Secured loan admin fees

Jodiieleanneex

Hi
Please can some one shed some like.
I have a loan with evolution money which was 5k go start with.
I am settling this off with a loan from tsb to put all my debts In one place up on getting a settlement they have given me the below in rough figures
£4700 left
132 ( 2 months arears for settling early)
700 fees (originally £900 at the start but these were added to the loan amount)
All this together is £5600
So I have paid this loan for a year and ending up paying back more because of fees
In the contract under ‘early repayment’ just states they require 2 months interest, nothing to do with the fees outstanding. Also in another document states ‘upon early repayment you may be owed a rebate on these fees’
Given I have paid some of the fees do I have to pay the remaining £700?
Please help

Gaz83

What was the interest rate and monthly repayment? And what does it say about the fees in the contract (not necessarily under the early repayment section)?

Jodiieleanneex

It does say in the contract fees of £900
But that was incorporated in the loan, I have paid so much off the £900 they want the remainder but in another section says they may be able to put a rebate on it if paid early in full early?
27.02 % and £124 a month

Gaz83

Okay, so you borrowed £5,000 with a £900 fee at an APR of 27.02%? And you're paying £124 a month? So you effectively borrowed £5,900?

Jodiieleanneex

That’s right. I borrowed £5000 and they asked do I want to pay the fees In full or on top of my loan.
Yes, 27.02% and £124 for a year

BrassicWoman

aren't the fees for the legal work to do with securing the loan? as opposed to "regular" unsecured loan fees. Like, it's actually a lawyer's bill?

Jodiieleanneex

No, 400 is admin fees and 500 is commissions to norton finance who introduced to evolution money

Gaz83

There's something up with those figures, then. A monthly payment of £124 won't even cover the interest on a £5,900 loan, let alone the capital. Your interest for the first month alone would have been £132.84.

Jodiieleanneex

In my settlement letter I have
Principle & fees : £5436.92
Interest for Upto 5/1 : 32.74
Early repayment charge of £132.63

At 27.02% - £124 a month and I’ve paid it for a year
Hope this helps

Gaz83

If your APR is 27.02%, then this means that per month it's 2.251% interest.

If your initial loan was £5,436.92, then interest for the first month would have been £122.42. You're barely making a dent in the loan at all if you're paying back £124 a month. After twelve months your loan balance would have still been £5413.38. You've paid £1,488 and the loan has reduced by £23.54. Those figures don't sound right at all.

Have you tried asking them?

Jodiieleanneex

Yeah I’ve called them to ask why there’s a total of £5600+ to settle and they said my actual loan settlement is £4700 (not sure of the exact) but they want the remainder of the 900 fees making my settlement £5400 .
Because I put the £900 on top of the loan that had interest on it too

Maybe the settle letter could be wrong? Is there any way of me to send you my loan contract to see if you can make ends meet with it ?