Extortionate Early Settlement Figure

BessieandBertie

Hello

I would welcome people's opinion on an early settlement figure I have received from Everyday Loans.

I took a loan for 3100 from everyday loans on 15th February 2013 but immediately regretted it. However on the day I fell for the very heavy sales pitch which said they were doing me a huge favour lending to me because I was such a huge risk and they were my only option other than a debt management plan. However if I were to repay the loan early there would be no penalty at all (in fact they told me this several times.)

When I came to my senses and did the sums I realised that the repayments would seriously over stretch me each month but not to worry because it turned out that I wasn't a huge risk and got a much better loan deal so asked for a settlement figure to rid me of Everyday Loans. In the interim I had paid one installment of 197 (the rest of the repayments were 283 over 3 years, the APR being 149%!). At least I thought this first payment was an installment, as they told me it was, but on reading the small print (an entire loan agreement on two sides of A4 in extremely small print!) it turns out this was a "documentation fee".

So when I asked for a settlement fee in early March you can imagine my surprise when it came back at 9,616.55. Does this figure seem right? I've put the figures in an early settlement figure calculator and this seems far higher than the figure I got out of that.

So this whole sorry episode has amassed another 1,000 in debt over the course of just a month. Yes, yes I know I was silly to take out this loan but are they ripping me off yet again?

Opinions/advice gratefully received.

izools

Did you have sight of a credit agreement within 14 days of receiving the loan funds?

What does this state as the start date of the agreement?

What does it state surrounding early settlement?

When did you advise you wanted to cancel the agreement?

Apples2

Are you sure it is a SETTLEMENT Figure they have given you and not an Outstanding Balance?

If it is a Settlement, it will only be valid for a maximum of 30 days and should say so on the document.

SeanG79

The figure you have will be an outstanding balance as opposed to a settlement figure, the agreement will be regulated unless it is a loan secured against your property and as such the early settlement penalty with be ±58 days interest and not the full outstanding balance.

BessieandBertie

Hello

No this really is the settlement figure. The outstanding balance they are quoting me is £9,916.55!!! This does sound wrong doesn't it?

Unfortunately the answer to all the other questions ie did I see the credit agreement within 14 days and did I notify them that I wished to cancel after 14 days of the start date of the agreement (although this wasn't the date they gave me the money) is yes.

As far as early settlement goes they say it is the outstanding balance on this agreement on the settlement date less any rebate and they have very kindly given me a rebate of £5,935.26! However this settlement letter is the only piece of paper which quotes £9,916.55 as the outstanding balance. In the loan documentation - rats can't lay my hands on it at the mo - but it is something in the £3,400 region.

Do you think this is worth running by a solicitor? The settlement day is fast approaching so I was going to pay and then challenge just to be rid of these horrible loan sharks or is this the wrong way to do this and that's the last I will ever see of my money?

sistafromanothermista

Is the interest not accrued daily?
That seems an awful amount for a loan you have only had for 2-3 months....

SeanG79

Ok so outstanding balance is £9,916.55, less the rebate of interest of £5935.26, hence you will owe £3,981.29 as a settlement figure.

sistafromanothermista

That makes more sense......

BessieandBertie

Hi - it may make more sense and sorry my typing overtook my brain but I still think it is extortionate!

Anyway to update on this saga - On 3rd April 2013 I got a call from someone called Linda Reed from Everyday Loans who said she had noticed these posts (and tracked me down by them! - that must have been something I missed as thought I was posting anonymously) and everyday loans have a 45 day money back guarantee so I only had to pay 2900 to clear my loan. Obviously (and extremely rashly) I jumped at the chance and paid it off there and then. She said she would put something in writing to confirm the loan was paid off and it also shouldn't have appeared on my credit file within the initial 45 days, which it currently had, but she would get it removed. Well nearly a month later I have had nothing in writing, this loan is still on my credit file and the woman - purportedly the head of audit and compliance at everyday loans - is not answering my telephone calls.

Well either I have been well and truly had (my immediate response when I put down the phone being - that was too good to be true) or Everyday Loans are even worst than I thought - either way I would very much advise everyone to avoid them like the plague in the strongest possible terms.

Matt123

That sounds very suspicious to me. You didn't give out debit card or bank account details over the phone did you? Who was the payment made to?

addyboy1982

Did you pay by bank transfer or did you do it off your debit card?