Mis sold loan apr wrong

Kieron_uk

Hi, so I have been really stupid and took a loan for £2500 without reading the contract and as I have poor credit the apr is high. I didn't realise how high until my girlfriend found out and she wants to pay off the loan and I pay her back. Avoiding further interest. I have dug out my contract and have discovered that the apr is 56% but further to this they have added life insurance at £187. I knew it included life insurance but at the time thought I had to take it to get the loan (it was a moment of desperation). It also includes PPI At 1.90% per month. The thing is the figures don't add up! The loan should be £2500 56.2% apr over 23 months at 184.52 per mth plus life insurance 187 at 13.80 per month 46.6 apr. I have put this into a calculator and the apr comes out above 70%. I might be wrong but apart from being taken advantage of in a time of need. I feel that the figures might not be correct and I have been mis sold.

Can someone please Advise, as I just want to get my finances back on track.

Apples2

Of course you did understand it all prefectly well when signing the dotted line to spend the money?

Get you finances back on track by repaying all your outstanding debts, not try to avoid repaying them.

If you feel you have a claim for PPI, get requesting..

Kieron_uk

I'm not saying I am not paying it back, i will conform to the term of the contract. what I am trying to establish is that the contract is wrong. on the contract it states 56.2% apr but when I have put it into a calculator it works out over 70% apr therefore I have been over paying I'm not sure if I've worked it out correct.

tell_it_how_it_is

A loan calculator on the Guardian website gives £2500 for 23 months at 56.2% as £179.85, so with the bit extra for ppi I guess it is correct.

By all means try and recover the ppi bit, but all you can do I'm afraid is treat it as an extremely dozy and very expensive lesson for yourself to learn from.

Kieron_uk

Thank you. Although I still don't think it adds up. The details on the contract are as follows.

Main loan Secondary loan(life insurance)

Amount of credit. £2500. £187.00

Number of monthly
Payments. 23. 23

Amount of monthly
Payment. 184.52. 13.00

Apr variable. 56.2% 48.8%


Total loan 2687.00. Total repayments monthly. £198.32

They state on the contract that the total charges for the loan 1532.26 includes interest and doc fees. Although when I work it out 198.32 x 23 - 2500 it comes out at £2061.32 for the charges. £530 pounds more than it states on the contract

I have made 7 payments of 198.32 and I requested a settlement figure which they say is £2554.72.

opinions4u

Kieron_uk wrote: »

I'm not saying I am not paying it back, i will conform to the term of the contract. what I am trying to establish is that the contract is wrong. on the contract it states 56.2% apr but when I have put it into a calculator it works out over 70% apr therefore I have been over paying I'm not sure if I've worked it out correct.

If you had a first payment more than a month after receipt of funds, I'd hazard a guess that the calculator you used isn't accurate.

Throw in timing of other fees linked to the cost of borrowing and I'd be surprised if the actual cost of borrowing stated as APR is wrong.

Mis-sold loan? Highly unlikely.

Apples2

Apr variable, wonder what that means?
maybe it isn't fixed so could have changed since signing up for this horrific product.

Kieron_uk

Thanks. I am going to settle the loan today.

Bravehearted_2

Kieron_uk wrote: »

Hi, so I have been really stupid and took a loan for £2500 without reading the contract and as I have poor credit the apr is high. I didn't realise how high until my girlfriend found out and she wants to pay off the loan and I pay her back. Avoiding further interest. I have dug out my contract and have discovered that the apr is 56% but further to this they have added life insurance at £187. I knew it included life insurance but at the time thought I had to take it to get the loan (it was a moment of desperation). It also includes PPI At 1.90% per month. The thing is the figures don't add up! The loan should be £2500 56.2% apr over 23 months at 184.52 per mth plus life insurance 187 at 13.80 per month 46.6 apr. I have put this into a calculator and the apr comes out above 70%. I might be wrong but apart from being taken advantage of in a time of need. I feel that the figures might not be correct and I have been mis sold.

Can someone please Advise, as I just want to get my finances back on track.

What kind of gun did they put to your head?
Mis sold but swiftly spent I bet.

At least you're honouring the agreement and paying up as you should.

Kieron_uk

Ok I appreciate that I have took a loan out stupidly and that I understood I had to pay a higher interest rate, and I need to conform to the agreement I signed up for.

The reason for the discussion was to establish wether the agreement is correct as it looked to me they had said I was paying a lower apr than I actually was. (which would be misleading). I have kept to the agreement and have not fallen behind on payments but if I had been paying 70% apr instead of the 56% stated on the contract then surely I should be entitled to get a refund on the percentage I didn't agree to?

mjm3346

Kieron_uk wrote: »

Thank you. Although I still don't think it adds up. The details on the contract are as follows.

Main loan Secondary loan(life insurance)

Amount of credit. £2500. £187.00

Number of monthly
Payments. 23. 23

Amount of monthly
Payment. 184.52. 13.00

Apr variable. 56.2% 48.8%


Total loan 2687.00. Total repayments monthly. £198.32

They state on the contract that the total charges for the loan 1532.26 includes interest and doc fees. Although when I work it out 198.32 x 23 - 2500 it comes out at £2061.32 for the charges. £530 pounds more than it states on the contract

I have made 7 payments of 198.32 and I requested a settlement figure which they say is £2554.72.

Why minus 2500, if you are adding in the repayments for the life insurance (plus the interest on it) you need to knock it off as well, so that would be £299 accounted for (23 @ £13).