First direct refunding my loan interest!!
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cinderella345
Posts: 20 Forumite
in Loans
Hi
Hoping someone might be able to help. Basically we have a loan with FD that is nearly paid off (11 months to go).
We took it out in Aug 2010 for £16,200 at 9.9% over 84 months.
We had a letter 2 weeks ago saying they sent incorrect annual statements from Aug 11 to August 14 - of which they supplied revised ones.
The letter also said they would refund all the interest we were charged between the date of the first incorrect annual statement (aug 11) and the date we received the new statements (10th September 2016).
So by my workings we should be receiving over 5 years worth of interest.
However we received a further letter this weekend saying they were refunding £510 to us.
Am I missing something - how can 5 years of interest only equate to £510. The total interest on the loan is just over £6000.
Can someone help? I've tried calling FD but you can't speak to anyone about it just request a breakdown in writing.
Thanks
Helen
Hoping someone might be able to help. Basically we have a loan with FD that is nearly paid off (11 months to go).
We took it out in Aug 2010 for £16,200 at 9.9% over 84 months.
We had a letter 2 weeks ago saying they sent incorrect annual statements from Aug 11 to August 14 - of which they supplied revised ones.
The letter also said they would refund all the interest we were charged between the date of the first incorrect annual statement (aug 11) and the date we received the new statements (10th September 2016).
So by my workings we should be receiving over 5 years worth of interest.
However we received a further letter this weekend saying they were refunding £510 to us.
Am I missing something - how can 5 years of interest only equate to £510. The total interest on the loan is just over £6000.
Can someone help? I've tried calling FD but you can't speak to anyone about it just request a breakdown in writing.
Thanks
Helen
0
Comments
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cinderella345 wrote: »Am I missing something - how can 5 years of interest only equate to £510.
Yes - you're missing the balance during that period and the interest rate you were charged. Without that, we can't know.0 -
Hi
The interest rate was 9.9% APR and the balance from Aug 2011 was £19336 and the balance at Aug 2014 was £9800. We pay £264 per month.
The letter does state that they will refund interest charged from August 2011 to Sept 2016.
Thanks
Helen0 -
The opening balance couldn't have been 19k - you only borrowed 16k in the first place.0
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Hi
Yes it was. They add the interest to the loan upfront so the opening balance was £22249.89
Thanks
Helen0 -
No they don't. Interest is added daily. They may display it in a way that shows the entire balance to b paid if it runs full term, but that was not your actual balance.0
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The only paperwork I have shows the balance with the interest added.0
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Then you'll need to ask them for your balance, month by month, over that period.0
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But still - if the total interest charged over 7 years was £6000 - surely we must have paid more than £510 in interest between 2011 and 2016.
Thanks
Helen0 -
It sounds low but impossible to say without accurate figures, whether overpayments were made, etc.
Ask them for you current balance - that will give more of a clue.0 -
That's what I thought. We made no overpayments just normal monthly payment of £264.89 since August 2010.
Our last payment is August 17. I've asked for a call back or a breakdown statement to be sent to me.
I was expecting 5 years of interest to be several thousand pounds not £500!!0
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