Beneficial Finance

ryan1978

Hi,

I took out a loan with Ben finance a coulpe of years ago - about 4k at 33% interest repaying 170 a month over 3 yrs (madness I know!) Just been on to them about early repayment expecting to be two thirds of the way through only to find out my balance was nearly 3k meaning all I've been doing has been paying interest. This was not explained to me at the outset and is devastating news. I know it's my own stupid fault.

Is there anything I can do about this - I've heard of some government scheme that can wite a loan off when sold on incorrect / false info. Any advice greatly appreciaed.

Thanks

CHR15

Does the ratio of payments actually matter??

During the early period you are paying a lot of Interest and a little capital

As the loan period matures you are paying less and less interest, and more and more capital.

You could argue that you have already paid all the capital and are now simply paying off the interest now.

Ultimately, didn't you agree to borrow £4,000 and after 3yrs, pay the loan back including the interest?

Is it relevant how the money is divvied up in the repayment term?

CLAPTON

ryan1978 wrote: »

Hi,

I took out a loan with Ben finance a coulpe of years ago - about 4k at 33% interest repaying 170 a month over 3 yrs (madness I know!) Just been on to them about early repayment expecting to be two thirds of the way through only to find out my balance was nearly 3k meaning all I've been doing has been paying interest. This was not explained to me at the outset and is devastating news. I know it's my own stupid fault.

Is there anything I can do about this - I've heard of some government scheme that can wite a loan off when sold on incorrect / false info. Any advice greatly appreciaed.

Thanks

after 24 payments ... assuming no PPI or payment holidays etc you should have a settlement figures of about 2,000

Do you have a written settlement figure?

Rafter

ryan,

As Clapton points out, your settlement figure should be less by now UNLESS you opted for payment protection insurance?

If you did, was it ever suggested that this insurance was compulsory in order to get the loan, in which case you can challenge it and hopefully get your premium refunded.

at 33% APR you should definately try to get this loan repaid or refinanced to avoid wasting any more money.

Good luck

R.

simon_templar_2

PPI was mis sold by these lot most of the time. Customers were often told you cant have the loan if you dont take out ppi. If the CAM did not clinch a ppi sale during the interview they had to come out of it and tell the manager why. The manager would then go in and try to make the customer take it and use the same old line about protecting the banks interest as well as the customers and basically no ppi equals no loan. They also tried to make the customer take out a range of personal accident plans at the same time.