[josemdsg]

Hi,


I took out a loan of £7,500 with an APR of 14.5845%. I received the funds on November 13th, and the agreement states my payments will be 12 installments of £691.98 each, starting February 1st and ending January 1st, for a total repayment of £8,303.76.

At this point, I feel I’m being overcharged, as the only way this calculation makes sense is if I had received the funds on November 1st, not November 13th.

Additionally, I made an extra payment of £780 on December 7th, yet I was informed that the rebate amount is only £68.03. How is that possible? That’s less than 10%. I’ve paid more than the final payment, over a year in advance, yet the savings don’t come close to reflecting the APR of 14.5845%.

Could anyone please explain how these figures are calculated?

[ChristopherP]

@josemdsg Hey there, thanks for getting in touch!

When you make an overpayment it goes towards reducing the length of time you are borrowing for (unless you’ve asked us otherwise). This means there’s less interest to be charged, which means you could save money overall.

The amount you could save is unique to your loan and will vary depending on how many payments you have left. If you call the Loans team, they'll be able to take a closer look at this for you.

You can reach them on 0345 600 6016, available Monday to Friday 8am-6pm, Saturday and Sunday 9am-2pm, and they'll be happy to help.