Beneficial Finance - Early Settlement Question

The_Cheese_2

Hi All,

I’ve been hanging out on here a while now but this is my first post. I’ve seen what others wrote about early settlements and confusion of amounts so here are the details. Basically I think they are asking for too much as a settlement figure, but I could be worng?!?

Date of Agreement: 3rd July 2008
Taken over a repayment period of : 60 months
First payment taken: 1st August 2008, taken each month at £200.85, every payment made on time and no other charges have been added

Rate of Interest 18.9%

Amount Borrowed: £8000.00
Total charge for credit (interest): £4051.00
Taking into account the timing of repayments the Total amount: £12051.00

I have made extra payments:
15 Aug 08: £167.93
24 Feb 09: £315.58
25 Mar 09: £4100.00

Having asked for one, they have just sent me the early settlement figure of: £3240.99

This calculates to
13 monthly payments: 13*£200.85 = £2611.05
Extra Payments made: £4583.51
Total paid to Date: £7194.56
Adding on the £3240.99 would give me a total of: 10435.55

On my loan agreement its states that early settlement would be:
At 1 quarter of term: £6692.99
At 1 half of term: £4924.86

I did quick calculations of what each of these would equal:
1 quarter: 15 * 200.85 = 3012.75 + 6692.99 = 9705.74
1 half: 30 * 200.85 = 6025.50 + 4924.86 = 10950.36

I haven’t reached 15 months yet so how can they charge me more than £9705.74?

Please help.

The Cheese