Creation Finance - partial settlement advice please

dldbsl

Hi
I changed cars on 6/6/2021 and financed the new car using Creation Finance.
I borrowed £10349 over 5 years with payments of £226pm starting 6/7/21.  Total due plus interest is £13585.80.

I had some money due to me so paid £3000 as a one off to against the 'principal' and transferred it on 15/6/21.  My intention was to clear the loan sooner than the 5yrs.  Anyway 
I informed Creation of this by email and a day or so received a call from them.  The guy who rang confirmed £3000 off £10349 reducing borrowed amount would be £7349.

2 monthly payments have since gone out to Creation as per DD.

I paid a further £1000 as a one-off on 13/8/21 with the intention of coming off the 'revised' principal.

I got a letter from Creation dated 16/8/21 with some figures on.  On checking / comparing their figures I dont feel they have pardon the pun - given me enough credit / rebate.
The bottom line is instead of taking my part payments off the principal (£10349) - they have taken it off the principal plus interest over 5yrs ie £13585.80.

I paid £3000 only a week after taking the loan (1st payment due 1 month after loan start date).  

Just wondering who is right before I get in touch with them.........

Kind regards in advance

[Deleted User]

What's the settlement figure and what was the APR?

dldbsl

Deleted_User said:

What's the settlement figure and what was the APR?

no interest rate shown on either of 2 letters I have received
no settlement figure as such - ive worked out a figure based on what due plus what ive paid £8398.80

dldbsl

   abfhyfvvbb

ItsComingRome

That isn't a settlement figure, hence the figures including all the interest due over the term of the loan.

If you want a settlement figure you'll need to ask for one.

dldbsl

ItsComingRome said:

That isn't a settlement figure, hence the figures including all the interest due over the term of the loan.

If you want a settlement figure you'll need to ask for one.

I wasnt intending to settle in full - it was a part settlement - i specifically told them it was to reduce the principal 

[Deleted User]

dldbsl said:

ItsComingRome said:

That isn't a settlement figure, hence the figures including all the interest due over the term of the loan.

If you want a settlement figure you'll need to ask for one.

 i specifically told them it was to reduce the principal 

And it has, as it cannot do anything else. 

But if you want to see what your current balance is, you need to ask for a settlement figure, not use figures which are based on it running full term.

dldbsl

Update -
phoned CAB today but unable to help stating that they did know what the terms of the loan were, suggested I get a copy of the terms from Creation and refer to the Financial Ombudsman if not satisfied with the response.

Phoned Creation this morning and discussed matter with a lady told me that it was their policy to deduct any part settlements from the total amount of the loan plus interest for the full term of the loan.  She was adamant that nobody could change this and said she would email a copy of their terms / conditions.  So far nothing received!

ItsComingRome

dldbsl said:

Update -
phoned CAB today but unable to help stating that they did know what the terms of the loan were, suggested I get a copy of the terms from Creation and refer to the Financial Ombudsman if not satisfied with the response.

Phoned Creation this morning and discussed matter with a lady told me that it was their policy to deduct any part settlements from the total amount of the loan plus interest for the full term of the loan.  She was adamant that nobody could change this and said she would email a copy of their terms / conditions.  So far nothing received!

I'm not sure why you're ignoring the correct advice you've been given. The statement you've been provided is perfectly fine and are simply the figures if the loan goes full term.  Most people will be happy with this as most peoples loans will go the full term.

If you want to see where you stand right now, request a settlement figure (although bear in mind the likelihood of two months interest being added on.)