provident early settlement help please

[violentj]

hello there,im unsure if ive put this in the correct section,would a mod move it if it is wrong please-it did seem the most relavant to me though

 

anyway on to my issue

 

we got a loan from provident 15 weeks ago

here are the specifics

the loan was for 1300 the interest on this over 106 weeks is 1456 making the total amount 2756

repayments were at 26 pound per week so to date 390 has been paid

 

now im currently in a position to pay it off early,having spoken to the rep he says we would owe 1311.16 to settle now

to me this seems a little higher than i was expecting

i have tried using the oft dual calc app but couldnt figure it out correctly

 

im just wondering if there is anybody here who knows about these thing and can use the calc correctly to help me out a little and tell me what the correct amount i should be charged for early settlement is please

 

thanks very much

craig

[havinastella]

You should have a early repayments schedule easily to hand on your agreement!

 

If you haven't and with Interest (APR) that high, I'd be paying a lot less than £1311!

 

Jogs

[violentj]

hi thanks for the reply,there is an early settlement example based on a £100 pound loan showing the settlement rate at week 27 week 53 and week 80 but nothing relating to the actual loan

[callumsgran]

Sounds about right to me, they dont take much off!

From my sums and ive only used my own calculator, you're paying £14 pw interest and £12 actual payment

You've had the money for 15 weeks so you have to pay that back plus the interest for the weeks you've had it

[violentj]

this is where im confused,if ive been paying 14pw interest,then surely ive paid the interest for the time ive had it? which makes 180 paid off on the 1300 leaving 1120 and 210 interest already paid-surely i cant be charged the interest that would have been paid?

 

to me that means to pay it off now should be 1120 which is the balance of the actual amount borrowed ?

[callumsgran]

I know where you're coming from but it doesnt work like that sadly, most loans actually take the interest first and they will say they were prepared to wait for the whole 106 weeks for you to repay all the money and at the end of the day they are there to make money and you ending the loan early means they arent going to get so much off of you now so they charge a bit more for that!