Can anyone help me? Settlement figure seems high

kavics17

Hi,

I have a loan with Tesco. I took it out last August (so have had the loan for 12 months now), for 62months, the amount was £14999. It started with 2 months repayment holiday, my first payment was on the 2nd of November. The APR is 9.7%. If I wouldn't have made any partial payments the total amount payable would have been £19105.80.

Between November and April I made only the minimum payment of £318.43 a month. But from April I made partial payments twice a month (when OH's salary was in mid-month and mine at the end of the month). So far I paid £15061 towards the loan (average of £2600 a month from April).

I have real troubles with Tesco, at the beginning they sent me a letter confirming my payments which stated the amount of partial payment, rebate of interest, when the loan was re-calculated and it confirmed the outstanding amount after partial repayment. I haven't received letters since the 2nd of July despite requesting and re-requesting them on several occassions (7 letters are missing, requested them about 10 times).

Now I have everything written down, when I made the payments, when they left my account, how much it was, etc so I believe that the remaining amount left on the loan should be less than what I got quoted. I asked for a settlement figure today: £2541.23, the balance of the loan is £2573.63). According to my calculations this should be under £2000 (even with the interest for repayment holiday at the beginning plus the interest penalty to pay the loan off early)

Can anyone help me? Whether Tesco's calculation is right or wrong? As I said, they haven't sent me out letters about 7 partial payments so I have no idea how to check it. I am planning to pay this loan off mid-September.

Thank you

[Deleted User]

have you included the 1 or 2 months additional interest they will charge for early settlement?

immoral_angeluk

Have you accounted for any early settlement fees?

kavics17

Yes, I included those interest in my figure too. Anyone else?

paddyrg

Did you consider that the payment holiday is not an interest holiday, so you accrued 2 months interest on the full loan value?

kavics17

Yes, I did. It's in the first post too. It just seems high and have no record to check whether all the payments were credited to the loan.

geoffky

Ask them to put it in writing detailing how they arrive at the figure...Then go through it meticulously.

Xbigman

You seem to have accounted for most of the possibilities. The only way forward is to get the figures from Tesco's.

One thing that did occur, did they apply the overpayments immediately or from the end of the next full month? That might make a difference (but not £500).




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