Paying off an Anglian Windows Loan early

nikkig_3

My partner took out a loan over 10 years with Anglian Windows in June 2002, which he has been paying back at approx £85 per month. He has now received a letter from GE money increasing the interest rate so the repayment is over £90 per month.He has phoned to ask what the total settlement figure would be if he repaid early. He has been quoted a figure of over £3200 even though the original loan was for £4900. This figure seems ridiculously high! can anyone advise if this figure sounds to be correct? and what would be the best course of action to try to get it reduced?

QueenDebbie

It depends on the original agreement, really.

Has your partner still got the original credit agreement? If not, you should request one, and request a statement of the account so you can see exactly what has been paid. If they don't send you a copy of the agreement, there is a letter that you can send, along with payment of £1.00, which means they have to send it, or they can't do anything to enforce it till they do.

That should give you some idea, and if you're still not sure, get it looked over by a CAB or Trading Standards.

chambta

A quick mental sum of the payments tell me the interest rate is pretty high.
I would guess a flat rate of around 10%, maybe a touch higher. Having seen the agreements these companies used I would think it's a watertight, if poor value loan.

CLAPTON

Basically your OH borrowed 4,900 over 10 years at about APR of 17% and paying 85 per month.

After 5 years 4 month (64 payments ) your OH would owe about 3,300.

Sadly thats what happens if you borrow money at a high interest rate and choose to pay it over a very very long time.

nikkig_3

Thanks for all your answers. We have decided that as we are going to have to pay more or less the whole amount anyway, we might as well continue the full term.

CLAPTON

I dont understand your logic here

if you pay it off now it will cost you 3,300?

but if you continue you have you pay (120-64) = 56 lots of £90 which is 5,040 and who knows the interest rate might increase again

based on those figures pay it off now.