Loan Rip OFF

XXSCOTSLASSXX

amccoy wrote: »

or even put lump sums towards it, but it seems that any payment i make will be swalloed up in interest.

what kind of lump sum were u looking at this may make a considerable difference, the lump sum will come directly of the actual capital thus reducing the interest

Wutang_2

amccoy wrote: »

What do you mean??

Are you asking what is it that I want?
[STRIKE]
Well i want to know do I have a case, I have never had or heard of a loan like this, I have had loans before and paid them back early and only paid the interest for the time I have had the loan, my payments to them was interest and capital, which brought the loan down every month.

So my question is[/STRIKE] do I have some sort of case against them?

Do you think the loan is enforceable?

DevCoder

Of course it is.

Oh sorry, you wanted the OP to respond

DevCoder

No PPI and no missed payments according to the OP.

poppasmurf_bewdley

I can't see what the OP has to complain about.

My first mortgage was for £18k in 1984 and payment about £300 a month, so in the four years that I had the mortgage I paid £3.6k times four which equals £14.4k, and I still had 21 years left. And that was with the Halifax.

With any loan over a period like 20 or 25 years, you are going to pay one hell of a lot of interest. It's not like when you borrow £5k over three years and pay back £7k.

Bravehearted_2

Assuming fixed rate, you'll be paying a total of £70294.54 back...sounds right ish??

JSF23

The simple facts are that you pay more interest in the early years as you owe more capital - that is basic maths. There is no unfairness in that.

However, you say you owe more now than you borrowed. That means that the early settlement penalty must be quite a significant sum. Have they actually given you a breakdown? If not ask them for one and see if they're using the rule of 78. See thread.

https://forums.moneysavingexpert.com/discussion/20321

In addition it is not sufficient to just say you signed, don't complain now. The terms have to be clear and transparent. If they are not it creates an imbalance in the rights and obligations of the two parties (the bank and you).

It is widely known that some second charge lenders have manipulated their loan terms to ramp up interest rates to pay for their failed business models which were heavily reliant on PPI and the associated commissions. It's my belief that this is the next big banking scandal - we'll see.

Have they increased your APR?

Edit - also who's the bank?

pjproctor

Don't Panic !

Some loan companies do issue statements that read that way and assume you are continuing with your agreement until it is fully paid on the scheduled final payment day.

If you were to settle up early in cash the figures may not add up as bad.
Write to them and request an early settlement quote...
Do this before you panic any more...
Let me know how you get on!

amccoy

Hi Guys,
Thank you for your reply's, some with advice some with their own tales of woe.

But I think most are missing my complaint,

My complaint is that I am having to pay 25years interest even if i pay the loan of now 5 years on!

I took the loan over 20 years as advised so my payment would be low until I could clear the loan of which i planned to be within the 5 years, and expecting to be paying 5 years interest.

Now I know if i pay the loan over the 20 years then YES I am going to be payting that amount of interest. As i said I have had loans before and have always paid them of before the term.

I got a loan 2 years ago to go on holiday, I borrowed £5,000 over 4 years, I was back from holiday 3 months and repaid the loan, but only paid the interest for the amount of time I had it and not 4 years interest.

amccoy

Tixy wrote: »

What does your paperwork state about the loan? about early repayment, about front loaded interest etc?

We cannot possibly advise without knowing what the loan agreement says.

Thank you Tixy for your replies,

I get the feeling you know what I am complaining about.

If I get the paper work how can I post it or let you read it???