Payday Loan and interest

pinnit2014

Hi,

I took out a £450 loan with CFO. Due to late charges/interest this amounted to £1100 (i know, stupid). I have paid £650 back but theres still £500 odd left.

I was wondering, with the new payday rules kicking in in January-15 would i have any recourse in terms of a maximum x2 the loan value, or is it likely that this will not be retrospective?

Anyone have any thoughts? I'm all for paying back what i owe but £1100 plus for £450 is making me slightly nauseous.

Thanks

[Deleted User]

No. .

forgotmyname

Im sure they will have ways around this...

Price cap applies to each agreement....

Tryingtomoveout

Have you tried calling them up and ask if they would set at an amout less than 1100? I certainly think this is worth a try. I don't think the new rules would be retrospective and so legally I don't think they would have to help you out, but I have heard of payday lenders agreeing a smaller amount. I would not advise going onto a payment plan with them though as this will do real damage to your credit score.

dealer_wins

pinnit2014 wrote: »

Hi,

I took out a £450 loan with CFO. Due to late charges/interest this amounted to £1100 (i know, stupid). I have paid £650 back but theres still £500 odd left.

I was wondering, with the new payday rules kicking in in January-15 would i have any recourse in terms of a maximum x2 the loan value, or is it likely that this will not be retrospective?

Anyone have any thoughts? I'm all for paying back what i owe but £1100 plus for £450 is making me slightly nauseous.

Thanks

But it didnt when you took the loan out??

Gaz83

Tryingtomoveout wrote: »

I would not advise going onto a payment plan with them though as this will do real damage to your credit score.

Your credit score doesn't exist, and even using a payday lender is a huge negative on your credit history, regardless of whether you pay them off or not.

[Deleted User]

How old is the loan?

Don't be afraid - Ask for a breakdown of the debt if you haven't already

Complain direct to them if you haven't already, not that I can believe anyone would want to have chosen this lot in more recent day, I do know of someone who got charges dropped but then was only as a result of foul play and putting an case together that they had already paid as they liked their rollover trick so it can be done, half of it was just the thrill of the chase I'd bet for some of the bad old payday lenders who were a law onto themselves, you know those that had to exit the market... it sounds like the financial ombudsman service maybe needed in meditation

I'm sure I read rules only apply to new borrowing but there is also forbearance, still not sure if I like the idea of 'outliving' some PDL's from my report! would never have believed it, all that wasted upset eh don't let it be you

jondavis30

Gaz83 wrote: »

Your credit score doesn't exist, and even using a payday lender is a huge negative on your credit history, regardless of whether you pay them off or not.

I don't see how this is true.

I borrowed £350 for 5 days, which enabled me to purchase something that was only available on the day. The month after, my Experian credit rating went up, nothing had changed, other than the fact that I've recently had 4 credit searches for various things; new bank account, new credit card account (just for emergencies) and that all my existing lines of open credit have been closed.

Payday loans do not have a negative impact on your credit score, in fact, lenders are not privy to what loans you've had in the past, they are only privy to your credit score. They rely on you being forthcoming with amounts when they're going to lend you money, and sometime ask for proof.

So no, if they're paid off in time, Payday loans don't have any impact on your credit score / credit history.

[Deleted User]

jondavis30 wrote: »

lenders are not privy to what loans you've had in the past, they are only privy to your credit score.

You seem to have typed that the wrong way round. The only thing they access to is your history of what credit you've had in the past, and how you have managed it.

No one sees your scrore but you.

Payday loans are viewed very poorly by lenders.

PeacefulWaters

jondavis30 wrote: »

I don't see how this is true.

I borrowed £350 for 5 days, which enabled me to purchase something that was only available on the day. The month after, my Experian credit rating went up, nothing had changed, other than the fact that I've recently had 4 credit searches for various things; new bank account, new credit card account (just for emergencies) and that all my existing lines of open credit have been closed.

Payday loans do not have a negative impact on your credit score, in fact, lenders are not privy to what loans you've had in the past, they are only privy to your credit score. They rely on you being forthcoming with amounts when they're going to lend you money, and sometime ask for proof.

So no, if they're paid off in time, Payday loans don't have any impact on your credit score / credit history.

One of the most inaccurate posts ever made.

Gaz83

jondavis30 wrote: »

I don't see how this is true.

I borrowed £350 for 5 days, which enabled me to purchase something that was only available on the day. The month after, my Experian credit rating went up, nothing had changed, other than the fact that I've recently had 4 credit searches for various things; new bank account, new credit card account (just for emergencies) and that all my existing lines of open credit have been closed.

Payday loans do not have a negative impact on your credit score, in fact, lenders are not privy to what loans you've had in the past, they are only privy to your credit score. They rely on you being forthcoming with amounts when they're going to lend you money, and sometime ask for proof.

So no, if they're paid off in time, Payday loans don't have any impact on your credit score / credit history.

You're talking utter, utter drivel.