Loan Settlement Figures

Willsy

Hi,
Has anyone else ever been given a loan settlement figure and thought that it was incorrect??
I used to work for a high street retail bank and would often see people take out personal loans, make one or two payments, and then decide to settle them to move to another lender, only to end up paying more money than they originally borrowed to settle the loan, even though they'd made one or two substantial payments!

Anyway, I'm looking for some help, I am trying to settle a loan that I have, and the figure that my bank have quoted me appears to be about £300 more than it should be. For example, the total amount of interest payable on my credt was £968, and after 18 payments, the settlement figure appears to show that I have paid around £650 interest. How can this be right? The loan was taken over 48 months, yet the interest paid seems to add up to about 65% of the toatla interest, although I am only about 40% into the loan???

I've heard that banks make you pay mainly interest at the start of the payment period, but this seems like my early settlement figure is giving them a lump sum that they are not due as I haven't completed the term of the loan?!

Has anybody got any tips or advice on this one?!?!

Thanks

Ben

fast_track

Check your contract - that should give details. If there is nothing in there that indicates that there are no early payment penalties then ask for a complaints procedure, follow it then, if they don't give the settlement figure you think is right then take your complaint to the Financial Ombudsman service.

TMF

do you have ppi on your loan?

Deleerious

I was paying back a loan @ 18.9% as of today. After a snotty letter to lloyds tsb bank they agreed to wipe off the outstanding PPI and re negotiate the loan @ 8.9%. HALF of what i had before also less 17 months re - pay saving £££'s in interest.

pinkpeewee

hi deelerious - i am having a prob with my loan repaymets with lloyds tsb - how di u go about sorting it out as what happened to u would be great it could be done for my loan

CLAPTON

if you would like to say

when you took the loan out
the amount borrowed
the period of the loan
the apr
how many payments you have made
how much the monthly payment is
and the settlement figure
then it might be possible to made some assessment of the situation

frugalpam

fast_track wrote: »

Check your contract - that should give details. If there is nothing in there that indicates that there are no early payment penalties then ask for a complaints procedure, follow it then, if they don't give the settlement figure you think is right then take your complaint to the Financial Ombudsman service.

I'd agree with that. Citifinancial are trying to rip me off at the moment, but I'm also in the process of making a complaint about them to the Financial and Leasing Authority, and may well take it to the Ombudsman.
Check out whether they are applying the Rule of 78, which has now been abolished for certain loans, due to its unfairness to the consumer.

Pam

Andympgs

im looking for a settlement figure with welcome finance, the original payment was over 48 months, but i cancelled the gap insurances, leaving me to pay £7500, which will cripple me, the company have already destroyed my account with confusing tactics which nobody has seemed to get to the bottom of including the financial ombudsman, i now need this chunk paid off asap, i was thinking of taking out a 0% loan or credit card to pay it off but is this really a wise choice as indicated in other forums? help my bloody head hurts thinking about this.

countrymusicfan

I am just getting more and more confused. Web pages talk about some Greek figure and and I got lost. I borrowed £1000 because my father died and I needed to get to the funeral fast. I have to pay back £2000 over two years. I know, don't borrow from Provident, but I had only 1 week to get every thing done and I couldn't get any one else to lend me the money. Any way, I will have £2000 next week, but need to send as much as possible back to America because of things being done over there. How much will I have back to send over there? I don't understand it at all. I know I would like to be able to pay off this loan all together and have something back, but am confused.

redpete

countrymusicfan wrote: »

I am just getting more and more confused. Web pages talk about some Greek figure and and I got lost. I borrowed £1000 because my father died and I needed to get to the funeral fast. I have to pay back £2000 over two years. I know, don't borrow from Provident, but I had only 1 week to get every thing done and I couldn't get any one else to lend me the money. Any way, I will have £2000 next week, but need to send as much as possible back to America because of things being done over there. How much will I have back to send over there? I don't understand it at all. I know I would like to be able to pay off this loan all together and have something back, but am confused.

1 - It's really better to start a new thread rather than resurrect one that's 3 yrs old.

2 - How much will you have to pay back with early repayment? No idea, Provident will give you the most accurate figure, or check the Ts&Cs which should explain.

3 - Greek figure?

Rosalynd

I have a question for people if they can lend me you opinions?
I had a customer who offered to repay a debt with a settlement figure as this was in dispute. Unfortunately my client returned and said no to this, however, he had already sent a letter with a cheque for £700 (the debt was £900) and included in the letter this was full and final and he considered the matter now closed. One of my collegue in my absence banked the aforementioned cheque and never replied to the gents letter to advise him this was not accepted. I am having difficulty seeing why he can do this as i am adament if this is a mistake it is my collegue mistake and therefore the gent should not have to repay the funds however i seemed to be overuled in my work and it is really annoying me because i know i'm right.

Can anyone lend me there views and expertise here?:wall::wall::wall: