Colin
Member
Registered: 4th Apr 02
User status: Offline
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Im a bit confused here, should I be?
Ive had a settlement figure for a loan ive got, it was over 3yrs, ive paid exactly a year. Ive to pay £2794.45 to settle in full.
My monthly payments are £132.14. Ive paid for 12 months - £1585.68 has been paid.
On my loan agreement is states:
Loan amount £4000.00
Total amount you pay (inc interest) £4757.04
Charge for credit £757.04
What Im confused by is if I settle i'll have paid £4380.13, of which 380.13 is interest - im settling 2/3's of the loan term early but apear to have already paid more then half of the credit charge off.
Says on the agreement theres no product fee or early settlement charge
ps
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AndyKent
Member
Registered: 3rd Sep 05
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Who told you you've got to pay nearly 2800?
Technically:
you borrowed 4000 + 757 charge = 4757
repaid to date 1585 = 3172 outstanding
minus the interest which would be paid over the remaining term = 504
So, you should only repay 2668
I think.....
[Edited on 30-12-2008 by aPk]
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Colin
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Registered: 4th Apr 02
User status: Offline
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I phoned up & thats the settlement figure they gave me, I was back off the phone before I had a chance to think hang on that sounds a bt off!!
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AndyKent
Member
Registered: 3rd Sep 05
User status: Offline
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I'd get back on the phone and ask why its £100 more than you were expecting - they might explain how they got to that figure.
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Eck
Premium Member
Registered: 17th Apr 06
Location: Lundin Links, Fife
User status: Offline
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Who is it with Col? If it's with HBoS... Our policy is upto 60 days of interest charged on a Settlement Figure. Also, our loans don't seem like they add up  See your loan. if you took £4,000, and paid off £1,000... The outstanding balance won't be £3,000. It'll be something like £3,800 That's because the interest is front loaded, so most of the interest is being paid off, and only a small part is going to the capital until the interest is paid off and then you're full payment will start eating away at the Capital.
So basically... If you don't pay off your loan before any interest is added (basically first 30 days), you're going to end up paying an arm and a leg more than you should have to pay it off unfortunately 
Edit: Ps, if it is a HBoS loan, I should be able to find out if the settlement figure you have is correct if you give me your details 
[Edited on 31-12-2008 by Eck]
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Colin
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Registered: 4th Apr 02
User status: Offline
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Yeah it is HBos
Cunts didnt tell me this when they sold me it......fuck faces!!
[Edited on 31-12-2008 by Colin]
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Eck
Premium Member
Registered: 17th Apr 06
Location: Lundin Links, Fife
User status: Offline
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Ouch I'm not in again until the second, but if you want I'll have a look for you? But I need to know... Your agreement number, does it start with 7/ number? If not there isn't much I can do really
But as I said earlier, you get charged upto 60 days of interest....That apparently isn't a penalty
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Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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Badgers 
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Colin
Member
Registered: 4th Apr 02
User status: Offline
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7/12254209- 3
Bloody cheek, doesnt mention this in my agreement!!
Find me a way of getting out of paying the interest Eck!!
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Eck
Premium Member
Registered: 17th Apr 06
Location: Lundin Links, Fife
User status: Offline
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I'll have a look at that on the 2nd Aye they don't mention that you are paying off the interest first, so if you try to settle it, you're not making a saving Probably the only way to get out of paying the interest would be to lodge a complaint, stating that you were mis-sold the product as you weren't made aware of the 60 days of interest, and front loaded interest. If you kick up enough shit, they'll take it off 
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stubbsy05
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Registered: 23rd Oct 02
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My A&L loan was interest front loaded and I ened up paying it off after 4 months when it was originally for over 4 years :loL:
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