I need some advice

[loopylou941]

i took out a loan of 1,500 over a 3 year period. After my 1st repayment i was made redundant and was unable to pay two monthly repayments. Once i gained new employment i immediatley began to repay the loan. My loan would have been up in December last year, however because two payments were missed at the beginning my repayments have carried on until February this year. My loan would have been paid in full + interest after this last payment. The loan company is now saying that i owe them about 900 (i think in interest) because of the two months that were originally missed. Can they do this? As far as the total payable amount in the loan agreement goes this has been paid back fully. I have also never receieved any correspondance during the entire period indicating that i owe them this extra amount. Can anyone advise please.

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[sweeps]

Hard to say without seeing the details, but you were probably dinged with penalty fees. Also since the missed payments happened early in the loan, the interest accrued was probably more damaging than if they happened late in the loan.

[DebbieL]

Just on first gut reaction it seems pretty excessive for a $1500 original loan amount payed over 36 months to be dinged $900 for 2 late payments, but I'm sure it's all in the fine print that you signed. Sorry, that's an expensive lesson.

[maat55]

Ask them for a statement that show's how this amount is valid.

[Slug]

My advice is to look closely at the statement justifying this amt., learn from this experience, and seek out alternative loan sources in the future (like Prosper) where rates and penalties are not so exorbitant.