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Greenwood Finance - early settlement discount

Hi,

My girlfriend has a couple of loans with the door-to-door credit sharks Greenwood Finance - you know, borrow £700 over 40 weeks and pay back only £1200!

I'm going to pay it off for her , but they are not very forthcoming with whether she will get a discount for early settlement and if so how much. Best i've got out of them so far is 'well she's behind with her payments so she might not be due one'.

Any experience with these people? Any regulations about how much she can get off for early payment?

She is about 10 weeks into a 40 week scheme.

Cheers

Reply to
Kermit
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They are required by law to give you a settlement figure. Report them to trading standards if you don't get one out of them.

Reply to
Jonathan Bryce

It's probably down to the terms & conditions.

The TMF Dealing with Debt forum may know more -

Some of the helplines on my webpage might be able to advise

Daytona

Reply to
Daytona

In message , Kermit writes

I think you are asking them the wrong question. You appear to be asking if she will get a discount, what you should be asking is for a 'settlement figure' which they are obliged to give her. This will show you if she is getting a 'discount' or not by comparing the settlement figure with the result of = (£1200 - payments made to date).

Bear in mind that if she is in arrears then the extra interest that will have accrued on the amount unpaid may have increased the total payment figure of £1200 if she was to continue to the end. They should give you a settlement figure below £1200 to reflect the shorter period of the loan.

Reply to
john boyle

I believe that Greenwoods are owned by Provident, and that the interest is front-end loaded. This means that she should not be charged any extra interest if she is late with a few payments (although she should still get a settlement figure (probably calculated according to the rule of 78) if the loan is settled early.

Mark

Reply to
Mark O'Keeffe

In message , Mark O'Keeffe writes

Fair enough. I defer to your better knowledge.

Reply to
john boyle

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