Car finance early repayment question

[Lasitha]

Hi All,

I'm after a little bit of help regarding my car finance. I had an agreement where I borrowed about 1/3 of the car value and paid the interest monthly with a lump sum at the end of the agreement (equal to the amount i borrowed).

I want to pay the car off early and when obtaining the settlement figure the finance company have said I also need to pay 1 month 28 days interest. However, my finance agreement doesn't say this anywhere and when pressed the finance company said it's in line with the consumer credit act and it's in there.

I've done a bit of research but can't this anywhere. There are some places where the finance company do usually charge 1 or 2 months interest as a charge, but given this is not in my agreement are they trying to pull a fast one and get 2 months interest from me?

Thanks in advance for the help.


Las

[rfoster]

Assuming it's a conditional sale regulated by the consumer credit act then no, they're not pulling a fast one. All finance companies have to adhere to exactly the same formula when calculating your settlement figure under this act and they're quoting correctly.

[Lasitha]

ok, thanks for the information.