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AA should stick to mending cars!
I took out a AA loan 3 years ago for £6000 paying back £102 PM over 72 months. I am now at the 1/2 way mark and want to pay it all of as it's the last of my debt in the world.
The cheeky B******s have offered me a deal that saves me £397.00 off the total payable of £7619 for paying 3 years early! So at the 1/2 way mark they are offering me a settlement figure of £3820.70 - even on my initial contract it states I would pay £3465 but they say this is just a 'suggested' settlement fee.
So Their assessments mean I pay 72% of the interest in 50% of the timetable for re-payment. They state they are heavily regulated and this is all legal.
My question - nothing I can do about this? Are they right? Saving £397 is better than nothing, but it should be more...
I'll never get a loan again as even when you try your hardest they find a way of preying on you.
Oh and by the way. I got my Bank Charges back from LLoyds to the tune of £1000. The letter landed on my matt at 9am on the same Friday they decided it would go to court - talk about in the nick of time! Thanks MSE.:beer:
The cheeky B******s have offered me a deal that saves me £397.00 off the total payable of £7619 for paying 3 years early! So at the 1/2 way mark they are offering me a settlement figure of £3820.70 - even on my initial contract it states I would pay £3465 but they say this is just a 'suggested' settlement fee.
So Their assessments mean I pay 72% of the interest in 50% of the timetable for re-payment. They state they are heavily regulated and this is all legal.
My question - nothing I can do about this? Are they right? Saving £397 is better than nothing, but it should be more...
I'll never get a loan again as even when you try your hardest they find a way of preying on you.
Oh and by the way. I got my Bank Charges back from LLoyds to the tune of £1000. The letter landed on my matt at 9am on the same Friday they decided it would go to court - talk about in the nick of time! Thanks MSE.:beer:
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Comments
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What is the problem ?
Did you expect a 50/50 split ?0 -
not really 50/50 but I did expect that when they charge the interest over the length of the loan, If I pay back early I would do better than 23ish % If they are charging interest over 72 months a swift repayment should have a better redemption value...0
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especially if the interest hasn't happened..0
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Hey AA
It's well known you pay back most of the interest first, it stinks but is legal.0 -
that sucks but cheers anyway, onwards and upwards.0
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I don't really understand your figures
72 lots of 102 is 7,344 ...so why do you say 7619?... do you have PPI or take any payment free periods?
the figure for half way of 3,465 seems reasonable ..what exactly does your contract say?0
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