need advice please on a loan

crazy_chic

Not sure where to post this so forgive me if this isn't the right place,
this my first time of posting,
my o/h took out a loan in sept 2006 for £10,000 with the AA the other day just out of curiosity i asked him how much he still had left so he rang AA they told him he still owed £13,395.20, i nearly fell off my chair he has been paying this loan since 2006 at £239.20 a month he took it out over 96 months (why he did that i dont know) he took out insurance when he took the loan on, now my question is do you think he is paying too much per month for the loan? and paying back double what he borrowed doesnt sound right does it?? i dont no anything about loans so im at a loss

Blue_Diamond

What is the APR / interest he is paying on this? Something doesnt sound right here...

Robert_Sterling_3

We need to know.
Have all payments been made on time.
What interest rate is being charged on the loan ( Not what the APR is )
WAs insurance taken on the loan and was the cost of that insurance added to the loan.
Give us all relevant facts. Immediately or sooner if possible.

crazy_chic

hi all yes the payments r made on time every month the intrest rate was set at 9% fixed rate he did take out loan protection at the time of the loan, when he phoned them yesterday they told him that the intrest on the loan is £4661.00, they also told him that intrest is being added to the insurance

dumb_blonde

robert sterling hi does it make any difference if the cost of the insurance was added to the loan??

Blue_Diamond

Is your OH paying the mininium paymets only or more?

crazy_chic

he is paying the payments they said he had to pay when he took the loan out

CLAPTON

A loan of 10,000 over 8 years (96 months) at 9% APR fixed with no payment free period or missed payments would cost about 150 per month

So either the APR wasn't 9% or the loan insurance was very very expensive.
It may be possible to argue that the loan insurance was missold and get that refunded.

Can you check the original loan documents ?

crazy_chic

the APR is 9% they told him yesterday that the insurance is being charged intrest each month, we cant find the agreement so he has asked them to send him the original agreement

Blue_Diamond

Clapton is right, the loan insurance sound very expensive. I would call them to break this down to you, and cancel Payment protection etc and if your OH still wants it, find another good deal elsewhere. I would also claim this back.

Blue_Diamond

I would also look to transfer this loan to a 0% - or anything less than what your getting charged now