car loan at 19.9 apr

bigstevex

Trading standards should keep it on record for future use if they get similar reports about the same garage!

Robert_Sterling_3

The car loan was an amount £3,499.
The interest rate actually charge was intended to be 19.9%
Using this figure the monthly payment should be :-

48 payments each of £175.17

Lenders deal with the "missing " 7p in various ways
Usually by having a minor adjustment to the first payment.

A stated interest rate of 19.9% can hide a more accurate hidden interest rate of any thing up to but not including 19.95% in mathematics but I suspect that in the Consumer Credit Act of 1974 it allows the percentage to be truncated ( i.e. cut off ) after the first decimal place. That would allow 15.99% to be expressed as 15.9%.

However as has been said by earlier posters in this thread the number given by the lender here was NOT the APR.

The interest in the first year was in the region of £510.86
The interest in the second year was in the region of £194.28

I use "in the region of" because the amount paid in total is not a neat multiple of 24 and there is an odd 7p in my calculations.

Gorgeous_George

It will not be an 'honest' mistake.

You've been charged an APR of 34.5%.

GG

Robert_Sterling_3

From the information supplied it is possible to say that the APR was not the number quoted by the lender.
It is not possible to calculate what the actual APR was as we are not given enough information to do so.
We need to know "Was there any PPI" and if there was PPI was it compulory or was it optional etc.

~Brock~

Robert_Sterling wrote: »

From the information supplied it is possible to say that the APR was not the number quoted by the lender.
It is not possible to calculate what the actual APR was as we are not given enough information to do so.
We need to know "Was there any PPI" and if there was PPI was it compulory or was it optional etc.

As long as we know the amount borrowed, the monthly payment and the term then the APR can be calculated. As I mentioned earlier the APR was 40.52%.

I take the point about whether PPI was compulsory, but have assumed it wasn't, and would be very surprised to hear of anyone making PPI compulsory nowdadyas, although I do not deny that it is possible.

If the dealer has acknowledged the mistake and amended the contract then that is good. It is obviously open to debate as to whether the contract should have been replaced with an entire new one, but I suspect that a court would rule in favour of the dealer based on the actions so far. This is a post April 2007 agreement remember.

Robert_Sterling_3

Yuu might be entitled to say that the APR was at least 40.5%.
The Consumer Credit Act requires that the APR is given to one decimal place.


P.S. Brock : In my opinion your post which brought about the splendid reduction in the OP's monthly payments is the one of the most useful posts I have seen on MSE for a long time.

~Brock~

Robert_Sterling wrote: »

Yuu might be entitled to say that the APR was at least 40.5%.

The Consumer Credit Act requires that the APR is given to one decimal place.

You may indeed describe it as 40.5% APR, but to describe it as 19.9% is just a bit too wide of the mark :rotfl:

denibabe

hi to all just to clarify there wasn't any insurances on the agreement if there were he wouldn't of ammended the paperwork, on my agreement it said car £3499 then £1392.60 interest ,then 24months at £203.84,then underneath it says 19.9 APR . the purchase price of the car was £5199 less £1300 part ex for my car, and £400 cash deposit i gave ,on the agreement it doesn't mention the part ex or the deposit, trading standards want to look at my agreement which i am taking tomorrow for them to check it, i photocopied my agreement before he altered it so i could prove to TS what the thief was up to.:mad: i will keep you all informed.

Robert_Sterling_3

I very much look forward to the next installment.

denibabe

hi all, i have left the paperwork with ts to check and they said i may need a solicitor so i got in touch with a company who specialise in unenforceable agreements they said its very likely on what i have told them that i may have a case and if i do, it will be based on a no win no fee .