CDL Interest Repayment

Dan_L_2

Hello all,

I took out a Career Development Loan in 2010. I have been making the monthly repayments on time. However, my financial circumstances [for the better] have changed and last month I called Co-Op (the loan facilitator) to request a partial repayment of 70% of the outstanding loan. They quickly sent me a repayment letter stating the amount to be repaid, however they failed to include the two months interest payment, nor did they notify me the amount of interest I'd have to pay in the repayment letter. I paid the amount I requested to pay off (as stated in the letter they sent me).

I thought that was the end of it. I'd paid 70% of my loan and Co-Op at no point stated the amount I'd have to in interest. Today I've noticed Co-Op has added the interest onto my loan. It is several hundred pounds worth of interest. Can they do this? At no point did they inform me of the amount of interest I'd have to pay. Further, the partial repayment letter they sent to me made no comment on interest repayment.

Thanks

Dan

Apples2

Put some figures up, your post makes little sense.

It reads as if you thought repaying 70% would mean the loan has ended with nothing more to pay.
Stating interest is of no consequence, you just make a large overpayment and carry on paying as before (but the loan finishes sooner)

Interest will of course continue to be added as there is still a balance outstanding. Several hundred in one hit doesn't sound right though.

You haven't stopped the monthly payments have you?

Dan_L_2

To simplify my question. It is related to interest payment on a partial loan repayment. Note this is an additional payment to reduce the overall loan.

I am continuing to repay the loan as in. However, I made an additional payment to reduce the overall amount outstanding.

In accordance with the loan agreement I had to call up and request a settlement. This is where they'd calculate the interest to pay for the partial resettlement. I received the settlement figure however they failed to add on the two months interest according to the loan agreement. I paid the figure about a month a go.

Today they have deduced the interest from my loan account. However, shouldn't they have notified me at the time of making a partial repayment the figure for interest? At no time have they notified me of the interest to pay on my partial repayment.

gingergnome

I don't have any words of encouragement/advice but I am in a very very similar situation.

Took out CDL with Co-op in 2008. Entered repayment in 2009.
After one year, no interest applied to my account.
Co-op said this is due to computer glitch affecting many accounts that year (!). Applied one years interest and set up account to calculate 1/4ly interest on outstanding amount of loan from then on.

Fast-forward to this month: statements all show I currently owe a small amount of money. Phoned up to check about something and was told that not all my interest has been showing on my account and I still have to keep paying my regular monthly amount for *at least* another 8 months but maybe longer.

Co-op are investigating (but apparently all my previous notes have been wiped from their system - another computer glitch!!). I've spoken with the Ombudsmen this morning who agree there is a case for complaint.

I recommend you also get in touch with the Ombudsmen (phone 0300 123 9 123) as they were one of the banks who were in trouble a few years ago for not putting all the correct information on loan/mortgage statements. Who knows how many more of us with CDL are having these interest-related problems!?

Hope that you manage to get your issues resolved okay. Best of luck!

CLAPTON

Dan_L wrote: »

To simplify my question. It is related to interest payment on a partial loan repayment. Note this is an additional payment to reduce the overall loan.

I am continuing to repay the loan as in. However, I made an additional payment to reduce the overall amount outstanding.

In accordance with the loan agreement I had to call up and request a settlement. This is where they'd calculate the interest to pay for the partial resettlement. I received the settlement figure however they failed to add on the two months interest according to the loan agreement. I paid the figure about a month a go.

Today they have deduced the interest from my loan account. However, shouldn't they have notified me at the time of making a partial repayment the figure for interest? At no time have they notified me of the interest to pay on my partial repayment.

could you say exactly what the T&Cs say about overpayments?