Does this settlement figure sound correct?

[landy_alert]

Hi everyone:)

 

We had a second charge loan/mortgage on our property with a subprime lender which we took out in mid 2006 and repaid when we sold our house in November 2007.

 

We had previously incurred some arrears charges, which we are currently trying to reclaim.

 

When we received the redemption statement prior to settlement we didn't query the amount of the settlement figure as this was pre-Cag and we were very naive back then. Now having got involved in attempting to reclaim the charges, I am wondering if the actual figure we repaid was correct and would very much appreciate some opinions on this please!

 

We had originally requested to borrow £50,000, but by the time PPI (which we are also in the process of reclaiming) and fees were added this grew to £58,553.00.

 

These are the figures as per the redemption statement (I have approximated the charges and total for fear of identification) -

 

Original loan amount - £58,553.00

Interest charged - £13,844.34

Less payments received - £11,538.75

Subtotal - £60,858.59

 

Charges incurred - £4000 (approximately)

 

Redemption admin fee - £250

Early settlement interest charged - £5218.62

 

Settlement figure - £70,000.00 (approximately)

 

The interest rate charged started at 14.52% and rose to 15.77% over the course of the time we had the mortgage.

 

Does anyone think the settlement figure seems correct?

 

Many thanks for looking,

 

Landy x

[landy_alert]

Can anyone advise on this please?

 

Thank you,

 

Landy x

[landy_alert]

I have written to the lender and asked them to confirm the method they used to calculate the settlement figure.

 

I would still appreciate others' advice on this please;)

 

Thanx xxx

[bobbyh99]

Landy

 

What is the term of the loan?

how much were your contractual monthy payments?

how does the amount paid back break down?

What amounts make up the £58,533? I.e. loan £50k, PPI £££, Fees £££

Does the credit agreement mention early repayment charges?

 

BobbyH

[landy_alert]

Hi BobbyH:)

 

I've answered your questions in red below -

 

Landy

 

What is the term of the loan?

300 months (but was repaid in full after 15)

how much were your contractual monthy payments?

They started at £728.23, but rose to £789.70

how does the amount paid back break down?

Original loan amount £58,553.00 + interest charged £13,844.34 - payments made £11,538.75 = subtotal £60,858.59

Charges incurred £3401.28 (this included approx £1500 legal fees from a repossession hearing which was cancelled when we repaid the arrears owed)

Redemption admin fee £250.00

Early settlement interest charged £5218.62

Total settlement figure £69,728.49

What amounts make up the £58,533? I.e. loan £50k, PPI £££, Fees £££

Loan £50,000

PPI £5323.00

Broker's fee £2500.00

Loan admin fee £595.00

Title indemnity fee £136.00

Does the credit agreement mention early repayment charges?

The agreement states the following early repayment charges -

'6 months interest if we receive the notice within 36 months from date we signed the agreement

5 months interest if we received notice 36 - 48 months from date we signed the agreement' etc etc..........

BobbyH

 

Let me know if you need any further info. Your help with this is greatly appreciated!

 

Many thanks,

 

Landy x

[landy_alert]

Can anyone offer any advice on this please?

 

Many thanks,

 

Landy x

[Peterbard]

HI

 

what is the date on this is it before 2008

 

Peter

[landy_alert]

Bump!

[landy_alert]

Bump...........

[Surfer01]

Was this a Firstplus loan or another lender? Your settlement figure shoudl nto be much higher than the original loan if they used Ruel 78 which they cna do on an unrfegulated loan. I am having similar hassles with Firstplus and the only way it seems you can nail them is under UTCCR S5.

[landy_alert]

Was this a Firstplus loan or another lender? Your settlement figure shoudl nto be much higher than the original loan if they used Ruel 78 which they cna do on an unrfegulated loan. I am having similar hassles with Firstplus and the only way it seems you can nail them is under UTCCR S5.

 

Hi Surfer:)

 

Thanks for dropping by! It was Swift Advances. Are you saying it can be much higher with rule of 78 or it shouldn't be much higher? Apologies for being dim! I was under the impression it could be a lot higher, but cannot find out if that's the method they used. I've asked them what method they used but have had no response:(

 

Landy x

[Surfer01]

I strongly suggest that you start off with sending them a SAR. Secondly send them another letter asking for a breakdown on how they calculated the settlement figure.

Not too sure whether you should mention that under UTCCR S5 you feel that as a client yo have been treated unfairly but hopefully someone else will be able to advise better than myself. Theya re obliged to give you a breakdown on how they arrived at the settlement figure nd what method they used. Send bothe letters recorded mail for a signature. Also shows that you mean business. Start with the SAR as soon as possible.

[landy_alert]

Hi Surfer:)

 

This is their breakdown of the settlement figure -

 

These are the figures as per the redemption statement (I have approximated the charges and total for fear of identification) -

 

Original loan amount - £58,553.00

Interest charged - £13,844.34

Less payments received - £11,538.75

Subtotal - £60,858.59

 

Charges incurred - £4000 (approximately)

 

Redemption admin fee - £250

Early settlement interest charged - £5218.62

 

Settlement figure - £70,000.00 (approximately)

 

The interest rate charged started at 14.52% and rose to 15.77% over the course of the time we had the mortgage.

 

Does anyone think the settlement figure seems correct?

 

 

I did a SAR last year and received a further copy of this but no info on the method they used to calculate it. I have since requested a more detailed breakdown as well as the method they used for their calculations, but they have totally ignored my recorded delivery and special delivery letters.

 

I have also filed complaints with both the FSA and the OFT - who have come close to admitting that Swift is under investigation by them but of course cannot investigate individual complaints.

 

I also filed a complaint with the FLA, but they are satisfied that Swift has done nothing against the rules. The FOS cannot help me because of the dates involved etc.

 

All I can do is continue to bombard Swift with requests for the method they used and remind them of their obligations;)

 

Thanks again for your help and good luck with your complaint against First Plus!

 

Landy x