Wage Day Advance - Minimum 21 Days interest!?

[Deleted User]

I applied with WDA last night after being redirected to them from one of these brokers. Never expected to get it, but went for £250.

Had £100 approved with Lending Stream, and this afternoon WDA approved my £250.

I'm paying the bulk of the £100 back tonight as I don't want to be charged 0.8% per day on 2 loans! Then leaving a quid or so on the LS account in the hope they report I've been behaving to CRAs (actually started a thread about that last night).

My issue with WDA is that I'm paid on 31st - and if some of my expenses etc come through earlier, I'll pay it off earlier.

WDA website makes it very clear (not on the application page though) that a minimum of 21 days interest is payable.

However, the CCA which I checked and signed does not, the CCA states the following:

"Interest is charged at the fixed, flat rate of 0.8 % per day on the balance outstanding....".

Therefore, if I was to (theoretically) pay £200 tomorrow, I should only be charged 0.8% per day on the remaining £50 as per the terms of the CCA, regardless as to whether it's within the 21 days or not?

The same surely applies if I pay all but a few quid on (or in the run up to) payday.


Early repayment is also a term within the CCA as follows:

"Early Repayment: You are entitled at any time, by giving us notice and making repayment by an agreed method, to discharge your indebtedness under this Loan Agreement in full or in part."


If I were to make a partial payment then again interest should be charged only on the outstanding amount - regardless of whether I make the payment tomorrow, next week or on payday (loan due date is the following payday, but there's no way in hell I'm carrying £250 forward to 28th August).

There is the right of withdrawal within 14 days, followed by 30 days to repay it plus interest, but that won't give the option of a 'partial payment' if I took that route (was thinking of formally withdrawing in a day or so, then paying the lot on 1st payday). But if I do that, I presumably won't get CRA data as it'll be classed as being voided?

So I'd rather go for the partial & early repayment routes - is it worth an argument with them in writing, over it? The last thing I want to do is behave and pay off say £50 when my expenses come through, if I'm going to be charged interest on it regardless......

In fairness to them - at least they've taken me, when the banks won't!!

Sorry it's such a long post!! :eek:

tell_it_how_it_is

Sorry, I'm not quite sure what you're chirping on about to be honest, it seems like you're making something out of nothing to me.

As you say, the website is pretty clear, and pops up, that a minimum of 21 days interest is payable. Therefore it seems you need to pay back around £294 by 3rd August (Monday) to clear it.

[Deleted User]

The CCA does not state any minimum charge, as I said it states:

"Interest is charged at the fixed, flat rate of 0.8 % per day on the balance outstanding....".

"Early Repayment: You are entitled at any time, by giving us notice and making repayment by an agreed method, to discharge your indebtedness under this Loan Agreement in full or in part."

1: Is a minimum charge even legal

2: It's not stated in the CCA - hardly something out of nothing. If I wanted to pay back tomorrow it should be 2 days @ 0.8% per day (£254) not 21 days worth.

3: Just browsed as a guest and see the popup - No popups come up if coming via a 3rd party - hence why I didn't see that at the time. Checked my CCA thoroughly, as that's where all charges should be stated....

SnowTiger

No need for a popup:

• Interest charged at £1.84 per day*
• Simple terms that are easy to understand
• We'll send cash to your bank, FREE of charge!
• Once approved, cash could be with you within an hour
• * Minimum loan term 21 days

Perhaps the application page you saw was different?

I'm not sure where you stand if details of the 21 day minimum are omitted from the CCA, though.

If you weren't made aware of it, they can't hold you to it.

Did the broker charge you a fee?

I wouldn't worry too much about Lending Stream reporting to CRAs. Short-term loans are generally not seen as a good thing.

Gaz83

The CCA allows lenders to charge up to 58 days' worth of interest when a loan is settled early.

Maybe I'm missing something, but sounds like they're doing you a favour by only charging 21 days' worth.

oldhand

If you were redirected from a broker keep a check on your bank account that you havent given other "brokers" the nod to take a fee from you also.........

[Deleted User]

Nope no broker fees - used to see plenty of customers unfortunately get scammed by broker fees!

RE: CCA interest - If they want to charge any more than time covered, surely it has to be stated?

Looks like withdrawal will be the way out then. CCA has errors in it ("to withdraw....write to us at [address]"!) so they probably forgot to put it in as there is not a jot about 21 days or any minimum charge anywhere.

"If you do withdraw you must repay to us no later than 30 calendar days after giving notice of your withdrawal, any sum advanced to you under this Loan Agreement and interest accrued, calculated on a daily basis from the date the credit was provided up until the date you repay"

Going by the CCA at least that section is very clear! Withdraw during this coming week, pay back on my first payday (not second as in contract) - well within 30 day withdrawal window then.

Probably won't keep me as a customer, but won't need it again.

Would be interesting to know if anyone has ever been charged the minimum for paying back early (not via the withdrawal route) - essentially it's penalizing you for trying to do the right thing!

It's very clear when applying direct - when you come via an external site (who WDA presumably pay a commission to) and get dumped on the application form it's not clear.

tell_it_how_it_is

It's called business, and they need to make money. A few addotional quid on a transaction would not be a viable business model, and would clearly lose them money.

Why not be thankful they accepted you and got you out of a short term money problem? The best way to save yourself money is to sort out so you never need to use them, surely.

[Deleted User]

So how do the others survive then?? They're the first one I've heard of to try and impose a minimum term.

Lending money at 0.8% per day is a great business no matter how long the customer keeps the money for!!!!

And they've got more work as we've got to faff about withdrawing from the agreement

tell_it_how_it_is

Some will allow speedy low cost repayment, but they are clearly loss leaders.

I've read your other thread, and am bemused as to what you are expecting or trying to achieve.

Would a better course of action be to suggest you go on the Debt Free Wannabe forum and look at ways to manage your money, and do away with such lenders altogether?