First Plus Loan Settlement Query

Feebs

I wonder if anyone can help ? My partner recently passed away and I am now in a position to pay off my 'crippling' First Plus Loan. I was given a settlement figure of £20,093.23 as of date 8/10/10 but was not then in a position to settle. I have now had a new settlement figure (as at 9/2/11) of £19,532.21.

This difference between these two figures is £561.02 but I have paid three instalments since the first settlement figure totalling £1,260.84. This is a difference of £699.82 !!! realise that they charge a settlement administration fee of £150.00 but even so !

When I called them up they told me this was interest that I had been charged. Unfortunately I'm not too well versed in how this loan is structured as my partner dealt with it when he was alive.

many thanks for any advice.

ViolaLass

I make £550 on £20093 (rounded numbers for simplicity) to be 8% a year. Is that the interest rate you're on?

paddyrg

£700 interest for 3 months interest on £20k doesn't sound outrageous at all, that's a crudely 14% APR, right?

Sorry to hear about your partner, was there no protection insurance covering death?

ViolaLass

I thought it was £700-150 for 4 months but still, the rate doesn't sound unreasonable.