What payday loan fees are there?
When you take out a loan, it is not uncommon for lenders to charge you money if you make a late repayment. Recent changes to the law have helped reduce the problems that can be caused by a late repayment, but you can still face penalties with most companies, usually by not being fully aware of payday loan fees.
The most you could be fined for a late repayment is £15, irrelevant of how late you are to repay. However, you can also be charged interest each day after the due date, until the date you repay the loan, which can cause the cost to rise considerably.
If you take out a loan, clearly it is best that you repay it on your due date, or earlier. However, the law now means that you will never be required to pay a total cost that is more than 100% of your loan. For example, if you took out a loan of £100, the maximum you would need to repay is £200. This is irrelevant of how late your repayment is, and this cost includes all fees and interest.
Payday loan fees used to cause huge problems for people who took out a loan, as it was quite common to roll over several times, thereby increasing the repayment costs. This led to the government changing the laws, such as limiting the number of times a loan can be rolled over.