Amigo loans, interest confusion

stu3y85

i took out an amigo loan quite a while ago, my monthly repayment was £197. paid it on time every time since i took the loan in nov 2015 ive ive moved the payment date a couple of times for a week or 2 later (just pay a bit more interest) but month despite paying £197 the balance of £5000 has hardly ever dropped, until feb this year, they stopped adding interest and now the full £197 comes off the balance so now its flying down. I thought interest was charged monthly? it seems they have front loaded it since its now completely stopped charging interest? i thought front loading interest was illegal? i haven't spoke to them about it in case its playing in my favour by not getting charged interest... i just cant work out whats gone on and why ive paid over £6000 back before the 5000 balance has finally started to drop.

[Deleted User]

They haven't front loaded the interest. It's just a poor way of displaying the balance.

Ask them for a breakdown and current balance if you need one. You're always going to pay a lot of interest on an Amigo loan.

stu3y85

why would the interest stop all together though? surely it should be charged until the last payment?

[Deleted User]

It is.

They just show it in a poor way.

Oliver2809006

Isn't there a maximum amount they can charge in interest - sure I'm correct

Can't be double the amount of the loan perhaps but definitely along those lines.

Sncjw

What’s the apr it’s usually high for amigo loans

stu3y85

interest rate was high, 49%
repayments are £197 ive been getting charged between £240 and £170 every month, until april then it dropped to £0

[Deleted User]

Has the loan defaulted?

Bermonia

With amigo loans you have agreed to a contract which will stipulate a set amount of interest for the agreed upon period - payday lenders usually apply your repayments to the interest in the first instance and then start to clear down the balance (all perfectly exceptable) if you settled your loan early they would calculate the interest accordingly and you would pay less... in essence as has already been advised it is a poor way to display it but it is not wrong

SnowTiger

As zx81 suggests, there's probably some confusion around they way Amigo shows the details.

https://www.amigoloans.co.uk/:

Representative Example: Borrowing £5,000 over 60 months, repaying £197.62 per month, total repayable £11,857.20. Interest rate 49.9% (variable).

Add the £6,000 you had already paid to the £5,000 that was outstanding and you get £11,000.

Moving payment dates will add additional interest. And I guess the details you provided here are approximate. If you're paying 49.9% interest your loan of £5,000 will likely cost you over £12,000 taking that in to consideration.

foxy-stoat

I think your numbers are off. If you have been paying £197 since November 2015 then you have made 46 payments = £9,062.

What was the original loan for and over how many months?