Car personal loan settlement figure - rebate calculation based in March 2025

AA00112233

Hi all,

I am scratching my head with this one. I have a HP agreement with Santander consumer finance. I took a 5 year aggrement with them but can pay off the remaining amount after 6 months.

I requested the settlement figure but on it it says that the rebate calculation are based on a rebate date of 28 March 2025. I want to pay it off today ( Jan 29)  and when I checked the figure the company is taking in interest payments for feb and March 2025 into consideration. Is this right and is this approach common and legal? If I am paying off early why do I need to pay interest for 2 additional months?

Please let me know your feedback and please advise on what options I have. When I entered their website I was notified that thais company is being investigated by FCA for unfair practices. 

CliveOfIndia

Any lender is permitted to charge an early settlement fee of up to 2 months' worth of interest (or up to 1 month if there's less than a year left to run on the loan).  It's very common and perfectly legal.

molerat

All loan agreements will have a clause of 58 days interest for paying early and is allowed under the consumer credit act.  The calculation is actually set in statute law. https://www.legislation.gov.uk/uksi/2004/1483/schedules/made

They are not being investigated for unfair practices, the whole motor finance industry is under investigation for a particular type of finance agreement, the decision if anything was actually done wrongly is now in the hands of the courts.

Caz3121

It will all be covered in your paperwork

https://www.santanderconsumer.co.uk/wp-content/uploads/SCUK-Settlement-Figures.pdf

58 days from today is 28th March so all appears correct

AA00112233

Ok thank you all for your feedback 

Edi81

Can you repay all part from the last usual payment?