Loan Interest

mollyhatchet

Just been to see about topping up a personnal loan. Horrified to be told that the payments i have made to date (4 years worth) have only just covered the interest on the loan and i have hardly made a dint in the capital.
I was not informed that the interest on the loan would be taken in this way when i took the loan out.
Is there anything i can do about it ?

P.S. I didn't consolodate it however they did offer me an additional loan at 33% interest ......*^@* cheek

latecomer

When you took the loan out there this should have been over a specified period of time and related payments to pay the loan back. What were the length and APR of the loan?

mollyhatchet

Loan taken over 8 years at 11.4%. There is also ppi on it which I am claiming back.

CLAPTON

do you have a written settlement figure?.. if not then best to get one

was it fixed interest

was there any PPI on the loan

was there any payment free period

any missed payments

who is the loan with

otherwise you should have paid off about 30% of the capital.

mollyhatchet

Loan amount = 11,483.81 of which 2,218.81 is ppi
taken over 84 months at 11.4% in Jan 2004 (fixed)
No payment breaks or missed payments
settlement figure is 7,670

CLAPTON

well, based on 11,483 then 7,670 seems rather high but that may be the effect of the PPI.

maybe its time to think about saving for things rather than paying so much interest.
do you really need a new loan?

mollyhatchet

Yeh Thanks for that Clapton.

rbscoundrels

mollyhatchet wrote: »

Just been to see about topping up a personnal loan. Horrified to be told that the payments i have made to date (4 years worth) have only just covered the interest on the loan and i have hardly made a dint in the capital.
I was not informed that the interest on the loan would be taken in this way when i took the loan out.
Is there anything i can do about it ?

P.S. I didn't consolodate it however they did offer me an additional loan at 33% interest ......*^@* cheek

You need to forward a section 77 request this will enable you to check the loans terms and conditions.