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£670 for 6 weeks loan

we took out a car loan with stoneacres (lincoln) who fiananced the loan £6500 with barclays motor loan, when i enquired about paying the loan off early, the letter says it will cost me £670 to get out of this £150 admin, £150 closure, and £370 interest is this right after only a 6 week loan.and paying it off 34 1/2 months early..????

the interest rate is 7.75% per year flat rate
apr 18.08%
charge for credit £1844.64 rebate for early settlement £1397.44

settlement figure £6942.20 + 1st payment £227.49

total cost for early repayment £674.69for a 45 day loan.....
loan taken out over 3 years

Comments

  • Bokken_2
    Bokken_2 Posts: 657 Forumite
    Welcome to MSE
    I does sound excessive could you post more details of the contract and the interest rates they are charging you and someone will be able to help.
    Have a look at the early payment charges section and post that here.
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