wifes personal loan

baffaroony

Hi all, three years ago my wife took out a loan for £5000 from Barclays, for a five year term! at 13.9%
With all the interest and repayments over the term she would end up paying back around £8000
She has recently settled the loan ,only after three years, and been charged the full amount ( 8000)
According to Barclays she was required to pay the interest first and then the amount of loan!
My question is this can they charge interest for a five year period even though the loan was settled early? it sounds dodgy to me!
Any thoughts or advice would be most helpful
kind regards,

Rafter

The rules about refunds on loans have changed but I cannot remember the date or whether certain types of loan agreement are exempt.

I suggest the first thing to do is to complain to Barclays in writing. Say that this was not made clear when signing the agreement and would be illegal under current consumer credit law.

I think you may be entitled to a refund of about £400 which is the interest on the loan for the next couple of years.

Problem is after 3 years you have paid most of the interest, and most of your payments are going towards paying off the loan, so the benefit of paying off early seems a lot less.

Good luck.

R.

baffaroony

Hi Rafter many thanks for your post, i'll start first thing a.m
Best Wishes...Baffaroony