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Can Loan - Early Settlement Figure

Lokolo
Lokolo Posts: 20,861 Forumite
Part of the Furniture 10,000 Posts
Hi all,

My brother being young and naive purchased a vehicle on finance. He is now trying to sort out his finances for a mortgage and so I have started looking at getting this loan paid back early as its a lot of his income.

The finance company have come back stating
Total Amount Outstanding: £1,869.59
Less rebate for early settlement: £1,864.28
Net amount to pay £3,733.87

He currently pays £197 and only has until November.

The part I don't understand is the "Less rebate for early settlement" which has been added onto the final amount.

Can someone explain what is going on here?

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