I borrowed £1700 months ago and have been paying £228 instalments each month, I checked through my emails for the loan to see how far I was through paying it off, and realized it has a 320% interest rate over 2 years so I have to pay back £5494 the loan agreement stated 9.3% interest in the "key points" but I didn't realize this was compounding each month. Can anyone advise on where to go from here?
Edit:
They actually have 3 different interest rates on the agreement:
A simple fixed interest rate of 111.6% per annum,
320% apr and
9.3% monthly interest
Stuck in an awful loan (UK)
byu/craigdavidlindsay inpersonalfinance
Posted by craigdavidlindsay
3 Comments
Holy shit that’s predatory lending at its finest. Contact Citizens Advice ASAP – they deal with dodgy loans like this all the time and can help you figure out if this is even legally enforceable. That “key points” vs actual rate thing sounds sketchy as hell
Mate. Where the fuck did you get the loan? Law states the costs of a loan can only ever be as much as the loan itself.
You’re just not liable. Legally.
£1700? You owe £3400. The rest is a no.
Also what on earth did you borrow it for?
The world will take all your money if you let it.
You realise £228/m you could have saved £1700 in 7 months? Did you need that money right now? If it was owed to a company should have set up a payment plan. Or not paid and waited for court. And paid it late.
We all make financial mistakes, trust me. And many make your £3k look irrelevant. Don’t beat yourself up. But speak to someone. It’s not the end of the world. It’ll be forgotten about soon enough. Just learn from it.
https://debtcamel.co.uk/worst-loan-in-britain/
Have a look on the link I’ve posted, it’s with regards to Loans2go and the complaints procedure.
L2G are an absolute disgrace, I took a loan out with them a few years back and they bumped the interest rate after I had taken the loan. Managed to get it sorted eventually though after a lot of back & forth plus advice from Debt Camel.
Quick P.S.
I’m not affiliated with them, just had a bad experience same as OP and this helped me get it sorted. All the best OP.