HP finance settlement

[cirian75]

Bought a car July last year partially on HP.

Have decided I just want to pay it off.

Not contacted them yet for the figure, but do they front load the interest?

[66HFM]

Best thing to do is to just contact them for a settlement figure and you can then work out if its been front loaded or spread evenly.

[Sheepshanks]

It’s always “front loaded” at the outset but the settlement figure will take account of early repayment so the interest beyond the settlement date, other than a couple of months of it, gets cancelled.

[tallpaul26]

Your HP agreement will clearly describe the terms of early repayment.

[Blue_star]

Shouldnt be legal; thats not how loans work.

But you might have an early repayment charge. Can you find in your tnc?

Check what your principal is as of today and cal them and ask
How much to repay loan, figure should be out by purchase payment ( £1? ) and if any early repayment charge

[cirian75]

talked to them, no interest front loaded, payoff figure is within £100 of my guesstimate

[Sheepshanks]

cirian75 said:

talked to them, no interest front loaded, payoff figure is within £100 of my guesstimate

As said earlier, the total interest is added into the deal at the outset - but it’s recalculated when you settle the loan. This is Consumer Credit law, not lenders doing you a favour.

“Front loaded” sounds bad, but it’s the way loans, mortgages etc, work.