payday loan agreement

[ianandemma]

Hi I took out a payday loan last month - I dont think the agreement should be under the CCA - check out what they have said about interest -

 

"

Total Charge For Credit: £150.00 (comprising interest of £150.00) Interest Rate is charged at the rate of 25% per annum, pre-computed and applied to the balance outstanding on the date of this Agreement. agreed loan duration"

 

This I cant believe because they say the apr is 33653% then they say its 25% per annum

 

What do you think?

 

Thanks

 

Ian

 

       FIXED-SUM LOAN AGREEMENT REGULATED BY THE   CONSUMER CREDIT ACT 1974       

     This   Agreement (xxxxx) is made between: - Us, MEM Consumer Finance Limited of   Witan Gate House, 500-600 Witan Gate West, Milton Keynes, Buckinghamshire MK9   1SH ("the Creditor") and You, ("the Debtor")       

     Name: xxxx       

     Address: xxxx       

     Key   Financial Information       

     Amount   Of Credit: £600.00       Duration   of Agreement: 14 days       Total   Amount Payable: £750.00 to be repaid in a single   payment on xxxxx (the "Payment Date")       APR: 33653.0%       

     Other   Financial Information       

     Total   Charge For Credit: £150.00 (comprising interest of   £150.00)       Interest   Rate is charged at the rate of 25% per annum, pre-computed and applied to the   balance outstanding on the date of this Agreement. agreed loan duration.       

     Key   Information       

     If You   default, our tariff charges are as follows: We will charge You the sum of £10   per letter for the second, third, fourth and fifth letter that we send to You   in respect of the collection of any outstanding sums on your account. You   must pay us any reasonable expenses and costs that We may incur in tracing   You if You move address without first notifying Us. In addition, You must pay   us any reasonable expenses and costs we may incur in taking other steps to   enforce, or attempt to enforce, our rights against You under this Agreement,   and You will be charged simple interest, both before and after judgment, at   the rate set out above from the date payment falls due until payment is made.       

     IMPORTANT   – READ THIS CAREFULLY TO FIND OUT ABOUT YOUR RIGHTS       

     The Consumer   Credit Act 1974 lays down certain requirements for your protection which   should have been complied with when this agreement was made. If they were   not, the creditor cannot enforce this agreement without getting a court   order.       The Act also   gives you a number of rights. You can settle this agreement at any time by   giving notice in writing and paying off the amount you owe under the   agreement which may be reduced by a rebate.       If you would   like to know more about your rights under the Act, contact either your local   Trading Standards Department or your nearest Citizen’s Advice Bureau.       

     Missing   Payments       

     Missing   payments could have severe consequences and make obtaining credit more   difficult.       



     To sign   electronically, please type your name in the box below. This will serve as   your signature authorising this transaction.       

     This is a   Credit Agreement regulated by the Consumer Credit Act 1974. Sign only if you   want to be legally bound by its terms       

     Signature(s)   of Debtor(s)                      *(Please enter your surname only)             


     Date(s) of   Signature(s)   xxxxxx       





     To verify   your signature, please insert your Mother's maiden name below:       

                                                                     *              


     By signing   this Agreement, you agree to its terms which are set out above and in the   terms and conditions sent with the Agreement.       



     Signed for   the Creditor  ............................................       

     Date of   Agreement  xxxxxxxxxxxx       

     IMPORTANT:   USE OF YOUR INFORMATION       

     You have a   right to know how we will use your personal information. It is important that   you read clause 4 of the terms and conditions before you sign.       We may send   you information about products of ours and others which may be of interest to   you. We may also pass your details to other selected businesses to enable   them to send you information about their products.       You have a   right at any time to stop us from contacting you or giving your details to   others for these purposes.       If you wish   us to stop, please tick this box                   







     CANCELLATION   RIGHTS       

     You have a   right to cancel this Agreement for 14 days, beginning with the day after this   Agreement is signed by Us. You may exercise this right by sending Us written   notice. Please see clause 2.1 of the Terms and Conditions for more   information on your right to cancel.       









     Terms   and Conditions       

     1.1   We will pay the Amount of Credit   (as set out in the section headed "Key Financial Information") into   a bank account nominated by You. You confirm that your salary was paid last   month, and will be paid on the Payment Date, into the bank account (“the   Account”), identified in your application to Us and in the Bank Details sent   to You with these terms. You will ensure that sufficient funds are available   in the Account to repay us the Total Amount Payable.       1.2   You agree to pay Us the Total   Amount Payable on the Payment Date, and You grant us permission to debit that   sum from the Account using either a cheque or debit card provided by   yourself, or a standing order set up by yourself at our option. You are responsible   for ensuring that any Payments sent to Us by post reach us in time for the   funds to be paid into your account and clear on Your account by the Repayment   Date. Please note - there is a possibility that taxes or costs may exist that   are not payable by Us or imposed by Us.       2.1   You will have a right to cancel   this Agreement for 14 days, beginning with the day after this Agreement is   signed by Us. You may exercise this right by giving us notice in writing by   sending:       (i) a   letter to Us at MEM Consumer Finance Limited at PO Box 255, Bicester,   Oxfordshire OX26 4ZY;       (ii) a   fax to Us. Our fax number is 0845 127 4365; or       (iii) an   email to Us. Our email address is [email protected].       If You   cancel the Agreement after we have made the advance, You will still be   required to repay the Amount of Credit. If You do not exercise this right to   cancel, You will still be able to settle this loan at any time prior to the   Payment Date. You can settle this loan by paying the outstanding balance that   is due and payable in full less any rebate which may apply under the Consumer   Credit Act 1974.       2.2   By signing this Agreement You   request us to make the advance prior to the expiry of the cancellation   period, although You acknowledge that we are not under an obligation to do   so.       2.3   If You cancel this Agreement:       (a) As   soon as possible and in any event within 30 calendar days from the date on   which You notified Us of the cancellation, we will refund any sum paid by or   on behalf of You.       (b) You   must refund any sum paid by or on behalf of Us under or in relation to this   Agreement.       (c)   However, we can charge You for services actually provided by Us in accordance   with the terms of this Agreement.       3.1   This Agreement is unsecured.       3.2   If we do not enforce our rights   under this Agreement at any time we will not be prevented from doing so   later.       3.3   Any notice or demand we give   will be assumed to have been properly given if served on You personally, or   left or sent by prepaid envelope addressed to You at your current address or   last known business or private address. If sent by first class post it will   be assumed to have been received by You 48 hours after posting.       3.4   You grant us permission to   contact your employer named in your Employment Details at anytime as may be   reasonably required by Us.       3.5   We may transfer all or any of   our rights under this Agreement.       3.6   We are registered at Companies   House under number 04786727. Our main business is consumer lending and we   provide short term credit facilities to debtors in return for the repayment   of the credit and the payment of interest. We are authorised by the Office of   Fair Trading, and our Consumer Credit Licence Number on its register is   539935.       3.7   If You have a complaint, we will   investigate it and give any redress to which we feel you are entitled. If You   are not happy with our final response, You may have a right to have your   complaint dealt with under the Financial Services Ombudsman Scheme, South   Quay Plaza, 183 Marsh Wall, London E14 9SR or telephone 0845 080 1800 or 020   7964 0500. To do so, You would need to notify the Scheme in writing within 6   months of our final response.       3.8   The law of England and Wales is   taken by us as a basis for the establishment of relations with You prior to   the conclusion of the Agreement, and governs the Agreement. The contractual   terms and conditions, and the prior information, are in English. We undertake,   with your agreement, to communicate with You in English during the duration   of this Agreement. This Agreement shall be construed according to the laws of   England and Wales whose courts shall be the exclusive courts of jurisdiction.       4   Use of Your Information       In   considering whether to enter into this Agreement, we may search your record   at credit reference agencies. They will add to their records about you,   details of our search and your application and this will be seen by other   organisations that make searches. Our search of records at credit reference   agencies may be linked to your spouse/partner, or other persons with whom you   are linked financially. For the purposes of any application or this Agreement   you may be treated as financially linked and you will be assessed with   reference to "associated records".       We may   also add to your record with the credit reference agencies details of your   agreement with us, the payments you make under it and any default or failure   to keep to its terms. These records will be shared with other organisations   and may be used and searched by us and them in order to:       
     Consider   applications for credit and credit related services such as insurance for you   and any associated person;       Trace   debtors, recover debts, prevent or detect money laundering and fraud, and to   manage your accounts.       
     It is   important that you provide us with accurate information. We may check your   details with fraud prevention agencies and if you provide false or inaccurate   information or we suspect fraud, this information may be recorded. Fraud   prevention agency records will be shared with other organisations to help   make decisions on credit, motor, household, life and other insurance   proposals or claims for you and members of your household.       Please   write to us at our address stated above, or telephone us on 0871 271 6111 if   you require details of the credit reference agencies or any other agencies   from whom we obtain, and to whom we pass, information about you. You have a   legal right to these details. You have the right to receive a copy of the   information we hold about you if you apply to us in writing. A fee will be   payable.

[StudentInTrouble]

£600 for 14 days costing £150

OUCH man.

Unless youre in mortgage arrears, I wouldnt bother!

[ianandemma]

Thanks - I cant believe they can legally charge 33653% then say they are charging 25% per annum in the credit agreement - Is this possible?