Guest gzaerojon Posted August 2, 2007 Share Posted August 2, 2007 i took a loan out with my bank 2 months ago for £4500 over 3 years, my monthly payments are £200. i've decided i want to pay the whole lot early so i phoned them to get a settlement figure and they told me it's £4700 they told me the interest is added on at the start (which is fair enough if i was paying it over the full term) but i've only had the loan 2 months and paid £400 off it. i also phoned HFC who we pay our tv through and asked them for a settlement figure..... £1995.45 they say, the original amount we borrowed was £2100 and we've been paying £80 per month off that over the last year. i asked why and it was the same thing, we have to pay all of the interest over the whole term even if we pay early. so we've paid over £900 and only put a £100 dent in the amount anyone else had this? is there anything we can do about it? i just can't believe we can be robbed like this Quote Link to comment Share on other sites More sharing options...
Pot Posted August 2, 2007 Share Posted August 2, 2007 I had the same once with a loan in the past, seems it's common practice really... Quote Link to comment Share on other sites More sharing options...
Whitesupraboy2 Posted August 2, 2007 Share Posted August 2, 2007 I asked barclays when I took out my load how much it would be for an early repayment and they told me one months interest only reason I went with them Quote Link to comment Share on other sites More sharing options...
DaveK Posted August 2, 2007 Share Posted August 2, 2007 I think the last loan I had was about 10 years ago, but I'm sure it didn't work that way. I paid it off early and I'm sure I paid less interest (think it was with co-op). Maybe they all rip you off like that these days, and the banks have changed it just to get even more money. Or maybe you've just been unlucky, in which case I guess it's all in the fine print. Quote Link to comment Share on other sites More sharing options...
2JG Posted August 2, 2007 Share Posted August 2, 2007 sorry to hear jon unfortunately this is common practice with most places. hsbc and bank of scotland are exceptionally bad though imo. Quote Link to comment Share on other sites More sharing options...
RobSheffield Posted August 2, 2007 Share Posted August 2, 2007 Far too many finance agreements use front loaded insurance Quote Link to comment Share on other sites More sharing options...
Konrad Posted August 2, 2007 Share Posted August 2, 2007 They cannot charge you for full term interest, unless it was in terms and conditions. I took loan from HSBC, small one (1500 pounds) for 1 year. Interest rate was 12%, but if I will pay all regulary and will not pay it early, they giving me back 1/4 of interest amount back. It's not anything crazy, but still... 2 rates left. Btw. why paying early, if they charge you full term anyway? Just put all necessary money onto account and set direct debit. Quote Link to comment Share on other sites More sharing options...
2JG Posted August 2, 2007 Share Posted August 2, 2007 just had a chat with someone about this, what you're paying back every month is a mixture of the interest and amount borrowed. your hsbc settlement figure is higher than the loan you started out with because they add on an early settlement premium and fee on top of what is outstanding. same will apply to your hfc loan. Quote Link to comment Share on other sites More sharing options...
Guest gzaerojon Posted August 2, 2007 Share Posted August 2, 2007 just had a chat with someone about this, what you're paying back every month is a mixture of the interest and amount borrowed. your hsbc settlement figure is higher than the loan you started out with because they add on an early settlement premium and fee on top of what is outstanding. same will apply to your hfc loan. it's just wrong how on earth can they expect me to pay 3 years of interest on something i've not have for 3 years? i'm paying cash for everything now Quote Link to comment Share on other sites More sharing options...
2JG Posted August 2, 2007 Share Posted August 2, 2007 it's just wrong how on earth can they expect me to pay 3 years of interest on something i've not have for 3 years? i'm paying cash for everything now i know the feeling buddy, we get screwed at every turn the saying "born free, taxed to death" springs to mind Quote Link to comment Share on other sites More sharing options...
snake Posted August 2, 2007 Share Posted August 2, 2007 They take the money quick but pay out slow. i took out an accident policy so my morgage would get paid. i have been off work since april AND so far Nat West have only paid 2 months.The last payment was a month late.They lost the last sick note which was for two months,i have now sent them all again recorded delivery. why is there always a problem when they owe you.:aggress: Quote Link to comment Share on other sites More sharing options...
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