Final Settlement amount help please?

Psykicpup

Because of our previous finacial situation hubby & I have taken 3 Provident Loans with horrendous interest. However I have now been able to take out a loan (through bank) at a much lower interest rate (still not wonderfull tho) purely to pay off these Provi Loans;)
Now my question is...as the interest quoted is over the full term of the loans the final amount I will need to pay Provi will actually be lower than the amount showing as outstanding in the record/account books that we have.
I am quite prepared to pay the amount showing & have them refund any over payment but I would like some I idea of the amounts it should be. Thing is my math is not great & I find interest rates etc a bit confusing _pale_ -not helped by the fact the actual interest rate is not quoted in the books merely 'total charge for credit'

If I post the amounts would someone please be kind enough to work this all out for me? - will post in reply the amounts as this is rather long

robnye

why dont you just give them a call and ask for final settlement figure as at say 1st december and can they confirm the figures in writing

Psykicpup

I dont have a head office no for them & I have the money sitting in my bank to give to the doorstep collector tomorrow when she comes (lovely lady I'll miss her)
I know that I should have done what you suggested but the loan all happened so fast & I cant risk leaving the money in my acount 'cos I know it will get spent -my will is not that strong.

Here's the amounts & dates -177% APR

Hubby #1 start date 24/06/06
loan £250
total charge for credit £162.50
total payable over 55 weeks £412.50
balance as at 18/11/06 £251.50

Hubby #2startdate 12/08/06
loan £200
total charge for credit £130
total payable over 55 weeks £330
balance as at 18/11/06 £234

Me start date 24/06/06
loan £400
total charge for credit £220
total payable over 55 weeks £660
balance as at 18/11/06 £398

Xbigman

Holy !!!!!!. That looks like 49.9% apr off the top of my head.

You need to get a settlement figure for each loan. I know what you mean about not wanting the money available to spend, but for your own protection you simply must get the settlement figures in writing.

Next time your rep calls ask for the head office phone number. She should give it to you. If she doesn't then she isn't lovely at all. If you simply can't get the number then write to them, recorded delivery, asking for settlement figures.
Regards


X

Psykicpup

Cheers Xbigman -actually found headoffice no but they couldnt help - I have to ring agent or local office! -so I'm gonna ring her in a mo
ps you think those rates are bad thier Xmas wish list loan offer I got through the post offers two levels.....102.7% & 177% respectively!!!!!

UPDATE -she will bring figures round tonight

nomoneytoday

Basically you will pay interest based on the rule of 78.
(1+2+3+4+5+6+7+8+9+10+11+12 = 78)

This a standard formula which prorates the interest for the time you actually borrow the money. You arranged to borrow £850 for (about) a year, which they would then get back £1402.50 back.

The settlement figure would be the principal amount borrowed (850), + the interest for the year (552.50) - interest for the period not borrowed + the rule of 78 to compensate them.

As you didn't give the start dates or APR I can't give you the exact numbers.

Cumbrian_Male

If you request a settlement figure, you will get a quote valid for 28 days. If you pay your full balance your rebate will be calculated from settlement date.

So request settlement quote and pay off settlement figure then your effective settlement date will be 23/12/06.

Pay your full balance off and your settlement date will be 25/11/06. So your rebate will be for more.

This is due to settlement quotes having to be valid for 28 days.

So if you want a little more money off your interst then this is the way to do it.

The APR's on all your 55 week loans is 177.0

I work for Provident.

Psykicpup

Thanks to you both, Cumbrian Male & Nomoneytoday

I have to say the rule of 78 goes right over my head!(I have edited OP to inc start dates & the APR as quoted by Cumbrian Male)
My lady didnt bring a final settlement figure just the balance outstanding, the same info as I have in my books.........
I guess I will just have to wait & see what I get back from them- I would feel happier tho if i had an idea what it should be

jamesd

nomoneytoday, those loans were taken out in June and August 2006, after 31 May 2005, and run for 55 weeks. Why don't the Consumer Credit (Early Settlement) Regulations 2004 apply and prohibit the use of the rule of 78?

Psykicpup, if the rule of 78 doesn't apply, you get a better deal, so nothing for you to worry about. Your lady seems to have 5 days of the 7 days required by law left to get a settlement amount to you.

I suggest that you do as Cumbrian Male suggested: pay the money off as soon as possible, without waiting for a settlement figure. Assuming that the balance in the books is the balance of the amount borrowed that has not been paid off yet, you should be able to add up those three amounts to get the total needed. You'd then get a refund of some overpayment.

Congratulations on escaping the very high (but very convenient) interest rates!

Cumbrian_Male

jamesd wrote:

nomoneytoday, those loans were taken out in June and August 2006, after 31 May 2005, and run for 55 weeks. Why don't the Consumer Credit (Early Settlement) Regulations 2004 apply and prohibit the use of the rule of 78?

The 2004 regulations do apply. My understanding of which is 4 weeks early redeption charge for agreements of 12 months or less and 8 weeks for agreements over 12 months.

The calculator on our system takes into account the date or issue so will use the new regs or old reg depending when the loan started.

Psykicpup

I paid her .... just waiting on figures ... would be helpfil of someone could work out for me tho just to check they are right - dint trust them overley