Advice Please

SteviePL

Hi All,

Unfortunately last year I got into a bit of a pickle and my only option to solve the problem was to take a logbook loan against my vehicle. Luckily I had a car worth a reasonable amount of money and was able to secure £5,000 funding against it.

The details were as follows on the fixed-sum loan agreement;

Amount of Credit £5,000

Total Amount Payable - £23,000.64

Interest - flat invariable rate of 120.00% per annum calculated in advance, added to the loan on the date of the agreement and repayable throughout the term.

APR listed as 345.65%

Weekly repayments of £147.44 for 156 weeks

Now, on a couple of occasions I have tried to get information regarding repaying this early but normally am met with no response. On the one occasion I did get an answer I then could not afford to go through with it.

I have, to date, repaid around £7200 (missed payments) - the loan started on the 26th April 2016.

I may be in a position to solve the problem in the next few weeks and have offered to pay £600 this week, followed by £600 next week and finally a sum of £4000 in October.

I cannot seem to work out whether or not I may then have overpaid and I am receiving no help calculating this from the company. Would anyone be able to work out if indeed I would, possibly be owed some money back.... I also cannot fathom out how the total amount payable was to be 23,000! - On all the calculators I can find I only ever get figures around 18k.

Thanks in advance.

SP

fwor

SteviePL wrote: »

Luckily

I guess that's debatable. Personally I would rather have Big Ron visit with his baseball bat than sign up to pay £18k in interest on a £5k loan, but that's water under the bridge now.

If you take the terms you describe literally then 120% of £5000 is £6000, which over 3 years is 3 * £6000 plus your original £5000 = £23000.

If we account for your "(missed payments)" it's probably not possible for anyone to say how much you owe now, without knowing how many payments were missed and what late payment penalties are included in the agreement you signed.

It also sounds as though the repayment terms are designed to make early repayment pointless (because you agreed for all of the interest to be added to the loan from day 1). Whether that type of loan would have been legal in April 2016 I don't know.

DCFC79

These logbook loans should be banned, that is horrendous apr and an amount to pay back.

SteviePL

Thanks,

I was told that we could repay early and not have to pay the full amount as initially it was supposed to be a one month fix. Reading the paperwork does make me wonder if it was mis-sold but then I signed it so guess I will just pay what they have agreed to and treat it as a lesson learned. I guess I questioned their legitimacy in part because they have agreed to my offer but then they've made 7.5k from me in 18 months.

Marktheshark

It is a secured lien loan, how much is the car worth ?
An easy option is let them take the security.

SteviePL

Secured against the vehicle. In real terms its priceless - wife, kids, work. Will have the money through working to meet the offer I made.

Gambler101

Wow I hope the loan was to buy the worlds 1st magic bean that works as described!!

dresdendave

SteviePL wrote: »

Secured against the vehicle. In real terms its priceless - wife, kids, work. Will have the money through working to meet the offer I made.

Your wife and kids may be priceless, but a tin box on wheels certainly isn't.

System

So you've missed payments, your credit is crap, you own a car the reality of which is you can't actually afford.

Let them take the car, use the £5200 you were going to pay them over the next few weeks to buy a cheap runaround for a couple of grand and pay off some of your other debts.