Barclays Loan Interest question

secretdebt

Hi all,

Not sure if this is the correct place to post but seemed the most logical.

I have received a number of refunds from banks/credit cards for bank fees and interest charged when I had financial difficulties 4 or 5 years back. Literally all of the accounts that I defaulted refunded me something varying from £20 to £500 due to how they allegedly treated me. I’ve obviously been happy to take their money.

These have either been credit cards or overdrafts, so the charges they placed at the time related to the amount that I owed them at the time. Relatively straight forward to this point.

I also had a loan that I took out, which was then defaulted a few months later. I then repaid a set amount to clear the balance. The loan was originally for a period of 5 years, however I paid it off in 4 in the end.

My question is: as the interest is front loaded, would I be correct in thinking that I have theoretically been overcharged Interest for a period of 12 months? Obviously there is the point that it defaulted so the original contract doesn’t stand. I forget the exact details now, but i believe it was a loan for either £10k or £12k at an 18% rate. I ended up paying back the full loan + interest amount during my DMP.

I may add that whilst I am not complaining about repaying what is owed because I took the loan out at my own free will, overall I have repaid it over a quicker timescale.

Thanks
Matt

[Deleted User]

I doubt the interest was front-loaded.

It's been unlawful for the best part of a decade now.

antrobus

secretdebt wrote: »

...
I have received a number of refunds from banks/credit cards for bank fees and interest charged when I had financial difficulties 4 or 5 years back. Literally all of the accounts that I defaulted refunded me something varying from £20 to £500 due to how they allegedly treated me.

No, these would have been goodwill payments because you were in financial difficulties.

secretdebt wrote: »

My question is: as the interest is front loaded, would I be correct in thinking that I have theoretically been overcharged Interest for a period of 12 months?

No, you would be wrong.

secretdebt wrote: »

Obviously there is the point that it defaulted so the original contract doesn’t stand.

No, your default does not effect the validity of the contract.

-taff

When you say you paid a set amount back, does this mean it was in a DMP or similar? In which case you would not have paid the whole amount back.
PPI hasn't been widely sold since 2009.

[Deleted User]

-taff wrote: »

PPI hasn't been widely sold since 2009.

No mention of any PPI in the OP. Thread is about loan interest being allegedly front-loaded.