Is new Cap Retrospective

Balood

Hi

I have a number of payday loans that I am paying off. Some held by the original companies, and some held by debt collectors.

The governemtn have now brought in a new payday laon cap to prevent peoples debts spiralling out of control. As I understand it the new cap means the maximum anyone has to payback even if they default and incur charges is the loan value+100%. That means if I borrow £100 the maximum I would every have to pay back is £200.

Out of the blue I got an e-mail from Motormile Finance saying because of the new cap on payday loans they were reducing the amount I owe to reflect this. One loan is saved me £20 but in another £140. Nice I though.


What I want to know is, are Motormile Finance just applying this new cap to my old loans out of the kindness of their own heart or does the new cap effect ALL current loans being repaid.

I have e-mailed all my creditors and asked them to apply the cap to see what happens but being a bank holiday I have to wait for replies.

DCFC79

Depends what the conditions are for lenders, im sure you could find it on the net.

According to here it says its from From 2 January 2015

[Deleted User]

Would say it is kindness of the heart applied, although my dealings have only been with the 'newer type' of lender now so can't vouch, your right a £100 loan only costing me £170 at 6 months repayment (already saved near on a tenner in just making earlier repayments) no plans or excuse to default love it! this is what people wanted years ago so I can't understand the anti now
just don't think it will be long before this type of lending doors shut though thanks to those abusing and does it turn a profit :cool: yes gutted that making the repayments shall probably have no positive effect and quite the opposite, I noticed how the FOS don't refer to short terms loans just payday loans (a thing of the past!) so even they could do with some training!


Nevertheless, I hope you get the replies wanted