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  • FIRST POST
    • GrantLee80
    • By GrantLee80 8th Jul 17, 9:15 AM
    • 2Posts
    • 0Thanks
    GrantLee80
    118 118 loan
    • #1
    • 8th Jul 17, 9:15 AM
    118 118 loan 8th Jul 17 at 9:15 AM
    Hi there,

    I took out a loan in May 2017 with 118 money for £4,153 (31%APR) This was a two year loan, however I am able to pay it off now. I have made two payments of £232. On calling 118 yesterday I was told the Early Settlement figure would be 4000.66 ??? I am confused that I have paid £464 and yet only paid 153 in two months. Also the account shows I owe 5400 ?? The caller stated the ESF is based on this figure and that I will be charged 58 days interests which it does state in my contract. However I am confused

    1. Why they class me as owing 5400, are they able to calculate this way ?
    2. How can I save as much money as possible

    I have put in a complaint and contacted the FO.

    Please hellppppp !!!!!
Page 1
    • zx81
    • By zx81 8th Jul 17, 9:19 AM
    • 12,709 Posts
    • 12,952 Thanks
    zx81
    • #2
    • 8th Jul 17, 9:19 AM
    • #2
    • 8th Jul 17, 9:19 AM
    They're correct. Most of your early payments go on interest.

    The 5400 figure is if you let the loan run full term.

    Save money by paying it off ASAP.

    Hope that hellllpps.
    • MABLE
    • By MABLE 8th Jul 17, 10:29 AM
    • 3,273 Posts
    • 1,745 Thanks
    MABLE
    • #3
    • 8th Jul 17, 10:29 AM
    • #3
    • 8th Jul 17, 10:29 AM
    Not sure if this is the same thing but a few years ago I took out a loan with Lloyds. I wanted to pay early so if the balance shown was £5000 I would pay in £4999 and then ask for the settlement figure and this was based on the outstanding amount.
    • GrantLee80
    • By GrantLee80 8th Jul 17, 10:31 AM
    • 2 Posts
    • 0 Thanks
    GrantLee80
    • #4
    • 8th Jul 17, 10:31 AM
    • #4
    • 8th Jul 17, 10:31 AM
    Thank you, is there a way u can get away with not paying the ESF ?? I was thinking of paying £3500 as a lum sum ?? Then paying the rest in a further 3 payments ???
    • zx81
    • By zx81 8th Jul 17, 10:58 AM
    • 12,709 Posts
    • 12,952 Thanks
    zx81
    • #5
    • 8th Jul 17, 10:58 AM
    • #5
    • 8th Jul 17, 10:58 AM
    That may work.
    • dresdendave
    • By dresdendave 8th Jul 17, 1:06 PM
    • 615 Posts
    • 690 Thanks
    dresdendave
    • #6
    • 8th Jul 17, 1:06 PM
    • #6
    • 8th Jul 17, 1:06 PM
    Hi there,

    I took out a loan in May 2017 with 118 money for £4,153 (31%APR) This was a two year loan, however I am able to pay it off now. I have made two payments of £232. On calling 118 yesterday I was told the Early Settlement figure would be 4000.66 ??? I am confused that I have paid £464 and yet only paid 153 in two months. Also the account shows I owe 5400 ?? The caller stated the ESF is based on this figure and that I will be charged 58 days interests which it does state in my contract. However I am confused

    1. Why they class me as owing 5400, are they able to calculate this way ?
    2. How can I save as much money as possible

    I have put in a complaint and contacted the FO.

    Please hellppppp !!!!!
    Originally posted by GrantLee80

    Now that the situation has been explained to you and you've realised 118 have done nothing wrong, perhaps you should contact the FO to withdraw your "complaint" so they don't waste resources on a wild goose chase.
    • Shakin Steve
    • By Shakin Steve 8th Jul 17, 2:25 PM
    • 881 Posts
    • 639 Thanks
    Shakin Steve
    • #7
    • 8th Jul 17, 2:25 PM
    • #7
    • 8th Jul 17, 2:25 PM
    As far as I can see, your loan should run till May 2019. If you pay it off before the, you have paid it off early. I don't see why people expect the rules to be changed just for them, early settlement fees exist on almost every loan.
    I came into this world with nothing and I've got most of it left.
    • PeacefulWaters
    • By PeacefulWaters 8th Jul 17, 2:27 PM
    • 6,722 Posts
    • 8,263 Thanks
    PeacefulWaters
    • #8
    • 8th Jul 17, 2:27 PM
    • #8
    • 8th Jul 17, 2:27 PM
    What's it got to do with the Foreign Office?
    • iolanthe07
    • By iolanthe07 8th Jul 17, 2:47 PM
    • 4,840 Posts
    • 4,567 Thanks
    iolanthe07
    • #9
    • 8th Jul 17, 2:47 PM
    • #9
    • 8th Jul 17, 2:47 PM
    This comes up regularly. So many people just don't seem to understand how loans work. OP, in the early stages almost all the payments go towards interest, with very little coming off the principal, especially with an eye watering interest rate of 31% APR. Only in the later stages of repayment will you see large monthly reductions in the principal. If you settle early, allowamce will be made, but there is often a one or two month penalty.
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • Sncjw
    • By Sncjw 8th Jul 17, 6:54 PM
    • 1,399 Posts
    • 845 Thanks
    Sncjw
    Fo is Financial ombudsmen
    • MABLE
    • By MABLE 8th Jul 17, 10:41 PM
    • 3,273 Posts
    • 1,745 Thanks
    MABLE
    Fo is Financial ombudsmen
    Originally posted by Sncjw
    There was I thinking Boris was going to be involved.
    Last edited by MABLE; 08-07-2017 at 10:51 PM.
    • PeacefulWaters
    • By PeacefulWaters 9th Jul 17, 12:17 AM
    • 6,722 Posts
    • 8,263 Thanks
    PeacefulWaters
    Fo is Financial ombudsmen
    Originally posted by Sncjw
    And there was me thinking FOS was financial ombudsman service.
    • pvt
    • By pvt 10th Jul 17, 6:47 AM
    • 1,331 Posts
    • 1,062 Thanks
    pvt
    Thank you, is there a way u can get away with not paying the ESF ?? I was thinking of paying £3500 as a lum sum ?? Then paying the rest in a further 3 payments ???
    Originally posted by GrantLee80
    Is it worth it? My quick calculation suggests the ESF they're charging is less than a £100 anyway.
    Optimists see a glass half full
    Pessimists see a glass half empty
    Engineers just see a glass twice the size it needed to be
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