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Ford credit
peteallen3220
Posts: 3 Newbie
I purchased a car from Polar Ford 3rd June 2010. Price owed after PX was £8800. This was taken out on Ford Credit on that date. I have now cashed an ISA in and wish to pay the full amount off using cash saved up. I contacted Ford Credit and they stated that even though I have only had the load for 12 days I will have to pay back £8930 to pay off the loan today. Is it right that they can charge so much interest (£130) for such a short period.
Thanks
Pete
Thanks
Pete
0
Comments
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peteallen3220 wrote: »I purchased a car from Polar Ford 3rd June 2010. Price owed after PX was £8800. This was taken out on Ford Credit on that date. I have now cashed an ISA in and wish to pay the full amount off using cash saved up. I contacted Ford Credit and they stated that even though I have only had the load for 12 days I will have to pay back £8930 to pay off the loan today. Is it right that they can charge so much interest (£130) for such a short period.
What does the contract say?
You read it before you signed it, right?0 -
It states that they can charge a "nominal amount". Surely this is a slight excessive though for 10 days finance.0
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£130 doesn't sound a lot to me! They will have had set up costs it sounds about right. Zopa loans set up charge is about the same. I'd pay it and be glad I've been able to clear the loan. Will be interesting to see what others say though.:j Trytryagain FLYLADY - SAYE £700 each month Premium Bonds £713 Mortgage Was £100,000@20/6/08 now zilch 21/4/15:beer: WTL - 52 (I'll do it 4 MUM)0
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No, they can only charge interest at the contractual ratepeteallen3220 wrote: »...Is it right that they can charge so much interest ...peteallen3220 wrote: »It states that they can charge a "nominal amount". Surely this is a slight excessive though for 10 days finance.
A nominal fee for administration involved is ok as it is allowed for in the terms of the contract.
As others gave said, £130 (probably a bit less as some of that charge will be interest) seems a fair amount. Have you seen the size of some of the administration fees charged for setting up a mortgage and/or early redemption thereof?
It doesn't matter how long the loan was for, the administration involved is just the same."Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100
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