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Are Payday Loan Penalty Charges Illegal-Can you ask for them back if so.

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A newspaper report and Which claims they are.If proved to be, can people ask for them back.Or try to.

Template letters perhaps.As with the bank charges.Or am i rushing things.Any experts around.

Penalty charges of up to £30 for missing repayments on payday loans 'are illegal'


Legal experts at the consumer group Which? claim the penalty charges imposed by many of the firms are excessive and therefore illegal.


It has written to the highest charging firms warning them that its legal advice is that the fees are unlawful under the Unfair Terms in Consumer Contracts Regulations 1999 (UTCCRs).







We believe excessive default fees are unlawful - some lenders are charging people up to £30

Payday lenders must cut their high fees


We believe payday lenders are acting unlawfully by charging excessive default fees so we're calling on lenders to cut their high fees.

Ten of 17 leading payday lenders we looked at have default fees of £20 or more, and four charged £25 and above, with Wonga topping the table at £30.


Edited by tawnyowl
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I would imagine that you could reclaim them much the same way as Credit card default/penalty charges, TO. The OFT said in their decision of 2006 that whilst they were not going to say that £12.00 was acceptable (the amount charged by most credit card companies now) they would only take action if the charges were over that amount.

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Thanks for the post citizenB.

It would make my day if these legal loan sharks that target communities and people up and down Great Britain were challenged and made to pay back their rip off charges.

Who is first to fire off a letter to them.

And what would it say.

Who has a quill handy.

The lenders it seems have till 2015 the election year to carry on as normal.

It would be nice to fire a couple of warning shots across their bows.

At the moment they must be planning the way around the many regulations coming in.

And of course planning new stealth loans from the lepers of lending.To avoid the caps and the rest.And carry on draining the wealth out of communities.


Wonga say.

Wonga said its £30 penalty fee has been independently assessed by outside business consultants as a fair reflection of its admin costs.

A spokesman said: ‘We charge a one-off default fee of £30 on late repayments that reflects the additional costs we incur in collecting these loans. This charge has been independently assessed as reflecting these expenses.

Now who are the business consultants that have worked this out.

Are they paid by Wonga or sent in by someone like the OFT or FCA.


Time for them in my view to be challenged.

And the other legal loan sharks as well.Start with the biggest and see what happens.

You once again in my view do not need to look far to see what these charges do for their profits.

Do these companies want you to pay back on time or miss the payments a few times.

If there is a way to try and claw back some rip off charges from any of the companies hopefully going back years as in the Bank Charges, so much the better. including those in the last year who have done a runner after the OFT told many to clean up their act worth a try.They are getting away with ripping off and targeting the poorest communities and people of Great Britain.

And most of the money is never to be seen or spent here again transported over the Atlantic.,

I will try to find a suitable letter to send in the corners of the Consumer Action Group dust it off and bring it to this thread.May take a little time but there will be one.Unless someone beats me to it.Feel free to do so.:-)




Just wondering if any of you maths wizards out there know what the interest rate for Wongas loans in the UK cost compared to their new operations in South Africa .Probably the same you would think.Why do you want to know that you may think.Do not ask me,just been wondering if everything is equal.

Edited by tawnyowl
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