Hi
Just wondered if anyone can help me. I took a loan out with capital one finance last year. Was due to pay back £428.82 on 31st Jan. Was unable to repay this so I sent them an e-mail saying so & asking if they would be able to set up a repayment plan for me.
They sent me this e-mail back.
Dear Andrew,
Thank you for your email.
Unfortunately we do not accept payment plans as our loans are only short term. Any payment you make will come off your outstanding balance but will not freeze your account. The interest on your account is £120.32 if you make this payment we are able to defer your account until your next pay date. This prevents your account from incurring late fees and your account being passed to a debt collection company.
At the moment we are unable to set up direct debits however you can maje a payment using your debit card or transferring money in to our account. You can set up your deferral by emailing us or calling a member of the collections team on: 020 8166 1472.
Kind Regards
CFO Collections Team
I e-mailed them back my understanding of this & asked them for a simpler explanation. They sent me this.
Dear Andrew.
No this is not correct.
If you decided to defer your account every month by paying your interest plus extra towards your principle amount, the following month your interest would be calculated on your new principal amount.
For example your balance is currently £428.82 your principal amount is £308.50 and your interest £120.32. if you were to pay £131 this would pay your interest and leave you with a principal amount of £297.82. In February your balance due will be £413.96 your principle loan amount would be £297.82 and your interest £116.15 - You interest would be calculated on the new principle amount at the same rate of 39%. The interest amount would decrease every month as your principle amount decreases. If you continued to make the payment of £131 every month your balance would be cleared in eight months.
Of course the total repayment amount will be greater than the original loan but this would be down to the fact that you are only paying £10.68p towards your actual loan. If you are to pay your interest plus a higher amount then the overall amount paid would be less.
I hope this has clears up any confusion.
Kind Regards
CFO Collections team.
I refused on the basis of that I would have to make 8 payments of £131 to clear the balance would mean having to pay them £1048 to clear the loan. Couldn't afford £131 a month anyway. They are now chasuing me for money saying I owe them £804. I asked for an explanation of this & recieved this e-mail this morning.
Good Morning.
Further to our telephone conversation yesterday please find a breakdown of your account below as requested.
Your principle loan amount was for £308.50 with interest of £120.32. In total your loan agreement was £428.82. We failed to receive any payment from you on your due date on the 31st January 2012 and as a result of this your account incurred added interest as follows:
Day 1: £25
Day 6: £25
Day 10: £25
Day 14: £120.32
Day 21: £25
Day 30: £50
Day 33: £104.87
This took your balance up to £804. Please contact a member of collections on 0203 195 1185 to discuss your repayment.
Kind Regards
Katie
CFO Collections Team
Just wanted to know can they charge me £804 for the loan. They have added £375.19 for 33 days interest.Any advice on how to deal with this would be appreciated.
Thanks
Andrew
