Advice on a settlement figure for a Tesco loan

wookiebear

I have a £17600 Tesco loan which I have over 7 years with an APR of 8.4% and pay £278.44 a month which I have paid 6 payments on.
Due to some inheritance I want to pay off the loan, I telephoned them today for a settlement figure and nearly fell off my chair when I was given the figure of £21439.88.
After looking at the loan agreement it looks like they have added the total amount of interest over the 7 years upfront to the loan.

My question is, is this right are they allowed to do this; I have never had to pay more on a loan than when I started before especially not 4k after £1670 of payments?

CLAPTON

the information was incorrect

reread your loan agreement; it will explain about early settlement

in any case ask for a settlement figure in writing
it will be a lot less

wookiebear

Thanks for the reply I will ask for written confirmation today and see if it comes down.