Credit Union

Jean2023

I took out a loan with a credit union they take the money straight from my payslip.  I applied for a new loan of £600 I still have an outstanding amount of £669 which has already had the interest applied .. but they have added the 669 and the £600 I have asked for put them together as £1559 and want to charge me 2.38 interest and 32.60 APR and to pay back at £91.74 plus £10 savings for 17 months.  

I wrote to complain as I didn’t feel it right to add interest to the £669.

Can I ask us this right.

Jean Hazell

MorningcoffeeIV

You won't be charged interest twice.

rich184

Interest on a credit union loan is usually charged on the reducing loan balance rather than at the start of the loan.  So you won’t be charged twice.