Dear all,

I have a case that is of interest to me that i am hoping we could find some advise on here. Its about a high interest loan that was

taken out in November 2015 and monthly payments have been up to date till January this year when a settlement figure was requested.

The figure provided still turned out to be more than actual amount borrowed after a year plus of making regular monthly instalments payment. Please any advise on the best line of action will help.

Need more info regarding the loan please.

How much borrowed

How long for

Interest rate

Monthly instalments

A high interest loan will no doubt be front loaded with interest

Is this a high interest installment loan?

IE would fall under "High Cost, Short Term Credit" - HCSTC?

Whos the firm plz?

Need more info regarding the loan please.

 

How much borrowed

How long for

Interest rate

Monthly instalments

 

A high interest loan will no doubt be front loaded with interest

Thanks Martin.

So the loan is £3100 taken out from everydayloan in Sep 2015 for 4years (48 number of monthly of £240.02)

APR Variable 133.6% (crazy you might say) But with verbal assurrance that this will be reviewed

after six months of timely payment which never happened. so interest is calculated to be £8,420.96

Therefore total amount to pay would be £11,520.96...

Settlement figure issued as at february 2017 is £3,390.72 after monthly payments from 01/11/15 up

to jan 2017.

Can a reasonable settlement figure be negotiated as hoping to get out from this hell of a loan which is

taking food off the table due to present circumstances. Any advice helpful. Thanks

EDL - They do like to push out the boat.

What sort of reasonable settlement figure are you looking for?

Is this a high interest installment loan?

 

IE would fall under "High Cost, Short Term Credit" - HCSTC?

Whos the firm plz?

Firm is everydayloan. Can only describe them as loan sharks who prey on peoples desperation.

EDL - They do like to push out the boat.

 

What sort of reasonable settlement figure are you looking for?

At the least a figure less than original amount taken not more than loan amount after

more than 12 monthly payment of £240. Very unfair!

I do not know for certain the formula for calculating the rebate applied for early settlement.But i honestly think that

a fair view is to divide expected amount of interest by length of loan ie £8420.96 by 4 so that expected interest for each year

should be £2105.24. I would think a fair settlement should be in this region. Please any advice on this outrageous rate is useful.

Hi everyone. Please if theres anyone with experience dealing with everydayloan, any advise will be helpful to help with ongoing dispute. Thanks

Working from the figures quoted youve had the loan for 18 months as at feb 2017 and im assuming all payments made on time when they have become due.

Total paid to date = 240.02 x 18 = 4320.36

Total of full term loan = 11520.96

11520.96 - 4320.36 = 7200.60 This is balance remaining if the loan were to run full term

Settlement figure @ feb 17 = 3390.72

So the calculation includes an interest rebate of 7200.60 - 3390.72 = 3809.88

Because in the early years there is a higher amount of capital to interest ratio with regards to the allocation if payments.

As time goes on the capital reduces so less of the monthly payment is interest and more is capital repayment if that makes sense.

Everyday Loans lend to high risk customers and with that comes high interest charges, I assume you were fully aware of the amount of the repayments and the total amount repayable before you signed the agreement. You can throw around words like outrageous and unfair but what exactly did you expect, you agreed to this??

I'm not disputing the interest on this loan is eye watering, but that's how it goes - if you didn't like it you shouldn't have taken the loan out. I assume any discount would be at their discretion - I doubt they would be interested in discounting it though, why would they? They haven't broken any laws so I don't know exactly where you can go with this to be honest, maybe someone else may have some ideas.

Yes agreed it was a high interest loan for high risk customers,

but the belief was that this outrageous interest rate would be reviewed after six months of regular payment and asserting that the loan would be eventually paid off with a view to building a good credit history for the customer.

Rather it turned out to be a trap to hold desperate people for as long as possible in debt bondage for unfair profits!

very pathetic!

Can you evidence that they would review the rate after 6 months?

no credit ever helps your credit rating

the FCA has said several times that people need to 'be aware'

that so called loans and credit cards that 'claim' to 'improve' your credit rating

can only do so under a very narrow range of circumstances...

one of which is if you have NO default's showing..

'a' running credit account, that you pay off every month in FULL, 'could' be seen to increase your likely-hood of attaining finance that 'might' not be available to those that have NO running credit.

Can you evidence that they would review the rate after 6 months?

Unfortunately, only a verbal agreement to review the interest rate after the said period, naively took the advisoro word and went with it. Classic preying on desperation, .

Please can anybody advise what the worst case senario will be, as already struggling to keep up with regular on time payment. Would paying a lump sum back be advisable? Able to borrow a lump sum but not total settlement figure from family interest free. Problem is do not know what the resulting monthly payment will be considering will have to also be paying back sum borrowed from family. Will this be a wise thing to do?

Well of course if you are in a position to pay this off then do so. Not doing so means you pay an additional £3809

If family can help then take advantage of this, especially if its interest free

irresponsible lending.........

if your creditfile was already defaulted multiple times etc etc

they should never have given the loan........