Advantage Finance - Car Loan Settlement Issue

sizero

I have a loan with Advantage Finance, my settlement was slowly going down and in march it was £6.3k, and I was getting close to being out of negative Equity.
I took a covid19 payment holiday (3 months) as marketed on their website to the impression that it will not incur any charges and will not cost me any more money from how it was worded.

I have since made a few payments and checked for another settlement figure to find it has jumped to nearly £7.5k!!!!  Whenever I try and talk them about it they just say "well you haven't been charged, its just added on to the end of your loan.  I cannot explain any further but will get a manager to call back." (I never get the call back).

I get I need to repay the 3 months at the end, but I cannot understand how my settlement has increased so much leaving me realistically now chasing the devaluation of my car to near the end of the agreement before I can sell. 

I haven't missed any payments to date and am worried that due to change in circumstances I may be getting closer to the point of struggling to pay it.

I understand this was a high interest car loan, but it got me out of a pickle at the time.  But I now feel like I am dealing with a loan shark.

Before I make an official complaint, where do I stand with this, should this be allowed?

[Deleted User]

Yes.  It's the additional interest which has been incurred.

The settlement will be current balance plus two months interest.

You stand either continuing with monthly payments or settling. Settling will save you a fortune.

MallyGirl

you didn't get any charges during your payment holiday but the interest carried on racking up.

sizero

MallyGirl said:

you didn't get any charges during your payment holiday but the interest carried on racking up.

This is what I don’t understand, they tell me it’s not costing me any more money assuming I pay the current full term (with the three payments added at the end). But would I have case regarding this penalty not being made clear? 

Attached is clipped from the payment holiday q&a on the website

sizero

I mean it’s clipped from the COVID-19 payment holiday section on the website

[Deleted User]

You need to ask them to explain the settlement figure, if no further interest was to be added.  One of the figures is incorrect, but it may have been the first one.

MallyGirl

It could be what I'd call 'weasel words'. No 'Additional' interest will be added, just the normal interest you signed up to. It doesn't say that no interest will be charged during the holiday.

DCFC79

MallyGirl said:

It could be what I'd call 'weasel words'. No 'Additional' interest will be added, just the normal interest you signed up to. It doesn't say that no interest will be charged during the holiday.

Im inclined to agree OP, to me the clip you attached from the q&a says no additional interest will be added, no interest for say late payments.

But as mentioned ask them to explain the settlement figure. 

poppy10_2

MallyGirl said:

It could be what I'd call 'weasel words'. No 'Additional' interest will be added, just the normal interest you signed up to. It doesn't say that no interest will be charged during the holiday.

But even at 14% APR the normal interest for three months would be around £220. Not enough to make the settlement figure jump by 1.2k