Citizen’s Advice asked the question. Mr Lender, a leading short-term loan provider, answered…

The question was asked “Are consumers getting a better deal after the payday loans cap?” The cap on payday loans may have been introduced over 18 months ago, but a recent report by the Citizen’s Advice […]

Why pay more than you should for a short term loan?

Surely as a customer borrowing money you should only pay interest on what you owe at the time, right? So as you pay part of your loan off, you owe less, and the interest payable comes down accordingly. Why should you have to pay interest based on the whole amount you originally borrowed, even though you don’t owe that now?