help--repaying my loan

debnlee_2

hi im hoping someone could please advice me, ive recently took a loan out to repay all of our debts,one i want to pay of is a loan we took out approx 12mnths ago for £7500 but with all the other fees on top it worked out that we borrowed £8,437.50, weve been paying that back at £116.99 a month, i wrote to them and asked for a settlement figure as i wanted to now pay it of in full,ive today recieved the settlement figure of £8,520.75 as you can see this is more then we origanly borrowed to start with,whats my £116 a month been paying??? i phoned them and they said that the intrest we would have paid over the 10yrs we had it over would have made it £14,038.00 but because we are paying it of early it would now be £12.880 they give us a discount of £4,610 ( rebate of finance charges) and charged us £250 admin fee which arrives at the settlement figure £8,520, does this sound right to you?? i really didnt think we would have to pay so much back!!!! thanks

grumbler

I am not expert in loans, but can advise you to post more information from your loan T&C, particularly about early repayment charges.
I guess your APR is 14%. After 10 months the amount you owe should be about £7200. Early repayment charges showldn't be more than a few months interest that is about £85 per month.

debnlee_2

right here goes i dont know if you can make any sense out of it with a bit more info; loan worked out at £8.437.50 monthly rate of interest (varible) 0.93%which is an annul rate of 11.7% , varible annual % rate is 15.1% cant find anything in the small print about paying the loan of early!!!

debnlee_2

debnlee wrote:

right here goes i dont know if you can make any sense out of it with a bit more info; loan worked out at £8.437.50 monthly rate of interest (varible) 0.93%which is an annul rate of 11.7% , varible annual % rate is 15.1% cant find anything in the small print about paying the loan of early!!!

it comes across to me that theyve charged us for loads of the interest we would have paid, but surely they can only charge us for so much?

grumbler

Well, if they added £937 :eek: of something on top of the £7500 loan, you owe after 10 month about £8000. If there is no anything in the Credit Agreement about early repayment charges, they cannot demand more than you owe them. The same applies to the £250 admin fee.

dc_stones

did you eventually get any of this money back??