Warning about AA Loan Early Repayment

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in Loans
4 years ago I took out an AA Loan over 5 years (through this site). Recently I asked for a settlement quote as I had some spare money to pay off the loan early. I was surprised to get a settlement quote that didn't give any interest rebate for early repayment. When I contacted them about it I was informed that they load the interest at the beginning of the loan, therefore if you settle early and you have already paid off the interest up front, you'll never get any of it back. I made a formal complaint which they rejected. I thought that kind of thing was against The Consumer Credit (Early Settlement) Regulations 2004? By the way the AA Loan is still being pushed on this site.
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By settling early you'll save on future interest.
As zx81 says above, you won't have any future interest to pay.
If I were you with that spare money, I'd get the loan paid off. Your credit report will thank you for it. Interest rebate? I've never had one, nor did I know it was a thing.
Interest is not front loaded but you do pay mostly interest at the beginning as interest is calculated on the outstanding balance. You pay a fixed amount each month so gradually you pay more capital off the loan as the interest decreases (calculated on the shrinking balance).
Ignore the numbers in the picture but this is the pattern of how your payments work - this is not front loading interest.
By the end you are paying much less interest as the outstanding balance is so much lower - repaying early at this late point will only save you the smaller interest payment you would have made in the future.
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When you take a loan in the UK you agree to pay a fixed amount each month as that makes life simple but that means in the early stages of the loan you are paying off the interest and only a modest amount towards the debt. In later stages when you've paid the principle down significantly the reverse is true so each month you are only getting a small interest charge but as your payments are the same that means a large amount is going to paying off the debt. For example
£10,000 at 0.5% per month interest with repayments of £100 per month (yes a very long loan)
Month 1 - interest is £10,000 * 0.5% = £50 therefore your repayment of £100 is £50 towards the interest and £50 towards the debt
Fast forward a few years and the debt has been paid down to £500 so now interest is £500 * 0.5% = £2.50 and so your £100 repayment is £97.50 towards the debt
The interest rate stays constant as a percentage but interest in absolute terms is high when the debt is high and low when the debt has been paid down
The amount you save isn't returned to you as a rebate of any kind. It is realised by paying an overall lower amount than you would have otherwise paid had you just paid monthly for the entire 5-years.
The settlement figure I was provided with is exactly the monthly repayment x the months remaining. Therefore if I settled now, other than perhaps helping with my credit score, there is no advantage. I'd be better off putting that money in a savings account for a year.
I just think that settling the loan a year early I should at least have been given some kind of reduction in the overall amount paid back.
They've given you the wrong information, that's all