Shawbrook Bank Loan - Repayment issues

RensterUK

Hi All,

We recently took out a loan (by way of credit agreement for a new bathroom) with Shawbrook. The plan was always to pay off the loan almost immediately, but figured by using a credit agreement via the bathroom company, we'd have "protection" if things went wrong.

Anyway, the opening balance was £5918, and the first repayment taken, as scheduled, of £117.80 in December last year.

Then in early/mid Jan, I called Shawbrook to settle. I was given a figure of 5744.32, leaving just a few pounds (57.64 plus interest outstanding) to be taken by DD also in Jan to then automatically close the account.

Then in Jan they took a further 117.80. We didn't (stupidly) look closely at this - but trusted them at this point - figuring the settlement figured had been calculated to leave a full months payment. Seemed logical. This also shows up on my wife's statement (DD from her account) as a final payment.

Then in Feb, the fun began. They tried to take a further 57.64 as final payment - which was rejected, and the payment returned, flagged as "unpaid". They wrote to us with the usual snotty letter, saying a 15 charge was to be added as a result. I phoned them, and was promised a call back within 24 hrs. Unsurprisingly, 24 hours came and went without the call. Meanwhile, my wife investigated, and her bank confirmed the DD was still in place on her side, but had been cancelled on their side. I called them again, where they acknowledged the mistake (with the bounced payment) had been theirs - they had adjusted the DD duration incorrectly after the overpayment (as opposed to the requested settlement figure) of 5744.32. They confirmed that the 15 charge had been dropped (how generous of them!), but maintained the £57.64 was still outstanding. They also assured me no negative impact will have been made on either my wife's, or my credit report. I'll be monitoring that closely in the coming weeks.

So my question is - can anyone explain how, with an APR of 19.9%, an opening balance of 5918, two payments of 117.80, an overpayment of 5744.32 - how can 57.64 still be outstanding?

Also, given that it is US having to chase THEM for their errors, and failure to settle the account as I had requested - what rights do we have / what should we be looking for from them to resolve this to OUR satisfaction, as opposed to theirs? Would suggesting they write off the 57.64 (assuming that it is owed in the first place!) be unreasonable?

Thanks

SH

jonesMUFCforever

Any early repayment charge?
You mention ''protected'' - does this may there was some kind of premium added to original loan?

antrobus

RensterUK wrote: »

....So my question is - can anyone explain how, with an APR of 19.9%, an opening balance of 5918, two payments of 117.80, an overpayment of 5744.32 - how can 57.64 still be outstanding?.....

Because an APR of 19.9% means that you'd be paying about £98 in interest a month?

RensterUK

Sorry, when I said protected - I didn't mean in terms of the finance itself, but in terms of the bathroom we were getting ... long story there!

I appreciate the monthly interest but from what I can see, 19.9 APR is about 1.524 Monthly... so figures (rounded to the nearest pound!)

Mth0 = account opened, 5918 opening balance
Interest charged = 5918 * 1.524/100 = 90
Mth1 = 5918 + 90 - 118 = 5890
Interest charged = 5890 * 1.524/100 = 90
Mth2 = 5918 + 90 - 118 -5744 (when we made the "settlement" payment) = 118

Suggesting in Mth 3, 118 was owed... Rather than the 57 they are saying. So clearly I'm getting something wrong here... Also, on my wife's bank statement, the 117 taken in Mth2 shows as "final payment"?!?

Confused

Gaz83

RensterUK wrote: »

Mth2 = 5918 + 90 - 118 -5744 (when we made the "settlement" payment) = 118

5,918 + 90 - 118 - 5744 = 146, not 118

Gaz83

Also: do they charge interest at a daily rate?

RensterUK

Interest calculated daily. First 118 went out in Dec, Second went in Jan, just after the 5744 - this second 118 showed on wife's statement with the reference "final payment" - Now they want the additional 57....

xHannahx

from Shawbrook FAQ section on their website.

https://www.shawbrook.co.uk/consumer-lending/customer-frequently-asked-questions/home-improvement/

Can I settle my home improvement loan early?
You have the right under the Consumer Credit Act 1974 to repay all or part of the outstanding balance at any time. If you wish to repay the outstanding balance early, please contact us on 0845 650 6290 (Monday to Friday, 9am to 5pm, excluding Bank Holidays) and we can provide you with a settlement figure upon request. If you wish to settle your account, the settlement figure we calculate for you will include 28 days’ notice and an additional 30 days’ interest (which we are entitled by law to charge). It will also provide details as to how to settle the account.

RensterUK

Thanks for the input all.

Phoned them a couple of days ago, and requested a full statement on the account, which they agreed to send out.

Had a voicemail from them yesterday evening, so I just called them back.

Mysteriously, they've suddenly decided to waive the outstanding £57.64!

Call me cynical, but I sense they've not done that out of generosity?!? Either way, we're back to owing them nothing - Hooray!

Nonetheless, I would advise people to avoid Shawbrook in future. They've made a right pigs ear of this it seems to me (2 payments taken from my wife's bank - both marked "final payment"... The latter of these was returned marked "unpaid" - and this incurred a late payment fee - and this returned payment and fee was due to their own error! They gave me a settlement figure which apparently WASN'T a settlement figure (although given that they've not been particularly open as to what exactly went wrong, I wonder if it WAS).... etc etc

Either way, it seems to me that it's only down to us looking closer into what happened, and being inclined to challenge them on it all that we've got the result we have. I wonder how many customers would have blindly just paid the 57 quid, PLUS the 15 late payment charge - and boosted SB's profits nicely....

Thanks again for your help!

SH