Hi im not sure of the correct place to post this so sorry if its in the wrong place. Anyway, 2 years ago i took out a loan for a new kitchen for approx. £5600. I have paid £108 a month for the past 2 years and am up to date with all the payments, but have recently contacted the lenders for a settlement figure, which they say is almost £7000 (im not sure of the exact figures). I know they add interest but surely i cant owe them more than i originally borrowed?? I have already paid them over £2000 with the monthly repayments but i now owe them over £1000 more then the original amount!?

Anyway, my question is, does anyone know if there is anything i can do about this, or do i just have to pay them the amount they say i now owe?

Sounds very strange. Where did you buy it?

Have you checked the T&Cs?

You may find that they ommitted to inform you of the discount for early settlement.

I expect that your original agreement was for credit for a loger period - say, 6 years. At the end of 6 years you would have paid about £9000 for the kitchen. Although you want to repay early, they still want the total money which they expected to make from the credit deal - so you are liable to pay the full amount whether you repay as per the agreement or whether you repay early. Under their T&Cs you may even have been liable to repay the full amount even the day after getting the kitchen!!

There are lots of objections to this kind of contract - including legal.

I suggest that you go back to them and ask then isn't there a discount for early settlement.

A

Also, I have an idea that there may be a law which insists on discounts for early settlement but I can't remember what it is and I may not be correct.

Speak to them first and thenn come back here.

PM me with a lnk to this thread please.

This topic was closed on 03/08/19.

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