Finance Interest Rebate

[kennylarsen]

Hi all,

Firstly, this is not financial advice, and might be wrong. But I've read a lot on here about the finance package and once you clear the 12 months your liable to the full interest for the term regardless of when you pay it off. When I got my documents nothing seemed to suggest that, what was suggested was that they would add all the interest and then rebate it (minus an extra 30 days) if you paid early. To half test that I made an overpayment and got a letter showing an interest rebate. See the two attached documents. I'll be paying it off in 12 months, but others might want to look carefully into the details, the longer option might not be as horrific as it first seems...see the attached documents.

Kenny

 

[steaky360]

I would imagine (although I don't have the finance agreement to check) that if you end up going over the 12 months and overpay to effectively reduce the term (and therefore be perhaps eligable for the rebate), there will be an early settlement fee.

There is a early settlement fee if you pay off within 12 months, perhaps its the same (£29).

But that sounds like good news, if you can't pay it off in 12 months but can pay it off in 13 its still perhaps a viable option depending on circumstances.