A colleague at work took a loan out with this company I don't know the figures but I just want to know if the way they have calcilated to loan is legal.
Say the loan was £100 at 50% over the month so at the end of February he owed £150 with the option to pay the interest of £50 only. He paid the interest and was offered a loan increase of £30 which he accepted. He was under the impression he would at the end of March owe £130 plus 50% in that sum. However they have told him he owes £180 + 50%. This means they have added the interest for March to the £100 plus the extra £30 then charged interest on that whole sum. Is this legal ?