Final payment on loan - can they do this?

Vikipollard

Can't offer any useful advice, however take heart...if it had been Santander, it would have been an additional £299 on top of your monthly payment for the last month for their admin fees! It does tell you that in their paperwork though, so I wonder if it was in yours too

Cell

aliasojo wrote: »

Because the interest was known and expected. The other charges weren't.

I bet you they were, or ought to have been.

People have a tendency not to read documentation. And they tend to be the people who lose their loan documents as well.

All the OP needs to do is ring up the finance company and ask for a copy agreement. I bet you anything it's in the calculation. In fact it would be unenforceable if it wasn't.

This is a common question - you only have to back five days for the last post on the subject:

https://forums.moneysavingexpert.com/discussion/3942347

aliasojo

Cell wrote: »

I bet you they were, or ought to have been.

I bet you anything it's in the calculation. In fact it would be unenforceable if it wasn't.

Obviously. But they were unexpected to the OP, for whatever reason.

Anyway my comment wasn't meant generally, it was in reply to a specific question that Apples asked.

Cell

This may help?

http://www.financingyourcar.org.uk/hire-purchase/

End of agreement: What happens next?

There are several ways to conclude a Hire Purchase Agreement:

Early Settlement – You can settle a Hire Purchase agreement at any point in the agreement by paying the outstanding balance and the Option to Purchase fee to the lender. There may be a charge for settling the agreement early. Speak to your lender for further information.

End of Agreement / Contract - At the natural end of a Hire Purchase contract, once all the contracted payments have been made, you can pay the Option to Purchase fee and take legal title to the car. Alternatively, you can choose not to pay this fee and simply return the car to the finance company.

Fees / Charges - Finance companies will disclose all fees and charges in the terms and conditions of the Hire Purchase agreement.

MrsL*

Wow, I had no idea my little question (and my naivety) would cause such controversy!
Some good advice though for the future, I duly promise to read ALL T&C's from now on (wish I could go back and tell my 24 year old self that). So thank you, especially to Krisdorey for the advice and to aliasjojo for sticking up for me - every point you made hit the nail on the head :A