Settlement Figure Seems Wrong

maggiecon

Hi Just wondering if anyone knows anything abut early repayment of loans
 I borrowed £20k from M&S at 5.9% interest rate over 7 years. I have made 14 monthly payments of £292.50.
When I rang for an early settlement figure they quoted just over £18k. The loan has no early repayment charges in the T&C's and when I put the info through an amortization calculator it is coming out at closer to £17k. Does anyone know how I can double check the figure before I go back to M&S.

Thanks

jay1804

Are you sure for your loan there are no early repayment charges?
https://bank.marksandspencer.com/pdf/PLTermsAndConditions.pdf

kimwp

jay1804 said:

Are you sure for your loan there are no early repayment charges?
https://bank.marksandspencer.com/pdf/PLTermsAndConditions.pdf

Ooh, point 3, you mean?

MallyGirl

point 8 I would have thought

kimwp

MallyGirl said:

point 8 I would have thought

Oh, yes, I read the start of that point 8 as meaning that whole text only applied to part repayment and didn't read on. So there is a penalty of two months interest then.

kimwp

It's not my professional area, but using the same maths I used for my mortgage, allowing a full month of interest for the month you haven't yet paid the £292 for, plus two months of interest, I can't get the figure above £17,800. (Noting that the lowest figure is £17,664 though, which assumes you've literally just paid your 14th payment). Might be worth asking for an explanation of the calculation, though they usually have these things right.

maggiecon

Hi Folks, sorry to resurrect an old thread, but due to a delay in my remortgage I am only now in a position to settle this loan with M&S.

I rang today and asked for a settlement figure and it is £17148.25. I have paid £4972.50 over 17 monthly payments. This just seems wrong to me? I followed the advice above and asked the girl to explain the calculation and because I was speaking to what I believe is an international call centre she had no idea what I was asking for.

Would anyone know if there is someway to calculate this myself and also how do I escalate this? 

I sort of understand terms 3 and 8 in the contract but even with two months of interest the figure seems high.

[Deleted User]

It seems a little high, but in the right ballpark. I make it around £17k with two months early settlement.

Try using something like this.

https://www.theguardian.com/money/interactive/2013/oct/09/loan-repayment-calculator-overpaying-save-money

NewLeaf1986

How much time passed (in days) between the loan being paid out, and you making your first repayment?