HELP loan seems extortionate

givememoney

My son has had a loan with Santander since time immorial.

They never send statements so I said to him he must get one. He has now obtained one.

Can some clever person or persons please answer some questions and tell us what he could do.

The statement is only from Oct 2008 and the balance then was £7,836.26.

22 months later the balance is now £6,435.15 so despite paying £180 per month which totals £3,960 instead of owing £2,475.15 all he has paid back is £1,401.11.

He though the interest owing was built in but each month they show an interest figure. There again in Oct 2008 the interest for the month was £57.92 but despite paying back some of the capital sum each month the interest they take goes up monthly....how is this?

Every month the interest increases by just over £1 per month so now, 22 months later his last payment interest had gone up to £80.78 per month so his captial payback had gone down to £99.30

The annual percentage rate is 19.9%

Can he move the loan elsewhere or what do anyone suggest.

MFWannabe

givememoney wrote: »

My son has had a loan with Santander since time immorial.

They never send statements so I said to him he must get one. He has now obtained one.

Can some clever person or persons please answer some questions and tell us what he could do.

The statement is only from Oct 2008 and the balance then was £7,836.26.

22 months later the balance is now £6,435.15 so despite paying £180 per month which totals £3,960 instead of owing £2,475.15 all he has paid back is £1,401.11.

He though the interest owing was built in but each month they show an interest figure. There again in Oct 2008 the interest for the month was £57.92 but despite paying back some of the capital sum each month the interest they take goes up monthly....how is this?

Every month the interest increases by just over £1 per month so now, 22 months later his last payment interest had gone up to £80.78 per month so his captial payback had gone down to £99.30

The annual percentage rate is 19.9%

Can he move the loan elsewhere or what do anyone suggest.

Hi
do you have a copy of the original agreement? How much was the loan for? How many months was it over? Is it a fixed rate loan?

Regarding moving the loan elsewhere that would be dependent on if he could get a new loan to pay this off. That would depend on how much he earns and if he has any more debts

CLAPTON

we need th full details of the loan

at 7,836 at 19.9% would mean a interest charge of 7836 x 19.9% /12 i.e. £129
so you need to find the full details

is the rate fixed
was there PPI
was there any missed payments etc

givememoney

FREEZ wrote: »

Hi
do you have a copy of the original agreement? How much was the loan for? How many months was it over? Is it a fixed rate loan?

Regarding moving the loan elsewhere that would be dependent on if he could get a new loan to pay this off. That would depend on how much he earns and if he has any more debts

My son unfortunately is very poor on paperwork so no he will not have the original agreement. Also he kept borrowing more. The loan is supposed to be finished in 4 years time. It is termed an `unsecured personal loan`. Don't know if it is a fixed rate loan.

We are not really expecting to go back just is there an option for taking the loan elsewhere and getting better rates.

givememoney

CLAPTON wrote: »

we need th full details of the loan

at 7,836 at 19.9% would mean a interest charge of 7836 x 19.9% /12 i.e. £129
so you need to find the full details

is the rate fixed
was there PPI
was there any missed payments etc

Is the £129 you state the interest for 1 year?

As I said above don't know if the rate is fixed.
What is PPI?


I have just realised I have been reading it wrongly.

The amount I thought was the interest is actually the capital and vice versa.

So to start again the interest 22 months ago was £122.16 per month and the capital sum paid back was £57.92.

Last month interest was £99.30 and capital sum paid back was £80.78.

He earns about £18,000 per year and doesn't have any other debts.

ILW

As the loan goes on you will find that each month the interest mount will decrease whilst the capital paid off will increase. you could get a settlement figure from them and see if it is worth trying to get a cheaper loan elsewhere.