Interest Rates

hampshire2

I have just received a letter from HFC bank stating I owe the Over £7000,00 in acrued Interest I took a loan out in 1996 for 120 months and have paid back £38000.00 now they want another £7000.00 on top

help needed

Robert_Sterling_3

How much was the loan for, what was the interest rate applied to the loan, what was the monthly repayment etc.

hampshire2

the loan was for £12500.00 payed back at £255.00 per month for 120 months they have said it is because i missed some moths payment

aj2703

How many payments did you miss..?. By my reckoning you have paid over the amount anyway. 255x120 = 30600. You have already paid 7.5k over the limit, so howcome they want the same amount again..?.

Robert_Sterling_3

You did not say what the interest rate was.

I calculate it to be 23.8756% which may be abbreviated to 23.9%

With this rate of interest you would have been scheduled to pay a total of

£30,600.

Made up of £12,500 loan £18,100 interest.

You say that "they say you missed some months payments". What do you say?

hampshire2

I have missed some payments along the way but saying that the loan was up to date. if i owed payments they would have informed me

Robert_Sterling_3

What do you mean when you say it was up to date? When was it up to date?

jonesMUFCforever

How can it be up to date if you missed some payments??