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Advise needed quickly on interest maximum amount.

What is the maximum interest that can be charged on a loan of £400 over 77 weeks ?
The loan company have this on the agreement . . .  Interest is charged at a simple fixed interest rate of 207.6% per annum on the amount of credit for the term and is applied to the account, in full at the commencement of the agreement.
APR is 
1,276.4%
Is there a maximum interest rate applicable that they can charge ?
Thanks for looking.

Comments

  • No maximum, they can charge what they like - just as long as it's clearly stated in the contract you signed.  That's a ridiculous rate though, right up there with the payday loan companies.
  • molerat
    molerat Posts: 33,492 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    As it is not a "short term loan agreement" AKA Payday Loan there is no cap on the rate they can charge, as long as it is all set out in the agreement anything goes.
  • sourcrates
    sourcrates Posts: 30,591 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Don`t do it, look at other options, if its for bills, see if you can put them off till next payday, if its for food, there are many foodbanks out there, if its anything else, then it can wait without the need to borrow, please don`t do it.
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