Variable Rate loan, 1000 euro extra

N

Nesta

Registered User
Messages
42
Is it possible to to accumulte an extra 1000 euro in interest over a period of 5 years on a 15000 euro loan.
5 years ago this week i took out a loan but have been informed i still owe over 1000 because the loan was variable rate and the interest rose over the period of the loan ....... i was shocked to think it could rise by so much and if so i have learned a very costly lesson

thanks in advance
 
It sounds to me as though you signed a contract entitling the lender to change the number and amount of your installments . you should have read your terms and conditons . Its really bad but the contract can be held up in a court of law , Im sure they never told you you would have that nice surprise at the end of your loan , but you didnt ask. i guess you know now .
you would be best to argue a reduced settlement or spread out the payment .
but if you arent satisfied with that I would take it further and see what an ombudsman would say .
 
Nesta - I would have thought that your repayments would have increased at the same time as the interest rate increased; was this not the case?


 
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