Payday Loans

RugbyMum97

Hi - my friend came to me today to ask me to lend her money, because she took out a payday loan (£350) and has to repay £472.33 tomorrow. Rather than perpetuate the issue, I asked to look at the loan documents. I have found the withdrawal clause, which talks about withdrawing from the agreement within 14 days (which is this Friday) and that "If you choose to exercise your right of withdrawal you must
notify the Creditor of your intention to do so, either in writing or orally using the contact details provided above. If you do withdraw
you must repay to the Creditor, no later than 30 calendar days after giving notice of your withdrawal, any monies paid to you under
the Agreement and any interest accrued, from the date the credit was provided up until the date you repay. Interest will accrue daily in
the sum of £3.50 per day."

Does this mean if my friend withdraws from the agreement today and sends them the original loan amount, she won't have to apy the additional £122.33???

Grasping at straws!

RM97

Tixy

She wouldn't save the whole £122.33 as she will need to pay interest.

If she cancels the credit agreement within the 14 days then as it states she would be required to pay the interest accrued between the date she borrowed the money and the date it was repaid.

So if cancelled the agreement and if she paid today then she would pay 13x£3.50 in addition to the amount borrowed, so £45.50

If she cancels today and repay in another say 10days time then she'd be paying £80.50 plus the £350.

That is just based on the extract you have posted and assumes there would no other charges added that still need to be repaid (e.g. if she agreed a fee to get the money paid to her faster originally then there might be a possibility that would still need to be paid).

If she does withdraw I wouldn't recommend it is just done orally -she needs to have evidence she has done it so they cannot dispute it later. So she may want to phone and get them to email confirmation of the withdrawal whilst still on the phone, or phone and take a reference number of the call and follow it up by email.