When is a Settlement figure not a Settlement figure?

Richard_E

I took out a personal loan toward the end of 2016, for £1200 over a 12 month period. Due to some changes to my personal situation I was able to settle this amount in January.
I paid the January payment, then contact them to discuss what the settlement amount would be. I was advised that the amount was £996.89. This was confirmed as the required amount to be paid, and would be the amount payable up to the 3rd February 2017.
I contacted the team and settled the account in full, as per the agreed figure supplied by them. This was paid on 9/1/2017.
I have since been contacted by them, advising me that an outstanding amount of £131 is still owing?? They are stating this is the interest for the period of the loan, yet my understanding is that the settlement figure was calculated with all this taken into account?
Where do I stand here? I have asked them to supply me with details as to how the calculation was made and why it now differs? Do they have a legal point to recover this money when I have settled an account in good faith believing this to be the full and final payment? I know when I had paid this amount, they advised it was fully paid and that they would take my card details from their system? Where do I stand please can you advise?

Arleen

Do you have any proof of what you say that they have said? A confirmation email, call recording etc?

Richard_E

The company themselves will have recorded the message, as it tends to be the practice of most telesales companies.
They took the payment on a debit card, to the value of the agreed amount (albeit verbal) which was reconfirmed when I called back to pay it by a 2nd member of staff. Unfortunately I did not receive an emailed confirmation of the amount.
I have requested a full breakdown detailing why they failed to give me the correct figure and to date they have not been forthcoming with this information

GazHatesBanks

I think this could this be the February payment?


If that was due on or before the 3rd February (the date given for the expiry of the settlement figure) then the settlement figure will assume that this amount has also been paid. In reality, because you settled before this then the payment has not (yet) been taken.

PeacefulWaters

Did monthly payments made plus the original settlement figure even add up to £1,200?

foxy-stoat

I have called up for settlement figures before, figure they quote sometimes doesnt include the next payment, depending on the number of days till the next payment.

Richard_E

In answer to the questions,

When requesting the settlement quote, I was advised this was correct up to the day before next payment was due. (payments went out on the 4th by debit card)

The payments already made, plus the settlement do add up to more than the amount the loan was for thus suggesting that the overall amount did include the "interest levied" for that period (or charges therein)

Thanks for all the comments, as it helps me to work through this logically