Egg Loans

Davedog_2

Hi i am wondering if anyone can assist me.

I took out an Egg loan March 2006, 7 years ago, Obviously it was bought out by Moorgate loan servicing through no fault of mine as no payments missed in all the time i have had the loan so when i got the letter i just though carry on as usual and pay by DD.

Anyway to cut a long story short. i Have had statments off the company yearly but never read them as thought it would say only £187 paid as per agreement. Well i have looked at the latest one to see i am being charged interest every month for the outstanding balance. I have questioned the comapnytoday by phone and they say it was per agreement when took out the loan. i have hunted high and low for the loan agreement but cannon find it
I do not think this is right. I agreed to pay £187 for 7 years and i thought the interest is included in the full amount shown when i took it out.
I was wondering if anyone else has encountered this company and have they had an egg loan similar?? As it stands now i have £187 to pay this month then the remainder next month which would take the loan to over 7 years to which i am concerend the company who took over my loan from egg have added extra to my loan??

In the meantime the company were helpful to be fair are requesting my loan agreement be sent to me. But i still think i am right hmmmm

bigadaj

If you post the sum borrowed, interest rate and time period someone might have a stab at telling you if the sums add up.

debtcutter

Do you mean that month after your 7 years is up, you still have a small amount left to pay (less than your usual payment amount?)

If so, then it's probably something to do with either:

- A payment holiday/break at some point in the loan
- Your first payment at the start of the loan was more than 1 month away from when the loan was paid out, meaning that a small amount would be left at the end.

There are other options, can you post your monthly repayment amounts and when you get the agreement sent out, may be worth adding the date paid out and the date of first payments.

Also, if you've moved your payment date during the loan, say from the 5th to 25th of the month, on one month you would have probably accrued an extra 20 days interest that continued to be charged interest throughout the life of the loan, which could extend the length of the loan by a month, i guess, if the last payment is much lower.

Have they told you whether it's just 1 extra payment and what amount it will be?

Davedog_2

Well i will have to wait for the agreement to be sent to me now to have a look, but throughout the loan the payment day has always been the same and no holiday breaks have been taken.

Every time i have taken a loan out previously you agree to an amount to pay back and thats it,

i've never had an agreement where you pay a monthly payment then have added interest on the remaining balance each month?

Currently i pay £187 per month which has remained the same since March 2006, i've worked out i pay this months on Friday 15th(Pay day) then i will be left with around £50 left.

Its the statment from Moorgate which has thrown me seeing intrerest added each month after my pasyment has been made and the interest rate for the last year 2012 til present set to 6.7%