have i been conned.

[ghostspirit]

not sure if i have been conned or if im just being a bit thick. i had a loan. but still owed 150 pounds on that loan. I was told i could have another loan of 500. but i have to use that to pay back the remaining 150 on the old loan, so leaving me with 350.

so now interest and weekly payments are based on 500.

should i have been asked if i wanted to borrow 350 rather than the 500.

but then if my balance has to be zero maybe that was the only way round it.

anyway something does not seem right. maybe it is right and im just being a bit thick.

so i borrowed 500. ended up with 350 due to owing 150 to clear old loan. and now my total repayment will be 945.00

[ClawHandsIfYouBelieveInFreaks]

Did you use a payday lender OP? You need to speak to National Debtline or the CAB.

[Wombat22]

445.00 interest [shocked] oh my word. It worked out till I saw that

[Wombat22]

*

[ShakeYourTailFeathers]

the amount you borrowed and the loan now being based on 500 sounds ok - but that interest is criminal.

[AttitcusFinchIsMyFather]

Yes, they have charged you interest on the £150 twice

[ghostspirit]

its with provident

[ShakeYourTailFeathers]

well to be fair she has borrowed the 150 twice - once initially, and then again to pay it back...

[ShakeYourTailFeathers]

so yes that's a con isn't it (i'm being thick)

[ghostspirit]

shakeyourtailfeathers. thats confused me lol. is what they have said right or am i being charged more than i should be :/

[ShakeYourTailFeathers]

You would think they could just extend the initial loan, but the way they did it gets them more interest. Bastards.

[ghostspirit]

i have a cooling of period of 14 days then have to make sure i pay within 30 of letting them know. they said i have to pay the full 500 back. but as i said 150 of that has been used to pay the old loan. so do i contact them say i can only pay 350. and then continue to pay them weekly for the remaining 150.

or do i tell them i need to take the 150 back from the old loan so i can give them then 350 so that would be the 500. and then i continue to pay of my old loan as i was before

[ShakeYourTailFeathers]

can you just cancel the extra - in the cooling off period? So go back to owing 150 and then get that paid asap

you need to get away from them - they are charlatans

[ilovesooty]

I think you need some proper financial advice.

[2minsofyourtime]

Can you return the money (350) and use a credit card for (150) then use the 94 per months for 2/3 months and pay that off would work out cheaper

[ghostspirit]

i dont have a credit card, ilovesooty i new the intrest was quite high. its because i get it in my head of oh 15.00 a week that i have to pay. at least xmas is sorted. i dont normally allow myself to look at the interest to much because its depressing. really think i might just give it back. got to stop being such a mug.

[BlackDaisies]

Yes, you have been conned because the way they are setting this up gives you NO option to cancel. However I'm sure this cannot be legal because everyone is entitled to cancel. You need to word a very clear letter that you do not want this loan. That they can take their 500 back with your 350 and that they immediately take the other 150 from the cleared loan. Tell them very clearly that this returns their 500 and that you will pay the first loan off as before. Explain that they have no right to clear your first loan within the cooling off period as you are absolutely within your rights to cancel, meaning they do not have the right to permanently allocate it to another payment.

[MrsPiggie]

You borrowed 650, you paid back 150 so the balance is 500, on which you pay interest. It sounds fine. They could have given you the full 500, in which case you would have paid interest for 650. Unless the interest rate differs depending on how much you borrow there's no difference. The interest rate is a different story, that is absolutely criminal.

[TakeMeUpTheNorthMountain]

I've been in with provident before, it sucks open, it's a never ending cycle. I told the collector today I'm paying him off next week and he was really agrees e when I said we wanted no more loans.

I would go to him and tell them you have changed your mind,revert your 500quid loan and pay off the 150.

Is the interest high in uk? In Ireland, 500 Euro would be 625 to pay back?

[TakeMeUpTheNorthMountain]

Aggressive when I said....that should read

[ilovesooty]

This debt will end up as a never ending burden unless you put a stop to it. That's why the interest rates are in the small print. Is Christmas really worth putting yourself through that?

If you're having financial difficulties please talk to someone reputable like Stepchange.

[ghostspirit]

mrspiggie that has confused me more lol. i borrowed 500 tonight and 150 of that was taken to pay the remaining of an old loand. so leaving me with 350 :/

[Vikingbiker]

You're going into debt to pay for Xmas?! Are you mad?!

[ghostspirit]

well its not just about xmas... its because im trying to raise 500 so that i can keep my dog in the house. and that has a knock on effect to everything else because its so close to xmas. and when it comes down to it i cant make the kids go without.

The dog situation is that the agency said i could have a dog verbally. so i have no proove. Then there was an issue because i refused to do repairs that were not down to me. i got environmental health to proove it. so then they were going to evict me. because i would not pay for repairs. so when council asked them why they were evicting me. they said it was because of the dog. when it was not as the said verbally i could have him. it was done in spite because of the repairs. now the agency have said i can have the dog if i pay 500 as a form of deposit. and we will have it in writing.

[ghostspirit]

sorry i did not mean to do repairs i meant to pay for

[Darquesse]

Imagine that they gave you 500 and you immediately handed them back 150 to clear your original loan. That is what has happened. So you will pay back the whole £500 + interest. Otherwise if you just had to pay back £350, you would still be paying off the original £150 loan at the same time making your payments more expensive.

If you struggle to get mainstream credit I would suggest looking into your local credit union. Much better and they encourage you to save regularly too.