Ridiculous Loan Charges

2»

Comments

  • C.M.
    C.M. Posts: 79 Forumite
    Hence the first sentence of the advice given....
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Name Dropper Photogenic First Anniversary First Post
    Kenpachi wrote: »
    Whilst I understand that I did not cancel the loan within 14 days, is there any way I can dispute this ridiculous amount?

    The lender has overhead costs etc to cover in processing your application.
  • Kenpachi
    Kenpachi Posts: 12 Forumite
    Thank you all for the constructive advice.

    Whilst I do not disagree to £100/£200, however, £500 for a months worth of interest is excessive. It is not even a month, as they state the first 14 days is without that fee.

    I have had every intention to continue the loan for the full duration however another financially viable product came into play, whilst I know that everyone understands this.

    Thank you all again for your advice.
  • minimike2
    minimike2 Posts: 2,210 Forumite
    Name Dropper First Post First Anniversary
    It is a months interest, plus the additional interest charge for early repayment. You don't get 14 days interest free. Ever. The interest is applicable from day one. However the lender is required to give you a 14 day cooling off period, so if you change your mind during this time you will not incur the cost of the borrowing over that period.

    It really is simple. You knew the terms of the loan when you took it out so there is little point in whining about it now.
  • Nearlyold
    Nearlyold Posts: 2,288 Forumite
    First Anniversary Name Dropper Combo Breaker First Post
    minimike2 wrote: »
    It is a months interest, plus the additional interest charge for early repayment. You don't get 14 days interest free. Ever. The interest is applicable from day one. However the lender is required to give you a 14 day cooling off period, so if you change your mind during this time you will not incur the cost of the borrowing over that period.

    It really is simple. You knew the terms of the loan when you took it out so there is little point in whining about it now.

    Not quite sure what you are saying, however you still pay interest for the period the loan was in force if you exercise your right to withdraw during the 14 day cooling off period
  • minimike2
    minimike2 Posts: 2,210 Forumite
    Name Dropper First Post First Anniversary
    Nearlyold wrote: »
    Not quite sure what you are saying, however you still pay interest for the period the loan was in force if you exercise your right to withdraw during the 14 day cooling off period

    I mean that the OP would not have had the charge of the additional 2 months interest if he had withdrawn in the 14 day period - Loan interest is applicable from day 1. OP was suggesting that the first 14 days was interest free.
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    First Anniversary Name Dropper First Post
    edited 20 August 2018 at 10:32AM
    £13,500 x 15.9% /12 = £178.88 is one month's loan interest amount (approximately depending on the number of days in the month).

    Have you made the first payment yet - if you have how much was is for?

    Natwest should charge you the first month's interest as normal (normally higher depending on the day you received the money and the first payment date) plus 2 additional months interest due to you wanting to settle early, 30 days from taking out the loan, are you incorrectly including the first month's interest in your calculations?

    My Natwest loan interest amounts vary quite a bit - also be sure that you have the new loan offer in writing first, assuming you declared that you have a £13.5K loan already and the purpose of this new loan is to clear the first loan.

    It doesnt sound like Natwest are over charging, more like OP has now realised that 15.9% interest is a high rate for this amount of debt.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards