Interest

dandydaisy

Hi I am a newbie - last year I bought a Laptop from PC World and used their Credit facilities of 48 months @ £12.30 to pay it off. I have now had a statement from the comopany who they do their agreements through, cos I wanted to pay off what I thought was about £150(I have been putting in extra payments to get the loan down quicker). I have now found that HFC have also been adding £6.50 of interest to my account every month therefore meaning I owe £271. No one told me that this would happen, I have checked all the paperwork I was sent . I assumed that the agreement I had with PC World was the final amount - can they do this? or am I being thick n naive.

Rafter

Your paperwork should tell you the original loan amount - the APR and the total amount payable.

In the small print there will also be details of how they apply overpayments and whether there are charges for settling the loan early.

Based on what you have said, the loan is for a fairly small amount, so the interest rate will be very high in order to cover HFC's costs and the commission they pay to PC World.

If your payment of £12.30 already includes the interest, what you borrowed originally was about £280 and you are repaying £590 in total over 4 years at an interest rate of 53%. This looks high even by PC world standards, so it may be there is some sort of penalty in there.

R.

dandydaisy

Thanks, I thought this too, I have rung HFC and PC WORld and it looks like their figures have been incorrectly set up. It is all sorted now - I hope!!!! Refund of charges on its way