Anyone Heard of Text Loan? Are They OK?

[gordie1]

I have just borrowed £100 from text loan for 15 days got a payment date and I have the money to pay them back on the date. Can they or do they take money from my account without permission before then and after I pay the loan back at the rate. I pay back £117 in 15 days not too bad I dont think .Any experience of them anyone?

[dr b]

17% for 15 days is an effective annual interest rate of 4,462%.

[sandyRoe]

They've robbed you already with that high interest rate. They'd hardly do it again by taking money from your account.

[Twenty20]

Annual interest rates are pretty much irrelevant on such short lengths of time. How much do you think they should charge? Bank of England rate is 0.5%, work that out for 15 days and I think you'll find why the interest rate is so much higher. Not sure £17 would even cover the cost of credit checking someone plus the admin.

Sorry OP, can't help with your query though.

[factor-fiction]

I pretty much agree with Twenty20- the cost seems fairly competitive for this sort of short term low value loan, and can be a less expensive option than going into an unauthorised overdraft or defaulting on bills such as credit card bills. Having said that, such loans should be a last resort of course and sadly those that take them out usually then end up in the same position soon afterwards or can fall behind with repayments and can get into a spiral of debt.

[JORO27]

I don't think they will go for the money before the date they have given or after that if they are a reputable short term lender, but please please make sure the money is there for them as this is when its starts getting out of control! they add charge after charge and interest on those charges! If you have set the payment up through your debit card and they keep trying to take payment , cancel the card with the bank.

[jessicadavid]

they can't take your money like that, I think they'll be sending a notice to you or will make a call to you and inform you about problem or payment due etc.