Haven't finished paying off a loan, yet it's settled ???

[PumpkinSteve]

I took a loan out a little over two years ago, I chose a two month 'holiday period' as an option so that the loan was over 26 months with 24 payments. The loan was due to be settled this November but I received a letter saying my loan is settled as all the payments had been made. I phoned them (Tesco Bank) and they said there is no error, the loan is settled...the thing is I don't just think, I know I haven't made all the payments.

I received a payment record slip a while back showing the dates and amounts of my payments, it confirmed that the first payment was made in November 2009 and therefore the last payment should be November 2011.

Whilst I'm grateful that I've potentially saved a few hundred pounds I'm a little wary that they could come back in a few months/ years saying I owe them a load of interest for an unpaid debt. I will say that I've had no problems with Tesco at all, in fact this has been by far the best experience I've had with a loan.


Short version:

Took a loan over 24 months. Made 23 payments, loan company informed me loan was settled.

[anonymous-user]

Kerching!

[tank slapper]

Ask them to confirm it in writing.

[K87]

if the first payment was November 2009 then surely the 24th payment would be october 2011? not november

[cuprabob]

K87 said:

if the first payment was November 2009 then surely the 24th payment would be october 2011? not november

This is correct, you need to understand how a calendar works :-)

1st payement Nov, 24th payment is Oct.

If you have kids or grand kids ask then and they'll confirm your error

PS. no one on PH knows what a loan is as we only use cash all the time :-)

Edited by cuprabob on Sunday 6th November 11:00

Edited by cuprabob on Sunday 6th November 11:02

[66comanche]

cuprabob said:

K87 said:

if the first payment was November 2009 then surely the 24th payment would be october 2011? not november

This is correct, you need to understand how a calendar works :-)

1st payement Nov, 24th payment is Oct.

Indeed, what's confusing me is that OP says he took a two month holiday period making it a 26 month loan, so shouldn't the last payment be Dec 2011?

[cuprabob]

66comanche said:

Indeed, what's confusing me is that OP says he took a two month holiday period making it a 26 month loan, so shouldn't the last payment be Dec 2011?

2 month holiday period would be prior to the first payment. Just means once you get the loan your first payment is deferred for 2 months but the payments are slightly higher to cover the 2 months extra interest