Stealth Interest secured loan Lloyds

greeny1967

We recently took out a secured loan with Lloyds Bank on an advertised 11percent interest. We came home after signing the agreement with the knowlege of a repayment by dd for 463.95 on a 25k loan over 5 years. We have just had our first repayment taken for the 463.95 but have also had a second payment of 77 pounds taken as interest. This was not verbally put to us and the only ampunt clearly shown was the 463.95.. this is stealth any advice or experiences here

[Deleted User]

Simply ask them for an explanation.


Or check the agreement.

TonyMMM

It is probably for part of a month ..... reflecting the date you took out the loan. The other amount being your first full months payment.

Ring them to clarify.

Gaz83

greeny1967 wrote: »

We recently took out a secured loan with Lloyds Bank on an advertised 11percent interest. We came home after signing the agreement with the knowlege of a repayment by dd for 463.95 on a 25k loan over 5 years. We have just had our first repayment taken for the 463.95 but have also had a second payment of 77 pounds taken as interest. This was not verbally put to us and the only ampunt clearly shown was the 463.95.. this is stealth any advice or experiences here

It's most likely to reflect part of a month, but phone them to double check.

Nearlyold

£77 represents about 10 days interest on the full amount of your borrowing and is almost certainly to cover the fact that the chosen date for your first regular payment was about 40 days after the loan money was in your account - all perfectly normal, this happens all the time with mortgages etc. and will be fully detailed in your loan agreement.