Settling an Hitachi Loan

timhill3

Hi,

Please forgive me if I don't explain this very well?

Just over 2 years ago my boiler broke down and not having the money to get a new one installed outright, I went with British gas and their finance option. Yes it was costly however given the circumstances I made the right choice as it was what I could afford.
Anyway the loan agreement with hitachi was over 96 months with the repayments at 56.65 per month. The salesman did tell me that if I made extra payments of x amount it would drastically reduce the term of the loan. The loan features allowed me to do this at no charge. So since the start of the loan, I have paid the direct debit as well as a standing order for £55.
I now have a bit of money and want to clear this debt. The settlement figure I have is £971.60 although the hitachi advisor I spoke to reckons that is my current balance as well, but that didnt sound convincing.
I vaguely remember the salesman saying if I settle the full amount I will be charged a settlement fee amount depending on the remaining balance so advised if i was ever in the position to settle early he said to pay off a large amount but leaving a small balance left and then obtaining a settlement figure.
Does anyone have any experience of this? And does that make sense?

What I suppose I am asking is would you pay off the 971.60 or 800 first and see what happens?

Thanks

timhill3

This is in my agreement:
4. Early Settlement
You can settle this agreement at anytime by paying us;
a) all (but not part only) of the unpaid balance of the amount of credit together with interest to the date of payment and any outstanding expenses and;
b) a sum equal to 30 days interest at the interest rate on the outstanding balance of the amount of credit prior to settlement.

My apr is 11.4