Loan Settlement help.

Surfer2008 · 19 July 2018 at 6:47AM

Hi I would like like some advice please. I am in a position where I can refinance a loan and get a much lower rate as my credit rating has greatly improved in the last year.

I took out a loan with 1st stop this time last year.
Loan amount £3500
Payments made: 12
Payment amount: £91.94
Total amount payable £5516.40
Apr 23.05%
Rate of interest 11.52%

I would like to pay off this loan in full. I called for a settlent figure today and the quotes me £3170. Now...having paid over £1100 already I was surprised to hear the figure was so high to settle and only £330 less than I borrowed 12 months ago. That is a pretty huge chunk of money.

My question is: the wording below doesn't mention upon me signing that I was penalised or there will be a penalty for me to settle early so do I have a case to complain this is unfair and unreasonable.

'Early Repayment: You are entitled at any time, by giving written or oral notice to the Creditor and making
payment to them by an agreed method to discharge your indebtedness under this Agreement in full or in
part. You may be eligible for a rebate under the Consumer Credit Act 1974.
Ombudsman Scheme: You have the right to complain to the Financial Ombudsman Service's

I'm not looking for judgment or to be lectures. I had a gambling issue over a year ago and got myself in a pickle with payday loans and this loan at the time helped out. I no lo her have gambling issue and have my life well on track and I'm trying to do the same with my finances.

Thanks for your time and help.

[Deleted User] · 19 July 2018 at 6:56AM

That all seems fine. You may be charged two months interest for early settlement but it will save you a fortune.

Nearlyold · 19 July 2018 at 8:01AM

As zx81's post above, the settlement figure looks more or less spot on to what you would expect. So you have no case to complain as it's neither unfair nor unreasonable.

Don't forget that the interest is not spread evenly throughout the loan. At the start of the loan you owe more, so naturally the interest charged per month is higher at the beginning of the loan than at the end.

You may be eligible for a rebate under the Consumer Credit Act 1974

The sentence above in your post from the loan terms and conditions tells you on what basis the interest rebate will be calculated - the prescribed basis allows for an additional two month interest charge. (In calculating the interest rebate the lender is permitted to post date the assumed date for early settlement up to 2 months from the actual settlement/request date)

foxy-stoat · 19 July 2018 at 8:53AM

£3500.00 * 23.05% / 12 = £67.23 month 1 interest less monthly payment of £91.94 = £3475.29
£3475.29 * 23.05% / 12 = £66.75 month 2 interest less monthly payment of £91.94 = £3450.01
and so on

Quoting that you have already paid £1100 is irrelevant as 2 thirds of that would be been interest.

Well done in getting a cheaper rate loan.

Surfer2008 · 19 July 2018 at 7:31PM

Thanks for your advice. One last thing before I bite the bullet and pay the settlement amount.

Is there any weight at all behind me making a complaint of unaffordable lending. I had 1 or 2 payday loans active at the time the loan was given to me and there was clearly a gambling issue visible to them from the bank statements I sent them.

I take responsibility for my actions however clouded by the gambling I was BUT I feel like there is a shared responsibility to this.

Would this sort of thing be given in my favour with the ombudsmen?

I have made 2 claims against Wonga and Safe loans and won. They took responsibility for lending to me in the state I was.

Again please. No judgement. I am trying to wriggle out of it if I can/have a case against this type of irresponsible lending.

Nearlyold · 19 July 2018 at 7:55PM

Is there any weight at all behind me making a complaint of unaffordable lending. I had 1 or 2 payday loans active at the time the loan was given to me and there was clearly a gambling issue visible to them from the bank statements I sent them.

If you have made all the payments required it what way was it unaffordable? The interest rate was highish on the personal loan but absolutely nowhere near the Payday lenders ridiculous rates. I would have said the personal loan actually helped you stabilise your finances from what you tell us, you've asked for no judgement so I'll leave it there, but others may be harsher in judging you if you are seriously contemplating claiming the loan was irresponsible.

[Deleted User] · 19 July 2018 at 8:43PM

Surfer2008 wrote: »

Again please. No judgement. I am trying to wriggle out of it if I can/have a case against this type of irresponsible lending.

Could you stop with the no judgement requests. People are trying to help and it gets a bit wearing.

There's no evidence from what you've said that it was irresponsible, but just an informed choice on your part.

Surfer2008 · 19 July 2018 at 8:53PM

It's very easy to offer advice and help impartially and you can still be honest without being judgmental so if I am wearing on you or you are incapable of replying with something helpful don't bother replying.

Nearlyold I appreciate your advice. I think you are right it did in a way stabilize my finances as the payday loans were out of control. It just gives me a little hope that they main entertain it if I have won 2 cases already. If it hadn't been irresponsible Wonga and Safeloans wouldn't have conceded.

[Deleted User] · 19 July 2018 at 9:02PM

Surfer2008 wrote: »

It's very easy to offer advice and help impartially and you can still be honest without being judgmental

Which is precisely what posters have done and why the repeated reprimand isn't required.

Please stop judging posters before they reply, just as you keep asking not to be judged.

Surfer2008 · 19 July 2018 at 9:19PM

Posters have done that.

It's just far easy to ask for no judgment before you get it. Inevitably there are people who don't really want to help.....like you. And would rather pull someone up on something completely irrelevant.

I would suggest it offends you because that's ALL you want to do. Probably more fun to spend your time berating people online than living your actually life.

[Deleted User] · 19 July 2018 at 9:23PM

Surfer2008 wrote: »

Posters have done that.

Precisely my point.

Surfer2008 wrote: »

I would suggest it offends you because that's ALL you want to do.

Could you point out where I have done that?

Loan Settlement help.

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