Loan payments

Max_Interest

I have a loan which I'm trying to pay off early by paying double weekly payments however I've noticed that the double payment are going against the full value of the loan, including the interest and is not dropping the interest amount. Is this correct ? Surely by paying double payments should reduce the amount of interest I'm paying on the loan as it's being paid off earlier.

[Deleted User]

Yes, it will.

Your term will finish earlier and you'll have paid less interest as a result.

Max_Interest

Hmmm just been looking at the paper work from the last finance agreement I had with these guys amd I did the same as I'm doing now, I paid double payments through out the agreement until it was paid off but I paid the full amount of the loan including all interest but just paid it off early. Bit out of order for that finance company to do that.

[Deleted User]

If it was before 2010, front loaded interest was allowed. Anything post that will always reduce the interest.

Max_Interest

Thanks for that info zx81 and yes the loan was started in 2016 and paid off in 2018. Now just need to found out what to say to them so they can look at giving me that interest back. Would you know is this falls under FCA regulations ?

[Deleted User]

Yes. Just ask them to confirm the amount you paid. You'll easily see if a mistake gas been made.

Max_Interest

Spoken to them and yes the interest was front loaded and I did pay the full amount off early, loan plus interest however it's not against any law to front load interest and have it paid off fully early including interest.

jonesMUFCforever

Max_Interest wrote: »

Spoken to them and yes the interest was front loaded and I did pay the full amount off early, loan plus interest however it's not against any law to front load interest and have it paid off fully early including interest.

Either they misunderstood what you were asking or they have lied to you, nobody has front loaded interest on personal loans for at least a decade.

glennstar

jonesMUFCforever wrote: »

Either they misunderstood what you were asking or they have lied to you, nobody has front loaded interest on personal loans for at least a decade.

Completely the case. I have to assume you are not asking the correct questions.

Also, and a complete tangent, why have you taken a second contract out with people that you think didn't correctly honour the first agreement? If I buy a dud takeaway from somewhere I certainly don't go back and try again.