Car Loan with Capital preloaded £2000 charge

Rico2007

I've requested a settlement figure with Capital Bank and very shock to find out that they charged me £2000 up front for my loan. I bought a car and the garage finance come to £18,354 to be paid over 5 years. When I asked for a settlement figure from Capital Bank they told me my outstanding balance was £20,754. I've asked them why it's not the same as the garage told me. They said they have preloaded an interest of £2000. I bought the car back in March 2007 and asked for a settlement figure only this month (Sept 2007). The remaining balance to pay is £16,754.
My question is, the garage didn't inform me about this arrangement they made with the Bank and Capital Bank never informed either that I will be charged for this amount. I thought the Bank is only allowed to charge 2 months interest when you settle your account.
Any feedback/advise will be greatly appreciated

snowmaid

Rico2007 wrote: »

I've requested a settlement figure with Capital Bank and very shock to find out that they charged me £2000 up front for my loan. I bought a car and the garage finance come to £18,354 to be paid over 5 years. When I asked for a settlement figure from Capital Bank they told me my outstanding balance was £20,754. I've asked them why it's not the same as the garage told me. They said they have preloaded an interest of £2000. I bought the car back in March 2007 and asked for a settlement figure only this month (Sept 2007). The remaining balance to pay is £16,754.
My question is, the garage didn't inform me about this arrangement they made with the Bank and Capital Bank never informed either that I will be charged for this amount. I thought the Bank is only allowed to charge 2 months interest when you settle your account.
Any feedback/advise will be greatly appreciated

I would also be very interested in this answer as we are having to buy a car due to ours really being on its last legs!! :rolleyes:

CLAPTON

could you be a little more clear about the figures

what was the original loan amount (without interest)
how much was the interest
what was the APR
what was the monthly payment
how many months was the loan over
how many months have you already paid
did you sign up for PPI ..if so how much was it
what is the settlement figure now and is the a breakdown of the figure
was it a HP loan or simply a 'ordinary' loan
what do the T&C say about early settlement