gave some details we could help a bit more

    much much are the loans?
    who are they with?

    how much is her income?
    would be a good start
  • mrcow
    mrcow Posts: 15,170 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    How much were the loans for and over what time period? Unless you give an indication of both, you are not really in a position to state whether they are "immoral" or not.

    Are the loans settled? If not, do you have settlement figures and can she get credit from elsewhere?
    "One day I realised that when you are lying in your grave, it's no good saying, "I was too shy, too frightened."
    Because by then you've blown your chances. That's it."
  • fozmcfc
    fozmcfc Posts: 3,098 Forumite
    Part of the Furniture Combo Breaker PPI Party Pooper Debt-free and Proud!
    Googling both 254.5% and 399.7% seems to suggest, Provident or Shopacheck.

    If it is, it is highly likely that the APR could be irrelevant and the loan amount smallish, if it is paid off in a few months rather than a year.

    The APR on these loans, is normally not relevant, as they are not normally taken out for a year period, but by law they have to show the annual interest rate.
  • Kolokial
    Kolokial Posts: 60 Forumite
    edited 23 October 2013 at 11:15PM
    Thank you for the responses all.
    CLAPTON wrote: »
    yes, they can be paid off

    much much are the loans?
    who are they with?

    how much is her income?
    would be a good start

    Well that is the intention, just wanted to check that these companies were acting within the law. The loans are for varying amounts, ranging between £200, £600 and £1200.
    mrcow wrote:
    How much were the loans for and over what time period? Unless you give an indication of both, you are not really in a position to state whether they are "immoral" or not.

    Are the loans settled? If not, do you have settlement figures and can she get credit from elsewhere?

    Getting credit elsewhere isn't really an option for her at the moment. The loans are not settled, and we are in the process of contacting all companies to find out this information. I don't know what the time period was meant to be. These loans were taken out at least 3 years ago.

    I don't recall mentioning that there was any immorality involved.

    fozmcfc has got it right.
    When someone calls you, you don't need to confirm a damn thing. The person who called you however, could be anyone.
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