[Closed] Loan has gone up after company changed hands?

Are you wanting a settlement amount i.e. what you'd pay now to settle it so removing future interest, or a total amount that you'll have to pay if you continue to make the monthly repayments?

Suspect that's the difference of what you are expecting and the new company providing you?

Companies can't just add on extra interest for fun, you signed up to a contract of a specific rate.

Not exactly mate. They gave me a figure if I carried on paying the loan and a figure if I paid it off today. Both were higher than what I know I owed before because I've looked into clearing it recently.

Early payoff usually has a penalty varying from a couple of hundred pounds to years of interest. Its possible the new company has different rules on this

the total amount yo have to pay if you continue monthly payments will always be more than the sum owed because of interest.

Had you reconciled the exact amount against a statement or just your own calculation? You won’t be paying down the same amount of the loan amount each month, because each payment will be a combination of loan amount and interest on the outstanding balance.

Basically every month you pay off a bit, then borrow the rest for a month, and pay the interest on that short loan. A calculation is done at the start to allow the payments you make to be level, so a higher proportion of your first payments are interest than your last.

Second option: new company could mean your loan has been transferred from one system to another, and done badly. If you have a statement then they’ll be able to reconcile their loan balance back to that and fix it.

The new company might have different rules but is that relevant? Aren't repayment conditions and penalties part of the loan agreement?

I would have thought the terms of the original loan are still valid, that's the contract you entered into. I'd go back to the original documents, they should have the amount of credit and total payable documented. Based on repayments already made you should be able to calculate the outstanding amount.

Thanks everyone. I'll have a look through the original documents.
Like I said I had a pretty accurate settlement figure from the old company as I'd looked into paying it off.
As long as it's all legal I'll have to go along with it I suppose but I will check it out.

Is it a mortgage that's fixed for a few years and then reverts to SVR? If so, might they be calculating with a different SVR?

As long as it’s all legal I’ll have to go along with it I suppose

How could it be legal? Otherwise what's to stop company A giving out loans and then selling out to company B (who the owners of company A also own) who then change the loan terms in their favour?

If that's the case is the route to go through CAB?

I would have thought the terms of the original loan are still valid, that’s the contract you entered into.

Yes. You can't just sell the debt and change the t&cs.

How could it be legal? Otherwise what’s to stop company A giving out loans and then selling out to company B (who the owners of company A also own) who then change the loan terms in their favour?

probably nothing. Companies often do similar things as a way of getting out of paying debts.

If that’s the case is the route to go through CAB?

Yes, they will see this regularly. Companies cannot change the terms of a signed agreement without your express agreement. If a company buys another company then they agree to honour the original contract you signed. The only exception is if they have a clause in the contract like mobile phone companies do where they can put up the price by RPI every 12 months.