Help with Acceptance Fee

monkey_fan

Hi,I have been reading some threads on this wonderfull forum and am a little confused about acceptance fee's on loans.If an acceptance fee is added to a loan should interest be added to this acceptance fee? Also on the loan I have I see there is something called and Optin fee (which is £100) - but no record anywhere of what this is, any one any ideas?Sorry if these are all quite straight forward questions.Thanks M.

latecomer

Best thing to do is phone them up and ask about the Optin fee.

Any fees added to a loan will have interest charged on them.

Robert_Sterling_3

monkey_fan wrote: »

If an acceptance fee is added to a loan should interest be added to this acceptance fee?

Yes but you can pay the acceptance fee on day one.
Because there is an acceptance fee the actual rate of interest you are charged will be less than the APR of the loan.

~Brock~

The loan agreement you have is likely to be a HP agreement. The option fee is a fee payable at the end of the agremeent upon which you exercise your option to become the legal owner of the goods.

Both the acceptance fee and the option fee should be included in the total charge for credit calculation and also the APR. Provided the amount of credit is stated EXCLUDING the fees, they are perfectly legal.

monkey_fan

nice and simple - thanks for your answers, just wanted to have everything straight in my head.
Regards, M.