NRAM - Error in interest charges being applied to my unsecured loan account

craaaigo

gavman99 wrote: »

The term of the loan is surely irrelevant here ? Stating the obvious here, but surely the interest covers exactly that, interest charges only. The capital is reduced by an amount equal to what I pay to them minus what I get charged in interest.

Yes sorry I asked that because I was trying to work out if the excess amount bit represented capital being paid off, thus the term would have been relevant but thats obviously not the case. I'm stumped as well i'm afraid, the only other possible solution i could think of is if you added any fees to the loan at the time of taking out the mortgage?!

gavman99

I did, but again, that is surely irrelevant as all those fees are all bundled up into my balance. This should be a "simple" calculation based on daily interest charges on a single amount.

gavman99

Can anyone else comment on whether or not I'm barking up the wrong tree here ? Thanks.

DevCoder

Interest is normally charged at the end of the month so where you have calculated 34 days at one capital amount this would actually be 31 days at one amount then 3 days of capital plus the interest.

gavman99

krisdorey wrote: »

Interest is normally charged at the end of the month so where you have calculated 34 days at one capital amount this would actually be 31 days at one amount then 3 days of capital plus the interest.

The daily interest rate before and after payment reduces by a mere 20p a day. So if what you're saying is correct, then that would account for approx 60p for that specific month.

Worse case example, multiply that by 4 months to cover the statement period works out at £2 to £3.

Still nowhere near the £65.56 I calculate it to be.

I might email Northern Rock and ask them to provide a detailed breakdown of how they came to calculate the interest charges for that statement period.