Tesco Loan Settlement figures don't add up? Help!

TerencePhilips

Hello!

This is my foirst post on here and am hoping somebody might be able to shed some light on what's going on with my Tesco Loan.

I tool a £25k loan out 16 months ago for a period of 120 months. 7.9% apr and £302 a month repayments.

in the 16 months i have paid £4832 never missed any payments, never fell behind etc..

So, i contacted Tesco to get a final settlement figure, the have quoted me just over £23k.

Does this sound right considering i have paid of £4832.

If we take the original £25k take of the £2k making it £23 (the settlement figure) this means i have paid £2832 in interest in 16 months (not sure what apr that is?)

What am i missing here guys?

Appreciate any help advise you can give me

Thanks TP

BobbyMcDougall

I worked out your interest in the first 16 months to be £2633. Likely to be an early redemption fee too.

Happytogetdebtfree

Hi do you have your paperwork ? maybe ring tescos and ask them to explain the settlement figure ? good luck

TerencePhilips

Yes, they sent me some paper work, but it never showed interest rates etc? bit strange..

I suppose when you put out the interest like that it kinda makes sense, 10% would be £2500 per annum...so i suppose the figures dont sound to far away....

BobbyMcDougall

TerencePhilips wrote: »

Yes, they sent me some paper work, but it never showed interest rates etc? bit strange..

I suppose when you put out the interest like that it kinda makes sense, 10% would be £2500 per annum...so i suppose the figures dont sound to far away....

Yeah, I tried to copy and paste the spreadsheet to show your interest charged and payments etc but it went off the page!

In your first month, you were charged around £162 interest, so you only paid £140 to the actual debt. In month 16 around £147 interest was charged.