Pay off sainsbury's loan early catch

mwconfused

I know that LloydsTSB allow you to part repay a loan. The outstanding loan then runs its course and there is no charge (e.g. 2 months interest - 1 month deferred notice + 1 month interest is what's allowed).
Now I have a loan with Sainsbury's and fortunately can pay off early.
So last month I paid off almost all of the outstanding balance. When I ask for a settlement figure today, by my calculations, it includes the outstanding balance + 2 months interest on the original loan amount, not the current balance (the previous settlement figure was held for 28 days and has now lapsed). They also said there is more than £1000 balance remaining. I know that that includes the original loan amount + interest for the full term, which they applied on day 1.
Does anyone know if this would work the same as LloydsTSB where, should I let it run its course it won't incur the 2 months interest?
Can they really charge 2 months penalty on the original amount, not the amount outstanding?
I'm still quite early in the term so the difference is about £200.

jonesMUFCforever

What does your loan agreement say?

CLAPTON

maybe post up the full figures

mwconfused

OK here goes:
original amount £13,500, 8.9% for 5 years. 1st payment £426.80 fine. 2nd month finances change so asked for settlement figure. They quoted £13,403, quote valid for 28 days. They also said balance was £14,938 - as if they added the full term's interest on day 1. I then paid £12,800 and let the next payment of £426.80 go as normal. By my calculations, based on interest per time in debt, that should have left about £45.
I called today for a new settlement figure. Instead of £45 plus 2 months interest on that (I was expecting to pay about £50), they quoted £244. The extra £200 is more like 2 months interest on the original amount. Now the total amount i'd pay is £13,900, equivalent to £400 for 2 months in debt.
The agreement says to pay early = full amount - statutory rebate. Part-pay and amount reduces by the amount paid + statutory rebate, following which payments and final amount may change?! Statutory rebate is more confusing to (i thought) law that says penalty can only be 1 month interest, deferred by 1 month notice period (= 2 months interest).
Maybe i miscalculated or misunderstood agreement. It clearly says the charge for credit is interest on the loan. How can they charge interest on an amount that is no longer standing?
Perhaps if i let it run this next payment it won't incur the charge? Lloyds manager encouraged me to do this when paying off their loan a while back (it was 16% interest so worth changing)...

laurel7172

So they quoted £13403 to settle, you paid £12800 followed by £426 and you wonder why you still have £200 left to pay?

mwconfused

Yes. The first settlement figure was quoted when only 1 payment had been made so amount left to pay + 2 months interest (that comes to about £13,400).
I asked for the new settlement more than 28 days later and thought it should have been 2 months interest against the amount now outstanding. The point is to pay a lesser penalty. Instead i'll end up paying more than first settlement figure.
So, is the 2 months interest penalty always against the full original amount?

laurel7172

But £12800 + £426 = £13226, which is nearly £200 short of the original settlement figure and would explain why you still have £200 to pay. Sorry, but is it the original settlement figure that you have a problem with?

mwconfused

No, the original settlement figure made sense: £13,500 - £426.8 + interest to the date of quote + 2 months interest against the amount on date of quote.
However, they said the settlement figure was valid for just 28 days so the quote has now lapsed.
What I expected today was a different settlement figure after the remaining balance had been so small for more than a month, given that the penalty would be against the remaining amount.