help with loan i've got!!!

system15000

i took a loan out on the 11 july this year with beneificial finance for £1000.00, apr was 45.9% (bad credit rating), paid £900 off today and asked for settlement figure and they said it was £491.00 including intrest, does this sound right

regularsaver1

Are there any redemption penalties for paying off early?

was there an arrangement fee added to to the loan initially?

system15000

there was no arangement fee but it does not say anything about penelties, it says "you may of this agreement early by payning us the aggregate total amount payable together with any other sums due from you under this agreement".
does anybody know a telephone number i can ring to speak to someone regarding this for advice

regularsaver1

some will sometimes charge you 2 months interest as a penalty

system15000

but evan then does that sound right to you, another question my gf has a loan with them also if she cancel's the ppi would her settlement figure be lower

regularsaver1

when you have a loan - you may apply for £1000 but then the interest is piled on at beginning - the beneficial finance near me has just closed - have you tried searching on net for tel number?

did you take ppi?

system15000

yes i did i was quoted about 2 mins ago a settlement fig of £374.00 i think i may just have to pay, so it works out as £274 intrest.
onto the other question my gf loan was £5000 apr 29.9% for 60 months (went through a bad patch) would it be better to cancel her ppi so the resettlement fig would be lower for her.
we was gonna pay 4500 off and then only owe the intrest on whats left to make it cheaper

regularsaver1

I can't really answer that - if she feels she no longer needs ppi then get rid

Turtle

Can't really help with settlement figure but I do know that as of 31st May 2005 new Consumer Credit Act regulations came in which outlawed 'rule of 78' (frontloaded) interest calculations. They are now worked out on a daily accrual method. If the loan runs to term you'll pay the same as front loaded, but if you pay earlier the settlement figure should be more favourable. The penalty cant be more than current months interest plus 28 days, in other words 59 days interest at most.

system15000

receievd a letter today for loan company its says

total amount payable £11,536.66
rebate for settlement £6,025.16
amount required to settle £5,511.50

my gf paid £4,900 off today, so how will the settlement be worked out under section 97 as i just dont understand how they work this