Loan terms and conditions confusing

Malcolm7537

Hi all money saving experts — can anyone help me with the following information and question(s)? I applied for a loan in 2005 of which at the time was a tad confusing regarding the way interest was charged. The APR is 5.7 which was attractive however I can't find outlined on my paperwork that I have had to pay interest first on the full £12,000 before I get to the capital — not such a good deal after all!

I have been advised that (I will try and get this right) If old loan policies set out do not match current lawful conduct that a claim can be made with the ministry of Justice; can anyone elaborate on this? Any advice will be greatly welcome

Happy saving and thank you

Rafter

Regardless of whether interest is added up front, the APR should allow comparison between loans with different interest calculation methods. Credit cards is a different story!

I think you may have been misled about making a claim for some kind of refund just because the way the interest was charged, presumably lawfully at the time.

If you still have your loan paperwork, post some more details about how much you borrowed, over how long and what the monthly payment is/was.

Also check the paperwork and make sure an APR is quoted. The 5.7% might be the interest rate and not the APR - the two can be different.

Good luck

R.

Malcolm7537

Thanks Rafter

I will look into further

Regards

Mal