Everyday Loans Repayment query

jojobeany

Hi All,

This is my first post, as I usually spend days searching for another circumstance to answer my question but I can't with this one...

I took out a loan with Everyday loans (big mistake) and am lucky enough to be able to pay it off early, however the settlement figure seems extortionate and I'm loathed to pay it without checking if it's right.

Obviously they don't help in any way.

Basically: Loan was just under £3,300 over 24 months. Monthly repayment is £255.35 APR was 65.9%/89.9% (depending on the way it's noted).

I've made 11 payments so far (£2,808.88) and the settlement figure is still £2,580.49. How can this be when I'm nearly half way in to the 24 months?

Any help or guidance on this would be really appreciated!

Thanks :-)

Foxy-Stoat_3

£2828.40 is the interest over 24 months, you have paid £1296.35 in interest for the last 11 months.

£3300.00 plus £1296.35 = £4596.35 so £793.02 must be the charge for ending early. Still making a saving of £739.03 if you don't settle early.

I would read the credit agreement first, as normally standard loans only charge 2 months interest for settling early, but at the interest rates you have quoted, this is not a standard loan.

[Deleted User]

On that sort of APR, that looks about right. Most of your payments will have gone towards the interest.

jojobeany

I've just had a chat to them and the agreement doesn't include the repayment figures at set-times throughout the year, as per the consumer credit act 2004 (early settlement). You don't happen to know if I can argue this to reduce what the settlement figure may be, as they haven't done what they should have when I took the loan out originally?

Foxy-Stoat_3

jojobeany wrote: »

You don't happen to know if I can argue this to reduce what the settlement figure may be?

Very much doubt it, they are a loan company for people with bad credit, so everything is going to be higher, interest rate, settlement charges.

Just pay up and move on.

Tixy

The settlement figure is the capital balance outstanding and 58days interest.

It looks correct based on the rough figures you have given, with the 58 days interest likely equating to around £240.

jojobeany

Thanks everyone for your help, it's really appreciated... Paid off and putting it down to a bad mistake I won't be making again!