Natwest Fixed Sum Loan agreement wrong?

[radiohead09]

Hi Guys - I took out a 10,000 loan with Natwest in March 09.

 

The loan agreement states:

 

Monthly Repayments 282.58

Total Amount Payable: 13,563.84

Length of Loan 48 months

 

Total interest = 3,563.84

 

One thing which is confusing me is on the Key financial information it states APR 17.0% - on the other financial information it states "interest at 15.80% per annum.

 

So far i've made 16 payments each at £281.62 a month (total 4505.92)

 

The thing that is worrying me is that the intest varies each month. In total ive paid 1813.22 in interst over 16 months (they vary between -93 to -137!)

 

So in 16 months i've paid 1813.22 interest. Considering there is another 32 instalments which will take the calcualted loan agreement way over the 3,563.84 it states.

 

I worked it out that the rate the loan is reducing it will take way over 48months to pay off.

 

If my calculations are correct the personal loan agreement is wrong. so my question is: where do I stand with this legally? the agreement I signed is not what they have applied to the account?

 

Any suggestions or advice is very welcome. I will be going in to see Natwest when I can.

[postggj]

interesting

 

running the figures at 17% i make it

 

monthly repayment £282.40

interest £3555.09

total repayable £13555.09

 

now do you have any acceptance fee etc on the agreement

[radiohead09]

interesting

 

running the figures at 17% i make it

 

monthly repayment £282.40

interest £3555.09

total repayable £13555.09

 

now do you have any acceptance fee etc on the agreement

 

Not that im aware of and it does not state anything like that on the agreement.

[postggj]

can you scan the agreement and post it onto your thread

 

google photobucket

 

deleate personal details but leave in the figures

[radiohead09]

I dont have a scanner put I can type it up if you like?

[postggj]

Its Not So Much The Figures But The Way The Agreement Is Laid Out

 

Can You Go To The Public Library Or Internet Caffe And Download To A Flash Drive

[radiohead09]

CUSTOMER COPY OF PERSONAL LOAN AGREEMENT - CUSTOMER TO KEEP THIS COPY

 

Fixed - Sum loan Agreement regulated by the Consumer Credit Act 1974

 

Parties to Agreement

(us) - National Westminster Bank PLC - Address

(you) - My Details

 

1. Key Financial information APR 17.0%.

Loan Amount: Cash loan of £10,000 for personal expenditure.

Monthly Repayments: £252.28

Total Amount Payable: £13,563.84

Length (term) of the loan: 48months

 

48 repayments due at monthly intervals, starting one month from the date the loan is drawn, but where you elected at the time of application to nominate a date in the month as your preferred repayment date we will normally comply with that request or offer you another choice. If the repayment date changed, the Month Repayments may require adjusting to ensure the Loan and interest is repaid within termm. Any adjustment will be notified in writing.

 

2. OTHER FINANCIAL INFORMATION

Total Charges of interest: £3,563.84

 

Interest is at 18.50% per annum, calculated of the daily balance of the loan outstanding and debited in arrears to the Loan account (a) on the last day of buisiness of each month (or on such other dates as we may advise from time to time) and (b) on final repaymentof the Loan.

 

3. KEY INFORMATION

A You can repay the loan early by making a single payment. the following examples illustrate hom much you would pay to settle your loan early after:

1/4 of the term has passed £8,537.10

1/2 of the term has passed £5922.94

3-4 of the term has passed £3194.77

 

These early settlement amounts are only illustrative and assume that all monthly repayments due are paid on time an no default interest or charges are incurred. They do not take account of any future changes under the agreement.

 

B Charges on Default

You may be charged on default

£30 when a default notice is issued and £30 each time a payment due under this agreement is not made on time.

out other reasonable expenses when enforcing this agreement which may include expenses that we incur after as well as before any judgement or decree, including the cost of finding you if you do not tell us your new address.

the rate of interest on any sum payable to us under the agreement from its due date to the date of the actual payment, both before and after any judgement or decree.

 

Missing Payments - Missing payments could have sever consequenses and make obtaining credit difficult.

 

it then explains my rights/right to cancel and

 

4. By signing this agreement you confirm (1) having recieved seperate from the agerement the Pre-contract information (2) acceptance of (a) the conditions set put above and the personal loann addtional conditions set out seperatly all of which form the credit agreement and (b) the data protection information, (3) having recieved a copy of this agreement, (4) all the information provided in connection with you application for the loan is true and accurate, and (5) we may make any enquired we deem necssary to confrim the accuracy of the information provided and the purpose of the credit agreement.

 

 

So thats what it says.... sorry if there are typo's/speeling mistakes

[radiohead09]

I can get it scanned when I get to work tomorrow if needed

[postggj]

Thanks