Confused on Interest, please help :(

[redmanmark86]

Hi there,

 

i have a credit agreement and im trying to work out how they came to me paying them 53.72 a month and how they got to the interest they did but all of it goes over my head... so if i give the figures hopefully you guys can help me work or would it be easier to post the agreement itself?

 

Also if the amount im paying back doesnt add up does it void the agreement?

 

anyway here is what i have...

 

Amount of Credit 1247.00

48 Monthly repayments each of 53.72

first repayment due 12 months after advance date.

 

Total amount payable 2978.56

APR 29.8%

 

then in a seperate called other fincial information i have this...

 

Computer Equipment

with a cash price of 1647.00

advance payment payable by you 400.00

Total Charge for credit 1331.56

made up of interest 1331.56

 

but no matter what i do the online APR calculators dont give them same

[cosalt]

Hi, would probably be best if you can scan and post up the agreement ( remove all personal info but leave figures in )

 

We can then take a look and tell you if the figure are correct and the agreement enforcable.

 

If you need any help just ask !

 

Cosalt

[redmanmark86]

Hi there, any help would be greatly appreciated... Here is the agreement itself that they sent me

 

 

However they dont have the original terms and conditions that go with it.

 

if you times 53.72 by 48 and add my 400 deposit you get the figure they are qouting which means they worked out the interest on 1647 i think when it should of been the 1247 like it says but i cant make the 1647 come to their figure either

[cosalt]

I have had a look and it appears correct, the amount of credit plus the quoted interest divided by 48 = £53.72.

 

However I can't work out the APR because of the deffered start, I had this problem when checking one of my agreements, dualcalc does not appear to cater for it.

 

The apr being wrong is I believe your only hope as all other prescribed terms are correct, hopefully someone else may be able to calculate it to check.

 

Cosalt

[redmanmark86]

Hi Cosalt, i have downloaded dualcal but it went right over my head :S

 

anyway i just spoke to BPF who own Clysdale now and the guy one the phone told me that the interest is charged from the end of the advanced date over 4 years and not from the beginning over 5 years...

 

i then asked him to work it out, he went silent for a little while and said he was going to refer on to custoemr services as he couldnt get it to add up, i then told him what the FSA calculator got, he got angry at me and hung up

[cosalt]

I would bet on it he is wrong, I have had a few agreements like this in the past whereby you have a 12 month interest free option. If you pay before the 12 months they charge you no interest but even one day over and you will pay interest back dated to the start.

 

You need someone to check the apr based on the 12 months deffered but I can't do it on dualcalc.

 

Hopefully these posts will bump it up so someone can take a look.

[redmanmark86]

well i don't know if this helps, but if i didnt pay anything for a year on the 1247 with their set interest rate it would go up to 1618.61

 

could you then use dualcalc to work out the monthly repayments from that figure?

 

trying to still get my head round dualcalc but its too confusing...

[cosalt]

Based on that yes the figures are correct, however there is still no way of working out the APR without taking account of the first year.