Capital Finance One/ CFO Lending

[paydayloanwonderer]

This company has recently hiked its already MASSIVELY higher than any other company's interest rates!!!

 

It now costs 49 pounds to borrow 100, and they are trying to make anybody who rolls over their loan pay this rate.

 

This is the worst I have ever seen.

 

Can nothing be done about this? This is going to really really cause problems for people.

[Jamie Kingston]

disgusting - they must realise that they are going to be shut down... just dont pay it, which is something i wouldn't normally advise. I doubt they will take you to court on it, agree only to pay the original interest agreed, I assume around £30 per £100 and only pay them direct.

[renegadeimp]

Get full complaints into the OFT and the PDL itself. People need to start complaining LOUDLY about them to get things rolling. Also, maybe an email to stella creasy will help out.

[bluemozzer]

Get full complaints into the OFT and the PDL itself. People need to start complaining LOUDLY about them to get things rolling. Also, maybe an email to stella creasy will help out.

 

Unfortunately as with any company, they will just re-invent themselves under another name. What needs to be done is sort out the whole parasitic industry!

 

As for CFO lending, they are one of the the worst i have come across. Not only do they charge 49% interest on any capital borrowed, should you be desperate enough to want to accept an offer to top up then they add your top up to the original loan (including 49%) and then add another 49% interest.

 

For example;

 

original loan £100 + 49% interest = £149, Top up £100 + £149 + 49 % Interest = £371.01

 

Therefore you have borrowed a total of £200 in that month and having to pay back £371.01 which equates to added interest of 85.5%.

 

I think this is scandalous.

[renegadeimp]

49% is nothing. Some PDL's charge 5000% although not in one go, some even go into the tens of thousands APR.

 

 

Everyone here fully agrees that the interest must be capped. There was even a debate in parliament about it a short while ago, but the conservative government were too toothless ( or being paid off) to change the law to give us a flat cap like the rest of the word has.

[bluemozzer]

49% is nothing. Some PDL's charge 5000% although not in one go, some even go into the tens of thousands APR.

 

 

Everyone here fully agrees that the interest must be capped. There was even a debate in parliament about it a short while ago, but the conservative government were too toothless ( or being paid off) to change the law to give us a flat cap like the rest of the word has.

 

Obviously i am quoting monthly percentage rate, 49% monthly equates to 588% AER. The APR's are hard to work out as it depends on term of loan though the APR for the above would be astronomical.

Most payday loans are normally 25-30% monthly which is scary enough, CFO are way above this.

[renegadeimp]

I agree, but as i said, some lenders are charging in the thousands APR. Some in the tens of thousands which equates to a much higher monthly interest fee.

[bluemozzer]

I agree, but as i said, some lenders are charging in the thousands APR. Some in the tens of thousands which equates to a much higher monthly interest fee.

 

The Apr rate for CFO will be in the high 10's of thousands (50K+) if i could be bothered to work it out. Paying back £49 for every hundred borrowed is the highest i have seen as i said earlier most are £30 for every hundred which is obviously 30% fixed.

Though the main point i was making originally apart from the excessive interest is the way the charge you interest on the interest on top ups which sends the interest rate through the roof.

[chowlett]

I've emailed watchdog this company have scammed and stole off thousands of people wether they took out a loan or not.... it needs to be stopped.... i think if monies are took off ur card from any pdc banks should call inform u I've been left in alot of debt.... its a sad state of affairs.... i wonder how many other companies have done this or how many other companies are really cfo....

[Mat1983]

disgusting - they must realise that they are going to be shut down... just dont pay it, which is something i wouldn't normally advise. I doubt they will take you to court on it, agree only to pay the original interest agreed, I assume around £30 per £100 and only pay them direct.

 

 

Has anyone noticed that there APR has gone up YET AGAIN to 11,873% these crooks need to be shut down , I borrowed £150 and then unfortunately entered DMP so I told CFO and they said that they were going to co-operate with them but 4 months later they have sent my an over inflated balance of £650, I have made endless phone calls and sent endless emails and they never answer , they don't even answer there telephones , JUST A BUNCH OF CROOKS

[renegadeimp]

Unfortunately they can charge whatever interest they like as theres no cap set by government or the regulators.

 

It may be immoral to charge that much but it certainly isnt criminal.

[Nao]

Unfortunately they can charge whatever interest they like as theres no cap set by government or the regulators.

 

It may be immoral to charge that much but it certainly isnt criminal.

 

There is evidence to suggest that they actually change the interest rate whenever they please even on existing credit agreements:

 

Quote from here: http://www.consumeractiongroup.co.uk/forum/showthread.php?365454-CPO-Lending&p=3981778&viewfull=1#post3981778

 

He further advised that the £27.30 was a charge because I had not told them that I wanted to rollover for another month and they basically didn't know what to do??? I asked why the £144.55 had been taken instead of £117 and was told that the interest rate had gone up and I would have received letters and emails - I did not receive any!!

[renegadeimp]

yep. Normal trick for a PDL to do. They hope you wont notice it, or will believe whatever they like. If they change it mid contract, then you need to make a full complaint, as the interest rate isnt the one you agreed to upon signing the agreement. If it was allowed, then they could advertise a rate of 400% per annum, then change it mid contract to 16000% with no repercussions.

[Waratah]

The Apr rate for CFO will be in the high 10's of thousands (50K+) if i could be bothered to work it out. Paying back £49 for every hundred borrowed is the highest i have seen as i said earlier most are £30 for every hundred which is obviously 30% fixed.

Though the main point i was making originally apart from the excessive interest is the way the charge you interest on the interest on top ups which sends the interest rate through the roof.

 

It's their "top up loan" that is sending people over the edge. If you accept their kind offer to increase your loan they will basically settle your current loan including one months interest then issue a new loan for that total including the top up.

 

So if you get a loan of £200 you will have to repay £298 on your pay day. Sometime between receiving the loan and your pay day they will offer to increase your loan by £100. The day you accept they will settle your outstanding loan of £200 plus interest of £98 and issue a new loan of £398 of which you will recieve £100. On your pay day you will have to pay them the £398 you borrowed plus one months interest which would total £593. So that extra £100 will cost you £195. In effect they are offering you a £100 loan for a week or so as long as you pay them back £295.

 

Clearly most people will not be in a position to pay off the loan and will either roll over the loan at a cost of £195 or default. They do not want you to repay the loan. They want to get you to roll over the loan. The stories of people rolling over loans for months are all over the internet.

 

If you cannot pay off the loan and have no prospect of doing so tell them by letter and email and offer to pay them monthly payments at a reduced rate. They will turn you down so then just don't pay anything. Make sure your wages are paid into a different bank account and do not apply for any payday loans with anyone else. Pay down your other debts as much as possible. After a few months contact them and ask for a settlement. Get their account details and pay them by standing order or the faster payments system. Do not give them your new card details.

 

They will want more than £593 but stick yo your guns and tell them you will pay it over 3 or 4 payments. Always back up everything you discuss on the phone with an email seeking confirmation of what you have told them and agreed to. Don't pay a penny unless you have replies.

 

Forget about complaining to the OFT. Just pay them but don't roll over the loan and don't agree to pay them more than the loan plus a months interest.

[roxy2010]

The latest thing they are doing is sending emails out calling themselves CFO Resolve offering to put your loan back to the original amount and then offering you more money. My loan is now over £500 with them the original amount was £200 tried to sort it out with them over the last 18 months and got nowhere. I certainly aint going to borrow more money off them I still say its another of their ploys to get your bank details and fleece your account.