Interest on a credit card

Bluezulu · 13 March 2017 at 11:36AM

Hi everyone

Need some help. A friend loaned me £2600 off his credit card. I've since paid that back. But now he is telling me there is still £1200 interest still outstanding. I loaned the money in September and paid the £2600 off his card in February.

Could anyone help and advise if the interest amount is correct. I have no qualms about paying it. It just seems a bit high

Regards

Rob

[Deleted User] · 13 March 2017 at 11:40AM

Bluezulu wrote: »

A friend loaned me £2600 off his credit card. I've since paid that back. But now he is telling me there is still £1200 interest still outstanding. I loaned the money in September and paid the £2600 off his card in February.

He lent to you and then you lent it back to him? Or to someone else?

Regardless, he'll need a fairly high APR for that sort of interest. Though there will also have been cash fees.

Why not ask him for the detail?

mrmagooooooo · 13 March 2017 at 11:50AM

Agreed, Ask him to view the statements from the time the money was loaned.

You can then do your own calculations

1200 in Interest in 6 months works out at around 145% APR which is extremely unrealistic.

Sounds to me like your friend is trying to milk you out of a few quid! :-/

jonmoneybags · 13 March 2017 at 12:01PM

tell him to take a running jump. You borrowed 2600, and paid back 2600. More fool him for getting the money from such a high interest card.

bris · 13 March 2017 at 1:10PM

jonmoneybags wrote: »

tell him to take a running jump. You borrowed 2600, and paid back 2600. More fool him for getting the money from such a high interest card.

Nonsense, the fair thing to do is to make sure you pay back the cost of the interest, it's not as if the OP didn't know there would be interest.

£1200 sound very high, get statements from him.

MallyGirl · 13 March 2017 at 1:15PM

If he used to pay off in full and therefore incur no interest then his own transactions may have also generated interest in the period till you paid him back. You might be being hit with that. You should have agreed how you would handle this before you borrowed the money.

jonmoneybags · 13 March 2017 at 1:15PM

bris wrote: »

Nonsense, the fair thing to do is to make sure you pay back the cost of the interest, it's not as if the OP didn't know there would be interest.

£1200 sound very high, get statements from him.

rubbish, the OP is being ripped off so lender can take a large jump.

Bluezulu · 13 March 2017 at 1:35PM

Hi all

Yes I did know it was being loaned off a credit card. Yes I did know there would be interest to pay.

What I wasn't expecting was the interest would be so high. I believe the interest on the card for cash advances is 49%. But I don't know how to calculate it. If I had a ballpark figure based on that. I will be able to speak to him with that in mind.
I've asked to see the statement, but he is reluctant to show me.

As one of the previous posters has said. I suspect I am charged for other items on the card.

Thank you all for your replies

Shakin_Steve · 13 March 2017 at 1:38PM

What kind of person is good enough to take a chance on lending £2600, presumably without an agreement in place, and then try and rip off the loanee?

Got it.......a loan shark.

nomoneytoday · 13 March 2017 at 1:52PM

What brand of credit card was it?
Was it a cash advance or a purchase?

eskbanker · 13 March 2017 at 3:03PM

Bluezulu wrote: »

I believe the interest on the card for cash advances is 49%.

That would be for an entire year - he seems to be looking for you to pay close to 49% but only for about five months, so the pro rata interest (that he'd actually have paid on the £2600) should be closer to 49% x (5/12) x £2600 = £530ish.

Interest on a credit card

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