Is there a cutoff point for payday comps charges?

[AC1975]

I have one payday loan for £350 that's gone to £1200 in about 2 months. Is there a cut off point for interest/charges to be stopped or do they continue accumulating? will it end up at £5k?? And if they took me to court could I argue an 'excessive charges' point? I'm willing to pay the original loan + interest. thanks!

[Broke of London]

Hi and welcome! I don't know whether there's a limit to the interest they can apply or if you could legally challenge it - you did sign the contract. In your shoes, I would start repaying as much as possible as quickly as possible to minimise further interest. Do you have any other debt?

[nepensioner]

There isn't a cut off, but should be. How these companies can justify giving loans to people on benefits beggars belief.. and I certainly feel they are far from transparent with their charges.

[AC1975]

thanks.

the problem for me was that I missed repayment by a week but by then interest+charges had resulted in an extra £100 which i wasn't willing to pay. But then while in discussion with the company the charges kept on increasing. It's like hole kept getting bigger which is what they wanted. And now if I agree to repayment plan/dmp it'll have to be on £1200 not £350!! So i'm stuck in limbo - waiting for them to agree a mutually acceptable balance (i think initial balance + initial interest).

[Broke of London]

Are interest and charges still accruing while you negotiate? To be honest, payday loans companies aren't known to be helpful. You could try approaching someone like Payplan or CCCS who may be able to nevotiate a repayment plan for you. X