Provident settlement figure more than original loan - surely not?!

[sunsh1ne]

Hi I wonder if anyone could clear up something for me.

 

I, as a last resort, took out a provident loan a few wks ago of £300. I have no intention of going full term and paying all the interest and requested an early settlement figure which they quoted me today of £309. Is this right?? I worked it out to be about £280ish - i dont understand how the settlement figure can be MORE than the original loan???

 

Here are the details of the loan -

 

Loan = £300

APR = 272.2%

duration = 51 wks

repayment amount = £10.50

Total repayable = £546

 

I have made four payments so far. I thought that the repayment amount would be split into APR and loan something along the lines of £4.82 APR and £5.68 Loan per week - which would mean I would have paid off about £22 so far. Am I just completely wrong?

 

Thanks in advance

[sillygirl1]

Yes unfortunately Provident calcualte their loans in a strange way, I would write again and ask for an early settlement figure and copy in the local Trading Standards... you won't really get much off the loan as they try to confuse you with 'terms and conditions etc etc...'

[The GodMother]

make them a offer of the amount of loan they gave you minus the amount you have paid them.

[sunsh1ne]

make them a offer of the amount of loan they gave you minus the amount you have paid them.

 

Hi godmother thanks for the reply,

 

Do you know if that would work? Have you done that or know anyone who has? I know its only £9 but its just the principle of the matter more than anything else - even if the quote was £299!! When i questioned the rep she just said its because of the interest and became quite defensive when i asked wasnt that what paying it off did - cut the interest off? Im not sure she knows how it is worked out herself tbh she couldnt explain it just tell me that "thats just the way it works out" - not an explanation in my eyes.

 

I also wonder if the fact that she comes round on a mon instead of the fri when it is due would make a difference seeing as it would make me look like i was late by a couple of days and pull the outstanding amount into an extra wk?

[The GodMother]

I made them a offer like that b4 and as result they took it. Ok it was not much money, it turned out l was going to be paying them £30, but they still took it.

[sunsh1ne]

Ok, excellent. Its good to know that they have accepted this in the past. Il make them a reasonable offer and see what happens.

 

Thanks

[The GodMother]

You have to remember it might not work as well for you and DO NOT offer more than you can afford. you have to remember l made them a low offer as thats all l truly owed and minus there fees rate.

[IdaInFife]

how many days from the date of loan until you asked for a settlement figure?

[sunsh1ne]

Thanks, by a reasonable amount i was thinking along the lines of £280 - £285 - i have a tax rebate on its way

[sunsh1ne]

how many days from the date of loan until you asked for a settlement figure?

 

Eeerrmmm ... about 35 days, give or take a day. Why?

[The GodMother]

that will by why then as they calculate it based on the amount of days you have had the loan. Wait a bit longer and try and keep hold of the money

[IdaInFife]

if it was 28 days . you wouldn't have paid any interest at all

 

who did you ask your agent or the office?

[kardashian1]

you took out £300 and they have charged you a whopping £246 interest, so your total is £546.

 

do you know that you can get ALL your loans/debts wiped out in 12months by only paying £90 and making an application for a debt relief order, after 12 months ALL your loans inc your provident will be wiped out. When making the application for the debt relief order make sure you are paying under £50 a month to provident in your repayments or provident can use that to file an objection with the insolvency service............

 

right.......... now you have filled in your debt relief order and sent the £90 to the insolvency service, now just sit back and wait 12 months without paying any of your debts to any of your creditors, after the 12 months have expired..........ALL YOUR DEBTS will be wiped away, simple as that

 

your better offer paying £90 for a debt relief order and saving yourself well over £400 in the process