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Contractual Interest?


Bubsmum
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A company called Oakham have been in touch regarding a loan i took out several years ago,

although i thought it had been paid they claim i still owe them a small amount of money.

 

I asked them for a statement which seems to say they are correct.

 

The issue i have is the large amount of interest charged each month,

they call it 'Contractual Interest'

and i am wondering if this is the same as PPI?

Would be grateful for any help on this.

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Can you give more info on the background of the debt please. Also, stay off the phone.

 

Contractual interest is interest that is put on the account as agreed by the terms of your contract. It isnt PPI.

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Thread moved to General Debt Issues Forum......please continue to post here to your thread.

 

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Contractual interest is not PPI im afraid... Its the interest which is applied in contract

IE PDL @ 6000% Interest APR...

 

How much was the loan for?

 

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Many thanks for clarifying that. The loan was for £250 which at the time i was desperate for, when i now look at the statement it appears that i paid £65 a month and they took between £21-£29 Contractual Interest!

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at these usurious interest rates even small errors add up to a lot of compount interest so knowing exactry what the terms were and how the interest was calcuated (daily rate?) would be helpful in challenging this. Also, if the loan has been defaulted then they cant claim interest on the debt after the default as that effectivy severs the contract

So, when was last payemnt and how much do they say was due at that time after you last payment? I bet that you owe pennies at most and the rest is unenforceable add ons

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