Every Day Loans

aldury

Hi,


I recently took out a £1600 loan with Everyday Loans. My intention is to pay the balance early - next few months as in the agreement any additional payments come straight off the balance ( not interest - confirmed in conversation with advisor yesterday ), so two payments of £600 should pretty much clear the balance.


What did shock me was that the loan schedule is to pay £207.88 per month for 24 months. After 2 months payments they have told me my balance is still £1551.58?


Is this legal?


Thanks

[Deleted User]

Sounds about right, without knowing what the APR is, but assuming it's incredibly high.

iolanthe07

What is often misunderstood is that the early payments on a loan are mostly to pay off interest. Only in the later stages do you see big inroads into the principal. Of course, if you ask for an early settlement, allowance will be made for the interest you have already paid, though there may be a one or two month penalty.

dresdendave

Perhaps I've misunderstood the Op but how are two payments of £600 going to "pretty much pay off" a £1600 loan at a ludicrous APR?


And yes, whatever you signed up to will be legal.

SnowTiger

Deleted_User wrote: »

Sounds about right, without knowing what the APR is, but assuming it's incredibly high.

The calculator here suggests the APR is 146%. Ouch!

System

"Representative 79.4% APR. Rates from 24.2% to 299.9% max APR."

Wow.

Mobeer

Yes its legal - just a loan with a high interest rate.

The lesson here is to ask up front for all details of fees, APR, monthly payment, number of months (hence total amount payable) etc in advance.

At least you if you can settle the loan quickly you probably won't have to pay back that full amount.

Robisere

Representative Example: If you borrow £3,000.00 over 24 months at a Representative rate of 79.4% APR and an annual interest rate of 59.9% (fixed), you would pay 24 monthly instalments of £217.24. The total charge for credit will be £2,213.68 and the total amount payable will be £5,213.68.
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https://www.choosewisely.co.uk/loans/library/everyday-loans