Wageday advance help.

shortbread8

Back in October I took out a loan with wageday advance over what I believed to be a six month period for 500. Paying back at 166 pounds a month. Today was the last day so I logged on to the website to get the email so I could tell them to shut down my account. It's saying its an 18month loan that's ridicilous at 166 per month. I may be stupid taking this type of loan but would have never gone for it being 18months. I've paid in total to them 996 pounds. There's an also option pay 650 to clear whole balance. If I carried on paying 166 a month that would be 2988 to pay back. Can anyone give me any serious advice?

wiltsguy_2

have you still got a copy/email from your original contract when you took the loan out 6 months ago?

shortbread8

Sadly not my email was wiped. The only thing I can think is having to pay that 650 next month and wiping the whole thing but the charges are ridiculous. How do I complain to someone official?

wiltsguy_2

i would give them a call on 0333 006 2000 or email, asking if they have a copy of your original agreement. If you have signed/agreed to an 18 month contract then i would agree that paying off the lump sum is best, rather than 12 more months of high interest and put it down to experience.

Just checked an 0333 numbers are normal price to call

shortbread8

Thank you. I will do. The loan document on the website is saying 18months. I can't believe how stupid ive been not double checking lesson truly learnt.

pvt

At their daily rate of 0.8%, a £500 loan would be paid back in 6 months if you're paying £166 per month.

If it had been for 18 months you should have only been paying £123 per month.

shortbread8

I have paid 166 every month for six months no payments being late. Where can I complain to somebody about there charges? Is it the financial ombudsman?

pvt

What interest rate does the loan document on their website say you were being charged?

pvt

shortbread8 wrote: »

I have paid 166 every month for six months no payments being late. Where can I complain to somebody about there charges? Is it the financial ombudsman?

Your first port of call is the lender. You have to make an formal complaint to them first. If they do not resolve it to your satisfaction, then you can take to the ombudsman.

shortbread8

It says 342 annually.

I've worked so hard to clear my debts and build my credit file don't want all this to ruin it

pvt

It may just be some kind of mistake on their part.

Their website does not offer information for anything other than a short loan with a single repayment - a classic pay day loan.

Did you ring and speak to them when you took the loan out and agreed a 6 month period? Is it possible this was a different "product" with a different rate of interest to that shown on the website?

Though I would normally expect a longer term loan to have a lower rate of interest, not a higher one.

But I guess we're not talking about 'normal' lenders here...