HP car finance settlement figure higher than amount borrowed after 12 months of payments

Bside123

Hi. This seems like I have had the interest from loaded onto my hp agreement. I thought this was illegal in the uk now.  After paying off 12 months in payments I asked for a settlement and the settlement figure I have been given is higher than the amount I borrowed from the finance company.  Any advice greatly appreciated. 

Bside123

Hi. This seems like I have had the interest front loaded onto my hp agreement. I thought this was illegal in the uk now.  After paying off 12 months in payments I asked for a settlement and the settlement figure I have been given is higher than the amount I borrowed from the finance company.  Any advice greatly appreciated. 

Nebulous2

This probably isn't the best place for your post. You could ask for it to be moved to the loans board. 

Front-loading is illegal and that wont have happened. 

It is certainly possible to be due more than the original amount, with a high interest loan you will mainly be paying interest in the initial period, and they will be allowed to claim 56 days interest as a early payment charge. 

If you give more information someone will tease it out for you. Type of loan, AER, amount borrowed, monthly payments, how many payments made, whether they were all on time, settlement figure and original term.