Ulster Bank loan interest problem

J

jerry lee

Guest
Wondering if anyone can help me. About six months ago I took out a personal loan from Ulster Bank for €35,000. It was for a short term need and I paid it back after about 4 and a half months. I was levied with interest of around €500 for the first three month period which was fine. On closing the account the teller informed me they could not tell me how much interest was due because of their new platform - it all seems to come from Scotland or Belfast now.

So imagine my surprise when this week I have been hit with another €500 for the quarter despite the fact the loan is long repaid. The branch are telling me that interest is now levied on a quarterly rather than weekly or monthly basis but are checking it out further for me.

Surely this cannot be right?

Any comments appreciated.

JL
 
What do the terms & conditions of the loan agreement say about how interest will be charged?
 
As a rough interest calculation what result do you get from this calculation

Interest estimate = [35,000 * (Annual Interest Rate Percentage/100)]/3

Dividing by 3 as you cleared the loan in 4 months.

How close is it to the approx €1000 interest you were charged

Working the calculation backwards suggests your rate was 8-9% which is high.
 
If you post what repayments you made and when you made them then it can be checked against the interest rate they quoted you when you took out the loan.
 
can confirm that they do charge interest quarterly now. Interest would accrue on a daily basis therefore if there was no debt this €500 would be the interest which had accrued up to the point of repayment.
 
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