not sure if this is correct at all???????

baz995

HI all thanks for looking,

i have recently changed my car insurer and went for the monthly payment option, my question is related to the following calculation they gave me:

Insurance Premium 483.00
Deposit 120.00
Amount fo LOAN 363.00
Credit [EMAIL="charge@10%"]charge@10%[/EMAIL] 48.30
Total payable 411.30

Does anyone know why they have charged 10% on the £483 instead of that actual total remainding after my deposit was paid of £363??

Just does add up to me

Thanks for your advice

GEEGEE8

is the 10% not on the Insurance Premium?

baz995

Thats what i think, but they are calling it a credit charge and it says loan amount £363, i dont think its correct to charge me interest on £483 when i paid £120 up front therefore leaving the amount left at £363.

Am i being a bit thick or is this the norm

Common_Sense_2

they could be treating the £120 as the initial payment.. can you scan and upload the doc (less all your personal details of course) then we can take a look...

redpete

They can calculate the charge how they like, including making it 10% of the premium. But somewhere in the documentation they should tell you the APR that this charge equates to - it will be something more than 10%.