Mis sold loan apr wrong

Apples2

Kieron_uk wrote: »

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?

Sadly you agreed to a variable APR, it could be 150% by now.

Good news that you are clearing the silly thing now though. :j

savageHK

Do they state what the 'doc fees' are; if they've added them on to the loan it would possibly affect the answer. But yes, my quick calc also gives an APR in excess of 70%. The insurance being on a different APR isn't helping but as it's a lower APR that should bring it down!

mjm3346

savageHK wrote: »

Do they state what the 'doc fees' are; if they've added them on to the loan it would possibly affect the answer. But yes, my quick calc also gives an APR in excess of 70%. The insurance being on a different APR isn't helping but as it's a lower APR that should bring it down!

To get anywhere near 70% you are including the cost of the life insurance and the repayments on it without accounting for it as additional borrowing (it was a secondary loan).

Total borrowed was £2687 with 23 repayments @ £198.32 this gives an apr of 59.435%, the online calc I used will have assumed a term of 23 months but if the borrowing was actually over 2 years then the apr would be lower and quite probably the amount signed up for.

Kieron_uk

Thank you,

It states document fees - £161 this was the first payment then to be followed by 23 payments of 198.32.

From what MJM says it sounds correct. Costly lesson learnt.

Thank you everyone for your input. I am looking forward to being completely debt free in June 2013 and not ever commiting to such a daft agreement.

tell_it_how_it_is

Glad you're able to clear it faster and save some dosh - good on your other half, reckon she deserves a slap-up meal off ya!

I just wish lenders had to put the amount borrowed and the amount paid back in big numbers and letters at the top of any agreement, as it might have helped you (and indeed help others) just to realise how much you can be fleeced for!

Kieron_uk

Yes i'll definitely treat her,

There should be a law which makes them clearly state how much this loan will cost in full.

The APR is very confusing.

~Brock~

Kieron_uk wrote: »

There should be a law which makes them clearly state how much this loan will cost in full.

Errr, that would be the Consumer Credit (Disclosure of Information) Regulations 2010 wouldn't it?

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