Loan Settlement Help

Champnos

Gday,

Heres breif detail of what has occured. I had a very high interest rate loan, i have spent 2 years improving my record so that it is good enough for a real loan. Last month i decided it was time and got myself a loan to cover all my debts including this high rate loan. My problem lies when asking for a settlement figure, i asked for it twice it never arrived so i called and would not put phone down until it was sent, in the meantime i got a loan anyway using what showed on my credit record plus a few hundred for interest, usually about 2 months interest payable when paying early?

Anyhow, i received settlement quote for lets say £4600.00, it said settlement to be paid before or on 28th May 2008. The quote is terrible but thats life with high interest loans. Anyhow that was recived on 2nd April, so i thought "nice" i dont have to pay it for about two months. So i cancelled their Direct Debit and put the cash in a savings temporarily. So today to my shock horror i received a letter saying they tried to take the DD but it failed, which of course it did i cancelled it!

If i was to pay my next two payments before the date they set for my settlement i would be paying more than i actually borrowed, this is madness. As its bank holiday weekend i doubt i will get a hold of them until next week, can anyone confirm if i am right or they are? Do they really expect me to settle the same amount and also make two more full payments?

Any advise appreciated, im just hoping they messed up. Surely they should have sent me a figure to pay for the date i requested not some 2 months ahead!

Thanks
Karl

jonesMUFCforever

Sorry you are wrong. It is never right to cancel a D/D in anticipation of a loan settlement.
The figure you were given would have taken into account any payments in April and May. Any overpayments would have been refunded to you.

All you seem to have done here is to damage your credit files again by having 2 late payment markers on it.

Champnos

Thats life i guess. I would have assumed it would have mentioned that when they wrote to me with the settlement figure. Anyhow i will only have 1 marker againt me as Mays is not due yet.

What they are really saying then is after a year or so of paying off huge amounts i still have to pay back more than what i borrowed. A warning for anyone trying to get a loan with a bad credit record i guess.

I shall talk to them and settle up will update when done.

CLAPTON

I'm surprised you are paying more than you borrowed
did you take out PPI or have any payment free months?

Champnos

Ok,

Spoke to them, quote still valid, cancelling DD didnt change much, i also persuaded them not to issue a late payment as i was paying them all in full now. So ive paid the settlement figure which is less than i borrowed because i do not have to make anymore payments.

Alls well that ends well.