1000% per annum interest. PLEASE HELP!!!

samlen

we took out loans secured on our cars. we keep the cars and drive them whilst they hold the log book. the rate is over 500% interest over a 6 month period. it is less if you repay it in 2 or 3 months. if you dont, you pay a smaller amount and the body of your loan plus 500% gets rolled over to a new loan over another 6 months. a year after lending £1500 we owe over £5000. our concern is that even if we allow them to reclaim the cars we will still owe thousands despite them having actually been repaid many times over. any helpful suggestions please?

brownbabygirl

WOW............who did you borrow from? Loan sharks?

samlen

they advertise. can i name them

brownbabygirl

Yes.....................!

samlen

they have a lovely looking website at .co.uk

Burlesque_Babe

What are the terms and conditions? If you default, hand over the cars, do they wipe the slate clean? If so (and the cars aren't brand new) it might be worth sacrificing the cars, getting them out of your hair and using the loan payments to save for a runaround.

Alias_Omega

The company

http://www.mobilemoney.co.uk/log-book-loan.aspx

Alias_Omega

lol..

[FONT=Arial, Helvetica, sans-serif]Loans secured on your car.
Our interest rate is 285% APR Typical variable and this means that two out of three clients pay this rate or lower.[/FONT]

brownbabygirl

man that is extortionate! i cant believe this is actually legal. samlen, why did u have to borrow money from them?

needaspirin

The Extortionate Credit Test applies to loans taken out before 6th April 2007.

The Consumer Credit Act 1974 defines a credit agreement as an 'extortionate credit bargain' if it requires an individual to make payments which are 'grossly exorbitant or otherwise grossly contravene ordinary principles of fair dealing'. This definition of extortionate credit applies to all credit agreements and consumer hire agreements between a credit provider and an individual, whether or not the agreement is regulated.

Office of Fair Trading Leaflet:
http://d.turboupload.com/d/2072590/Extortionate_Credit.pdf.html

Office of Fair Trading (OFT)
Publications
PO Box 366
Hayes
Middlesex
UB3 1XB

Tel: 0800 389 3158
Fax: 0870 607 0321
E-mail: oft@ecgroup.uk.com
Website: https://www.oft.gov.uk

Dylanwing

And you can borrow up to £25K!!!! Nice website, dreadful product.