Settling HP early - high settlement figure?

liamx10

hi, im looking to settle the finance on my car, it was for 36 months but after 10 months ive come into a tax rebate and am looking to settle it early.
i started a live chat with the loan company after finding the settlement figure, however was disconnected and now the website has "closed" for the day. it went like this...

Visitor

:

Hi, I borrowed £8664.50, 9 months ago with a 10% interest rate over 36 months. having the loan less than a year i make that £9530.95. I've made 9 payments of £316 since then(£2844). I've been quoted a settlement figure of £7327.40.
£9530.75 less the payments I've made is £6686.95. Can you explain to me how the settlement figure is so much higher? I was told there's no early settlement fee and I can't be charged for the interest on the next 2 years of the loan if I pay it off before then.
Thank you
10:31:21

Operator Tom joined the chat
10:32:04

Tom

:

Hello and welcome to the MotoNovo Finance online chat service
10:32:08

Tom

:

Do you have your agreement number or vehicle registration?
10:36:45

Tom

:

Thank you for confirming these details. The total repayable throughout the term of the agreement (including interest and charges) is £11508.50.
Your current settlement figure of £7327.46 is worked out based on 1 months interest, your remaining finance and the final 'option to purchase fee' of £159.00.
10:38:01

Tom

:

Because the majority of interest is front loaded this means that most of what you have paid so far has gone towards payment of the interest

the initial amount borrowed was actually 8599, not 8664 (the amount owed, according to their settlment figure)

am i right in thinking that im being charged for the majority of the 3 years interest, although i want to settle before even one year? and if so, whilst looking it up on various websites, some have said that this isnt allowed? i intend to contact them again tomorrow, but id like to have as much knowledge as i can before i do.
thank you

DCFC79

What does your loan contract say about early termnation/paying off early.

liamx10

i cant find the contract at the moment, but i know there was no early settlement fee