Right to cancel a payday loan - specifically Wonga

[DarrenAs]

Hi - hope someone can help. I'm just trying to get out of the payday loan cycle and have a query about cancelling loans... thanks.

 

Basically I know from threads here that many payday loan firms have a clause in their terms and conditions which states you can cancel your agreement within 14 days of the start date. Once you cancel, you then have 30 days to repay the full amount, plus a low daily rate of interest. For instance, these terms and conditions seem typical:

 

If You withdraw from the agreement, You will be required to repay to Us the credit, and any accrued interest from the date the credit was provided to the date of repaying it, without delay and in any event within 30 days of the day after the day that You gave notice of your withdrawal. If after 30 days the credit and the interest have not been repaid we will debit those sums from the Debit Card. The amount of interest payable per day is £0.66p

 

My question is specifically about Wonga. They only state on their website and in the terms & conditions they email you that have the right to cancel within 14 days. They don't make any mention of having 30 days to repay, or what level of interest they then charge per day.

 

Does anyone know the specifics? Is it likely to be the same deal - 30 days, plus a low interest charge? Or not?

 

Thanks very much - Darren

[26072004]

The 14 day cancelation then 30 days to return the money is the law.

 

all lenders payday or otherwise have to offer this, if the dont report them as the OFT could withdraw there CCA license

[DarrenAs]

Thanks for the reply. I wonder if anyone here has direct experience of this?

 

Does anyone know what daily interest Wonga charge after cancellation? Thanks

[26072004]

The daily rate must be on the credit agreement, but I thought Wonga charged 1% per day.

[Al88]

The 14 day cancelation then 30 days to return the money is the law.

 

all lenders payday or otherwise have to offer this, if the dont report them as the OFT could withdraw there CCA license

 

I did this with quid market and its 14 days to let them know and 28 days after the 14 days. Not 30 days

[DarrenAs]

Thanks. The Wonga interest rate after cancellation just doesn't seem to be on any terms & conditions I can see. Weird.

[ivansmagic.]

Its quite a tough one, cause if you phone or email them they will know what you are up to and will delay you as they know they wont make any money from you ( or minimal ). I guess you have to take the hit, repay the loan within the period and be prepared to pay what they charge. Given the maximum amount they lend its not going to cost you a lot of money. - lets just say it will be much cheaper than going past the cooling off period.

 

In my line of work, you have 14 days to cancel and 30 days to repay in full from the day the loan was executed (ie both parties have signed the agreement ) and nothing will be added. You only pay back what you borrowed. I would be surpirsed if it was different with a payday lender as it is all regulated by the CCA, but I may be wrong.