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Payday Early Settlement

Hi
I took out a payday loan on 26th Feb for £250. 1st payment on 16th April. I want to settle early and the figure is £344. Is this correct to charge such a high amount?

Comments

  • System
    System Posts: 178,365 Community Admin
    10,000 Posts Photogenic Name Dropper
    Yes. They can add up to 56 days interest as an early repayment charge. At the 1000+ percent interest rates such loans have it adds up to a lot of money in a very short time.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • Sncjw
    Sncjw Posts: 3,567 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    This is why pekple say don!!!8217;t get a payday loan. The interest rates are crippling
    Mortgage free wannabe 

    Actual mortgage stating amount £75,150

    Overpayment paused to pay off cc 

    Starting balance £66,565.45

    Current balance £58,108

    Cc around 8k. 

  • Fireflyaway
    Fireflyaway Posts: 2,766 Forumite
    Fifth Anniversary 1,000 Posts
    Yes that sounds about right. Awful companies. Best thing we can all do is put these people out of business by not using them.
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
    Serious question. What were you expecting? What is the APR?
  • DCFC79
    DCFC79 Posts: 40,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Yes that sounds about right. Awful companies. Best thing we can all do is put these people out of business by not using them.

    I agree they are awful but they do serve a purpose if used responsibly.
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