Loan early repayment - Still paying interest?

[C70R]

I took out a loan a few months back to pay for a BTL flat renovation, and I called today to settle it early (with a few months to go). Always my intention.
The agreement that I 'signed' tells me that my interest is charged at a daily rate (albeit a tiny number), so I was under the impression that early repayment would save me paying an amount of interest (equivalent to the outstanding months), and not an insubstantial sum.
Having just called to settle, I was told that this wasn't the case, and the amount I was due to repay was still inclusive of the interest I would be accruing in the coming months.

This immediately set alarm bells ringing with me, particularly when the phone jockey told me that my "fixed term loan" doesn't have "daily interest" - completely contrary to the contract.

Anyone had similar experiences? Google-fu isn't bringing back a great deal that's helpful, although the CAB website seems to agree with me.

[Tyre Smoke]

Surely if your loan agreement that you signed says interest is calculated daily, then it's calculated daily?

However, there may be a clause that says you cannot make over payments/early settlement.

You read it before you signed it, right?

[C70R]

Tyre Smoke said:

Surely if your loan agreement that you signed says interest is calculated daily, then it's calculated daily?

However, there may be a clause that says you cannot make over payments/early settlement.

You read it before you signed it, right?

I did indeed read it, and there are no restrictions on overpayment or early repayment - it's a standard contract. It's baffling, but the girl I spoke to on the phone just kept telling me "computer says No"...

[silentbrown]

C70R said:

I did indeed read it, and there are no restrictions on overpayment or early repayment - it's a standard contract. It's baffling, but the girl I spoke to on the phone just kept telling me "computer says No"...

Your paperwork should tell you exactly what happen if you want to repay the loan early. I *think* they can't charge for more than 58 day's interest - but your loan paperwork should spell it out.

[Cosworth4388]

I know with the Barclay loan I settled earlier this month it's 30 days interest.
The same applied with overpayments so if I paid off an extra say £2000 I would pay interest on £2000 for 30days , then when the £2000 was applied to the loan it was £2000 Minus the interest