GE Money

claire0788

Hey,

Not sure what I actually want help from just advice really.

I have a loan with GE Money (it was to buy double glazing). It was £2950 at the beginning and i have been making repayments but the amount I now owe has gone up ! I have paid well over £800 and the balance is £3070 (or there abouts) now. I totally dont get it.

If i can save £3000 to pay off the loan, ill get charged £1000 for paying it off early.

Is there anyway to get around this ?

CLAPTON

what was the APR of the loan
how many months was the loan over
what were the monthly repayments.
was there PPI?
were there any payment free months initially?


why do you say you will get charged 1000 if you pay it off early?
why do you say the amount you owe has gone up

claire0788

22.68%
120 months
63
Nope
Was meant to be 3 months interest free, weatherseal messed it up (they were the people who came out and arranged the loan) They told me that I could pay any amount extra over my monthly payments when I could afford it in the future. Now GE money have told me this is not the case and that I can only pay up to £126 (double my monthly payment).

The paper work says "if you exercise your right to settle this agreement early, the following amounts will be payable for every £1000 borrowed - 919 after a quarter of the term, 763 after half the term and 492 after 3/4 of the term.

Fire_Fox

Bumping as I know Claire is worried about this and hope someone can help.

CLAPTON

Perhaps you could clarify

usually companies offer payment free months at the beginning (typically 3) but these are NOT interest free ... the interest accrues and is added to your debt)


I would guess that is what happened here ... so the 'payment free' interest is added to your total. (each no payment month would add about 2950x 22.68%/12 = £55 )
So they would add up to an extra 150 ish for say three months payment free.

Then as you are paying over such a massive period of time, your monthly payments only just cover the interest and so you have only paid a small amount off and haven't yet reduced the debt even to the original amount. If you are paying 63 per month and the interest is 55 ish then you are only reducing your debt by 8 per month in the early months of the loan.


Your paper work doesn't mean you will pay a penalty of £1000

what is says is that if you settled after 3/4 (i.e. after 30 months) you will have to pay

2950 x 919/1000 i.e. 2711 to settle the debt
or after 60 months then 2950 x 763 /1000 = 2250

The reason its like this is
a. your APR is very very high
b. the period you have borrowed over 10 year is very very long
so that means you're paying a high rate of interest over a long period of time

so your 2950 will cost you 63 x 120 = 7560.


Assuming you have paid about 12 or 13 payments off then your settlement figure would be just over 3,000 still.


So yes, if you can save up or even borrow at a much lower rate about 3k then you will be able to settle this off and save yourself a lot of interest


Hope this helps a bit.

claire0788

Hey

I have posted on my other thread. Basically various things have happened over this loan and is there any template that people know of for writing to the company about a missold loan ? There are obviously more details on the other thread and myself and others think there may be grounds for this.

Thank you