Car finance settlement
Discussion
I need some help with a quick question as I'm getting conflicted opinions on what I think is correct please.
I have a settlement figure generated on the 9th of the month. The settlement figure is valid until the 8th of the following month,
My monthly payment date is 26th month.
The settlement quote says:
[i] The final settlement figure is based on the remaining balance due under the agreement, including any arrears (if applicable), minus a rebate of charges included in the total charge for credit, which includes a rebate of interest. The amount of the rebate is calculated in accordance with the Consumer Credit (Early Settlement) Regulations 2004 (the Regulations).
It assumes any monthly repayment which we are currently processing will still be paid (in addition to the settlement figure). [/i]
If I pay the settlement figure on the 12th of the month, do I still need to pay the monthly payment on top of that as well- the one that I would have had to pay on the 26th?
I'm being told that I do
I know from previous experience (albeit with a different finance house) when I've received a settlement figure (assume the same dates/circumstances as above) and settled the finance agreement after the monthly has gone out (but before the end of the settlement figure period), I've been able to claim back the monthly payment.
Any thoughts please? (other than the usual PH; only buy cars you can afford etc etc)
I have a settlement figure generated on the 9th of the month. The settlement figure is valid until the 8th of the following month,
My monthly payment date is 26th month.
The settlement quote says:
[i] The final settlement figure is based on the remaining balance due under the agreement, including any arrears (if applicable), minus a rebate of charges included in the total charge for credit, which includes a rebate of interest. The amount of the rebate is calculated in accordance with the Consumer Credit (Early Settlement) Regulations 2004 (the Regulations).
It assumes any monthly repayment which we are currently processing will still be paid (in addition to the settlement figure). [/i]
If I pay the settlement figure on the 12th of the month, do I still need to pay the monthly payment on top of that as well- the one that I would have had to pay on the 26th?
I'm being told that I do
I know from previous experience (albeit with a different finance house) when I've received a settlement figure (assume the same dates/circumstances as above) and settled the finance agreement after the monthly has gone out (but before the end of the settlement figure period), I've been able to claim back the monthly payment.
Any thoughts please? (other than the usual PH; only buy cars you can afford etc etc)
When i settled my BMW Finance back in June, it was paid off around the 9th of the month but my normal monthly payment still went out on the 16th. It was then returned on the 1st of the next month (i chased it but maybe it would of come back automatically as my account showed me being that payment in credit).
duckson said:
When i settled my BMW Finance back in June, it was paid off around the 9th of the month but my normal monthly payment still went out on the 16th. It was then returned on the 1st of the next month (i chased it but maybe it would of come back automatically as my account showed me being that payment in credit).
Yep this is BMW finance as well. As I mentioned, my previous experience with somebody else was the same as yours - pay it and claim it back. I'm being told, I think incorrectly, that I need to pay it and they keep it.ben5575 said:
Yep this is BMW finance as well. As I mentioned, my previous experience with somebody else was the same as yours - pay it and claim it back. I'm being told, I think incorrectly, that I need to pay it and they keep it.
You should have the following in your quotation letter;What is an interim repayment?
This is a monthly repayment that is due within the quotation period up to and including the Settlement Date, and is included in the Settlement Figure. Please do not cancel your direct debit, once you have paid the Settlement Figure in full, we will refund any overpayment made by you.
So if you pay the settlement figure you have already paid that monthly payment in effect hence why it’s refunded to you if it still goes out.
duckson said:
You should have the following in your quotation letter;
What is an interim repayment?
This is a monthly repayment that is due within the quotation period up to and including the Settlement Date, and is included in the Settlement Figure. Please do not cancel your direct debit, once you have paid the Settlement Figure in full, we will refund any overpayment made by you.
So if you pay the settlement figure you have already paid that monthly payment in effect hence why it’s refunded to you if it still goes out.
Perfect. Found that clause. Thanks for your help What is an interim repayment?
This is a monthly repayment that is due within the quotation period up to and including the Settlement Date, and is included in the Settlement Figure. Please do not cancel your direct debit, once you have paid the Settlement Figure in full, we will refund any overpayment made by you.
So if you pay the settlement figure you have already paid that monthly payment in effect hence why it’s refunded to you if it still goes out.
interstellar said:
Similar question as above but why not cancel the dd when you pay the settlement figure then you don’t have to be refunded if they take it after the loan is settled?
Wouldn't that be classed as a missed payment which would mess your credit rating?Edited by interstellar on Thursday 15th May 05:42
jonsp said:
interstellar said:
Similar question as above but why not cancel the dd when you pay the settlement figure then you don’t have to be refunded if they take it after the loan is settled?
Wouldn't that be classed as a missed payment which would mess your credit rating?Edited by interstellar on Thursday 15th May 05:42
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