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Over payments on a Sainsburys loan
Hi I have a Sainsburys loan of £5000 at 5.8 over 4 years%, I have made 4 payments of £116, last month I made an over payment of £250 as I got a little extra from work. Today I received a letter thanking me for my over payment, in the letter it also said
"in calculating the remaining total amount payable we have taken into account a reduction in the total charge for credit that you have to pay on your loan of £56.60 (this amount is called statutory rebate) The statutory rebate has been calculated having regard to the consumer credit (Early Settlement) Regulations 2004
What does the above statement actually mean? I know they can charge me an additional 56 days interest on the loan for early repayment, I intend on making more overpayments each month with my spare money but not if it's going mean me paying more back. Can anyone explain what is going on.
Thank you
"in calculating the remaining total amount payable we have taken into account a reduction in the total charge for credit that you have to pay on your loan of £56.60 (this amount is called statutory rebate) The statutory rebate has been calculated having regard to the consumer credit (Early Settlement) Regulations 2004
What does the above statement actually mean? I know they can charge me an additional 56 days interest on the loan for early repayment, I intend on making more overpayments each month with my spare money but not if it's going mean me paying more back. Can anyone explain what is going on.
Thank you
0
Comments
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That says to me that you have saved £56.60 in interest over the life of the loan by making this overpayment.loose does not rhyme with choose but lose does and is the word you meant to write.0
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£56.60 seems like a large saving for a £250 overpayment?0
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£250 for 44 months at 5.8% per year is something over £50 so their figure seems reasonableloose does not rhyme with choose but lose does and is the word you meant to write.0
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What is all rubbish? Loans?0
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