Settlement figure

SL123

Hi everyone,

I am a bit confused with the settlement figure I have been given for my loan from Welcome, can anyone help?

Details 1st, I took out £3000 loan in Jan 2007, after insurance and etc added on it comes to a total of £7776.72. I took the loan out over 36 months so its up in Jan 2010. So if i'm right 3 quarters of the term has elapsed? On my agreement it says after 3 quarters early settlement figure will be: £1633.33 although the figure i got yesterday was £2584.52 thats quite a difference £951.19 to be exact...any idea if this is right?

Robert_Sterling_3

Tell us the
monthly payment
About the insurance
About the interest rate actually charged on the loan
Did the insurance get added on to the loan
What was the stated APR
Have you got it in writing what the redmption would cost three quarters of the way through the loan?

SL123

Ok,

Monthly payment is £216.02
PPI £1113.17
APR 53.23%
Interest Rate per annum 51.11%

Yes I have it on my loan agreement that after 3 quarters you would expect to pay £1633.33.

Thank you, hope this helps more.

Robert_Sterling_3

Thank you, hope this helps more.[/quote]

Thank you for providing the above information.
Your actual loan was for :-

£3,000 + PPI + x
£3,000 + £1113.17 + x
£4,113.17 + x

The PPI is very high indeed
The APR is very verh high indeed.
The x factor may be an additional fee you had to pay on day one
or something else I do not know about.

In any case the outstanding balance after 27 month should not be higher than £1633.33 as without the x factor I make it less than £1633.33.

SL123

Thank you for your reply,

Having another look at the agreement and it says:

Total amount of credit: £4308.17

Amount of credit to insurances: £1308.17 =
* Lifecare: £195
* PPI: £1113.17

Total cash: £3000

Acceptance Fee of £75

Also says interest charge: £3393.55?

Robert_Sterling_3

OK

I now make the outstanding balance after 27 months about £1613.48.

I do not know if you actually paid the acceptance fee on day one.

I get much closer to their balance after 27 months if I add the £75 to the loan

making the loan £4383.17

I then make the interest charge £3387.82

and the balance at 27 months £1796.94

So their figures are not consistent with each other.



You are right in thinking the outstanding balance you have been quoted, if

all your payments have been made in full and on time, is too high.

CLAPTON

It seems to me, that based on the total 'loan' of 4308 then a settlement figure of around 1630 ish after 3/4 of the payments is about correct... I would query it will them

assuming of course no missed payments

SL123

Thank you both for your replies, I think I will query it with them, I thought I was in position to settle loan but if their right, I wont be.

I will update you as soon as I know, thanks again.