Please he can't work out interest??

Lisaord

Please can sumone help me! My partner took out a driving course in 2006 and it was a credit agreement with barcleys
Fixed apr of 29.8%
£3445 total borrowed
£177 per month
For 36 months

I have tried to work this out and I calculate the interest at £1800 aprox not over £2900 that I have been charged can you help me work this out x

BoGoF

Care to share your workings?

Lisaord

I used n online calculator :-( not very good at these things

BoGoF

I come up with a similar answer to yours with the MSE calculator.

Even though the payments were over 36 months was there perhaps a period when you didn't have to make payments. What does the loan agreement say about the term of the loan?

Tixy

Does look high just on that information.
Was there PPI?
Have you got a copy of the loana agreement?

Lisaord

It did have a 12 month interest free period on the loan and when called said yes had ppi but was cancelled b4 any payments made? Can't see how the payments didn't change if ppi (that is not on agreement or that I knew I had) was cancelled ?? So confused?

BoGoF

You sure it was interest free that 12 month period and not just payments were deferred for 12 months meaning the term was 48 months payable over the final 36 months?

Lisaord

Contract says: your payments will be due 12 months after the advance date, this due date is the last day of the interest free option period??
And even if it was over 4 years I still wouldn't get a total among payable of £6377? Or would I?
That's a total interest of £2932

Tixy

Sounds like 12months no payments, not 12 months no interest.

As that would work out right if that was 12months with no payments. On top of the £1800 calculated before, you also need to pay interest on the £3455 for a year, so a further £1026, total interest therefor just over £2800.

(edit - sorry cross post with yours)

BoGoF

Lisaord wrote: »

Contract says: your payments will be due 12 months after the advance date, this due date is the last day of the interest free option period??
And even if it was over 4 years I still wouldn't get a total among payable of £6377? Or would I?
That's a total interest of £2932

I think by interest free they mean if you had paid it off within 12 months there would be no interest to pay but with these agreement if you then take the option to pay up interest is calculated from the beginning.

Apples2

Exactly the same as any old sofa purchase in a 0% deal.
Fail to pay it off before the year is up and wallop, 12 months worth of interest just arrived.

Wasn't RED driving school was it?