Charges on payday loans

[gravytrain]

Re: Charges on payday loans

I think the problem may be that some of the agreements are actually a credit limit that you can take payments on repay and then take on again, so just like a credit card.
I suppose what is needed is legal opinion as to if a fixed term 1 or 2 month agreement that specifies interest can be added after the repayment date (if payment not made) is allowed. Lets not think about interest rates and charges at this time, just if the basic proposition is valid.
Where's a lawyer when you need one :-)

I am not a lawyer but I can tell you that it is allowed to charge post termination interest if the agreement mentions it just the same as it is allowed to charge post judgment interest.

I don't think that this would be the issue with PDL's, i think it would be more a matter of would the excessive rates of interest be fair or enforceable when applied over a longer period .

[gravytrain]

Re: Charges on payday loans

I wasn't aware of this sort of arrangement, I always thought PDLs were a fixed sum due on a certain date, where a given amount would become payable. Are there any PDLs out there that offer a revolving credit facility?
Not sure I understand this, what would be the difference between this and a rollover?

A rollover as I understand it is essentially a modified agreement under section 82 of the act. It takes the balance from the previous agreement and creates a new agreement.

A running credit or open ended account gives a credit limit and the debtor can draw down funds at any time, the terms of the agreement remain the same throughout the agreement

[FlamingParrot]

Re: Charges on payday loans

Me either :confused2:

Or me! No mention anywhere! :nono: :noidea:

In any case thinking about it, a default notice on a fixed sum loan that has exceeded its term is just a letter before action isn't it ?

The creditor is not asking for accelerated payments everything is arrears. If the DN was remedied there would be no agreement to reserect because it would be paid off.

That's right, unless it was a revolving credit facility as Jon mentioned above, I wasn't familiar with that type of arrangement, but I guess there may be a kind of credit facility that sits between the traditional personal loan from mainstream lenders and the typical PDL of less than 31 days, like P2P who advertise loans of up to 12 months, at an APR of just over 100%. Much lower than the average PDL APR of around 1700% :scared::scared::scared: but much higher than APRs on personal loans from mainstream lenders.

[FlamingParrot]

Re: Charges on payday loans

A rollover as I understand it is essentially a modified agreement under section 82 of the act. It takes the balance from the previous agreement and creates a new agreement.

A running credit or open ended account gives a credit limit and the debtor can draw down funds at any time, the terms of the agreement remain the same throughout the agreement

Are payday lenders offering such credit facilities?

[jon1965]

Re: Charges on payday loans

Txt loan do this (i think) as I think do the infamous minicredit (although I need to check that) If I have that wrong it is because I have misread the terms.
There was one company that would only ever take the interest payment but never asked you to sign a new agreement

A rollover is essentially a new loan with a new agreement. You pay the interest and repay the original loan with the new loan.

GravyTrain, thank you for answering my question. I do like to have the knowledge to shoot sillybitches down when they get it wrong.

[jon1965]

Re: Charges on payday loans

https://txtloan.co.uk/borrower-agreement

A credit agreement from textloans website

[jon1965]

Re: Charges on payday loans

? confused..i got an email saying there was a reply

[CleverClogs]

Re: Charges on payday loans

? confused..i got an email saying there was a reply

There was - a new user by the name of Calvert (?) decided to advertise payday loans.

The posting was reported and subsequently removed.

[jon1965]

Re: Charges on payday loans

How rude..we all know what a great idea payday loans are don't we. Complaints about them keep the Fos and OFT in business thus creating jobs and boosting the economy