High APR, can something be done?

Kolokial

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.

imoneyop

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

Not really immoral either as both loan agreements had the APR on them. But definitely, positively, not illegal

CLAPTON

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

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?

fozmcfc

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

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.