Reclaiming Loan Interest Paid after 4 Months?

waffles

Just looking for a bit of advice or wondering if there is any precedent set for a situation such as mine....

£8200 Loan for 5 Years with Halifax taken out in November.
(25% Interest Rate) & paid £916.40 (4 x £229.10) so far.

As part of online banking I noticed the final settlement figure of the loan today would be just £62.03 less the £8200 originally borrowed money.

I have the £8200 now unexpectedly to pay back but they want back £8137.97.

Effectively borrowing £62.03 over 4 months has cost me in total £916.40.

Now I COMPLETELY understand Halifax haven't done anything wrong at all (except charge me 25% interest!) and I agreed to it and I understood fully what I was doing but I wondered if there was any precedent set for such an early repayment where it could be deemed unreasonable to pay £900 for borrowing just £62 over 4 months!

What I'm really looking for maybe is a letter template as I wouldn't know where to start requesting this be looked at by Halifax for me!

Thanks for any advice in advance

PeacefulWaters

any precedent set for such an early repayment where it could be deemed unreasonable to pay £900 for borrowing just £62 over 4 months!

You didn't borrow £62. You borrowed £8,200.

25% of £8k is £2k. Allowing for two penalty months of interest for early settlement you'd expect to pay close to half this. Which is what's happened.

Pay up. There is no way out.

waffles

True - I don't know why I was thinking of it that way round - of course I borrowed £8200 for 4 months - lol.

Ah well - you live and learn eh?!

PeacefulWaters

waffles wrote: »

True - I don't know why I was thinking of it that way round - of course I borrowed £8200 for 4 months - lol.

Ah well - you live and learn eh?!

Love it.

You do realise at this point you're meant to dig your heals in, insist that you're right and insert phrases like "scam", "rip-off" and "outrageous bonuses".

None of this namby pamby "oh yeah I see what you mean" stuff!

waffles

:beer: Haha, maybe I'll just send a polite letter and ask (beg) for some kind soul to be nice - you never know if you don't ask eh?!

I'll mention something about bonuses

fozmcfc

I'm no expert, but I've many the time seen advice from members here, that, you can pay back a lump sum, leaving the final payment to come out and end the loan.

That way you can avoid the 2 months repayment penalty.

Hopefully someone will come along to confirm this for you, so don't disappear.

McKneff

PeacefulWaters wrote: »

Love it.

You do realise at this point you're meant to dig your heals in, insist that you're right and insert phrases like "scam", "rip-off" and "outrageous bonuses".

None of this namby pamby "oh yeah I see what you mean" stuff!

##


ooh, PeacefulWaters, you are a one.....


Love your sense of humour, that one really did make me smile.


Annie

waffles

fozmcfc wrote: »

I'm no expert, but I've many the time seen advice from members here, that, you can pay back a lump sum, leaving the final payment to come out and end the loan.

That way you can avoid the 2 months repayment penalty.

Hopefully someone will come along to confirm this for you, so don't disappear.

Oooo this may be worthwhile if the case as I'm sure 2 months worth 25% interest on £8000 is actually quite a lot!!!

waffles

How does this sound:

"To Whom It May Concern

I would like to request a reduction to the Loan Closure amount given to me online.

The reason for this is an unusually early settlement of the loan which begun in November 2013 and has just lasted so far 4 months which was originally expected to last 5 years,
I borrowed £8,200 and have so far paid back to you £916.40 in 4 monthly repayments.

The figure given to me to close the loan today is £8137.97 representing just £62.03 of the repayments so far going towards the actual balance borrowed.

As a long standing customer of Halifax, having banked with you and borrowed from you for nearly 10 years. I hope that on this occasion, as a gesture of goodwill, a reduction in the balance owed to close the loan account may be possible."

PeacefulWaters

waffles wrote: »

How does this sound:

"To Whom It May Concern

I would like to request a reduction to the Loan Closure amount given to me online.

The reason for this is an unusually early settlement of the loan which begun in November 2013 and has just lasted so far 4 months which was originally expected to last 5 years,
I borrowed £8,200 and have so far paid back to you £916.40 in 4 monthly repayments.

The figure given to me to close the loan today is £8137.97 representing just £62.03 of the repayments so far going towards the actual balance borrowed.

As a long standing customer of Halifax, having banked with you and borrowed from you for nearly 10 years. I hope that on this occasion, as a gesture of goodwill, a reduction in the balance owed to close the loan account may be possible."

Honest view?

I think it's a complete waste of time.

There might be some mileage in post #6 though.

waffles

I agree - I'll still send it though

With regard to post #6, I checked the terms on full or partial payments and they both carry the 56 days interest thing so in my case I'm afraid it won't help me.