Swift Advances Plc?

Re: Swift Advances Plc?

The calculator I use....uses this formulaThis calculator first calculates the monthly payment using C+E as the total loan amount:

where r is the adjusted equivalent interest rate applied to the total loan amount C+E

The APR is essentially the actual interest rate applied to the intended loan amount C and can be calculated iteratively by solving the following equation using the Newton-Raphson method:

The annual percentage rate A is calculated using the following formula:

Sparkie

This formual is none compliant. It will give an approximation but may mislead if irregualr intervals or payment amounts are made. The correct formula is contained within the Total charge for credit regulations 1980 or the OFT 144 Guide although these to are slightly out of date as the the requirment for the definition of the sample period has changed in the recent statutory ammendments to comply with the European Consumer Credit Directive implemented in Feb this year.

Peter

Re: Swift Advances Plc?

[quote]=yorkie-dave;221980]poor peter... []

Why?

Peter

Re: Swift Advances Plc?

Hi again Peter,

As the interest rate is a prescribed term......and its incorrect .....then this would mean that as the loan is a secured loan section 106 of the CCA would apply.......which is absolutely brilliant for Dave if thats correct please check it out for him and give your view.

Sparkie

Yes it would via 105.

Peter

[yorkie-dave]

Re: Swift Advances Plc?

poor peter...

[Sparkie1723]

Re: Swift Advances Plc?

No why should they, you are simply making an inquiry.

It will put the wind up them though, it will be interesting to see what they have to say.

meanwhie have a look here i did this a few years ago may help you understand the issues.

http://www.legalbeagles.info/forums/...ad.php?t=23763

Peter
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THe APR is just an indication of the credit bargain it is not a prescribed term. Wilson , etc were all won because one of the prescribed terms was wrong, in your case either the total credit or the interest.
They are both iterdependant.

Peter

Hi again Peter,

As the interest rate is a prescribed term......and its incorrect .....then this would mean that as the loan is a secured loan section 106 of the CCA would apply.......which is absolutely brilliant for Dave if thats correct please check it out for him and give your view.

Sparkie

[Sparkie1723]

Re: Swift Advances Plc?

The APR is correct, on the agreement although you are getting nearer. What is the 15.4 next to interest rate? it is not the interest rate in this contract is it?
Honestly Sparky i used to do this for a living.
I can show you how it is calculated if you like.

Peter

Exactly Peter that's how and why I am learning this side of operations off you

Having read it properly the Interest rate is within the tolerances so my previous calculations were done wrong........and I hold my hands up ....the mistake will not bemade again ....once taught I never forget...............THANK YOU :yield:

The correct APR is ............15.2315 as you have said........I was wrong and first to admit it

Sparkie

[yorkie-dave]

Re: Swift Advances Plc?

sorry for some reason i thought they charged if they had to send a letter to you.

we have had 3 yearly statements from swift,the last one dated jun 2010 to june 2011

it says:

opening balance 7th june 2010 £8,633.09p
closing balance 6th june 2011 £6,885.57p

the rates of interest applicable to your mortgage during the period of this statement were: 8 june 2010 15.00%

[Sparkie1723]

Re: Swift Advances Plc?

The calculator I use....uses this formulaThis calculator first calculates the monthly payment using C+E as the total loan amount:

where r is the adjusted equivalent interest rate applied to the total loan amount C+E

The APR is essentially the actual interest rate applied to the intended loan amount C and can be calculated iteratively by solving the following equation using the Newton-Raphson method:

The annual percentage rate A is calculated using the following formula:

Sparkie

[jumper999]

Re: Swift Advances Plc?

One of the terms and conditions in my agreement state that if the LENDER MAY VARY THE INTEREST RATE PER MONTH (after any fixed rate period) FROM TIME TO TIME TO TAKE ACCOUNT OF ACTUAL OR EXPECTED CHANGES IN MARKET CONDITIONS AFTER GIVING THE BORROWER NOT LESS THAN SEVEN DAYS NOTICE IN WRITING.

I know judging by the account statement my lender sent me that each month the interest rate has gone up and up...........but I never had any notification of this.

That is just one more thing added to my list.

Should a lender advise the borrower that interest rate will be going up? seeing as it clearly states on the agreement "varaib;e rate loan"?

Re: Swift Advances Plc?

Advanced APR Calculator
Loan Amount (C): £ 14, 126.38
Extra Cost (E): £ 808. 63
Interest Rate % (R): 15.4

Compound Frequency (m)
Daily (365/Yr) Daily (360/Yr) Weekly (52/Yr) Bi-Weekly (26/Yr) Semi-Monthly (24/Yr) Monthly (12/Yr) Bi-Monthly (6/Yr) Quarterly (4/Yr) Semi-Annually (2/Yr) Annually (1/Yr)
No. of Payments (N): 120
Payment Frequency (q)
Daily (365/Yr) Daily (360/Yr) Weekly (52/Yr) Bi-Weekly (26/Yr) Semi-Monthly (24/Yr) Monthly (12/Yr) Bi-Monthly (6/Yr) Quarterly (4/Yr) Semi-Annually (2/Yr) Annually (1/Yr)
APR:16.9007 %

Just to double check heres an advanced calculation just for the record. If the interst is calculated as a yearly interest the APR is
APR:17.0882 %

Sparkie

The APR is correct, on the agreement although you are getting nearer. What is the 15.4 next to interest rate? it is not the interest rate in this contract is it?
Honestly Sparky i used to do this for a living.
I can show you how it is calculated if you like.

Peter

Re: Swift Advances Plc?

Hi
if you are not behind with you payments i would push to get the amount that has been credited to intrest debited against your ballance.

The amount that you have been paying interest on is incorrect so to much of every payment made would have been allocated to them.
The fact that the APR is correct makes the offence worse because it means that they realise that these fees where costs for credit.

Peter

[Sparkie1723]

Re: Swift Advances Plc?

Advanced APR Calculator
Loan Amount (C): £ 14, 126.38
Extra Cost (E): £ 808. 63
Interest Rate % (R): 15.4

Compound Frequency (m)
Daily (365/Yr) Daily (360/Yr) Weekly (52/Yr) Bi-Weekly (26/Yr) Semi-Monthly (24/Yr) Monthly (12/Yr) Bi-Monthly (6/Yr) Quarterly (4/Yr) Semi-Annually (2/Yr) Annually (1/Yr)
No. of Payments (N): 120
Payment Frequency (q)
Daily (365/Yr) Daily (360/Yr) Weekly (52/Yr) Bi-Weekly (26/Yr) Semi-Monthly (24/Yr) Monthly (12/Yr) Bi-Monthly (6/Yr) Quarterly (4/Yr) Semi-Annually (2/Yr) Annually (1/Yr)
APR:16.9007 %

Just to double check heres an advanced calculation just for the record. If the interst is calculated as a yearly interest the APR is
APR:17.0882 %


As you can see I have used the correct figures now
Sparkie

Re: Swift Advances Plc?

ok peter thankyou.

right if i send the letter you stated off to swift,what then when they reply,will they charge me for letters being sent to me and add more costs etc?

ive never been behind on payments nor wish to get in that situation.

thanks
dave

No why should they, you are simply making an inquiry.

It will put the wind up them though, it will be interesting to see what they have to say.

meanwhie have a look here i did this a few years ago may help you understand the issues.

http://www.legalbeagles.info/forums/...ad.php?t=23763

Peter
------------------------------- merged -------------------------------

if the apr is correct then what pray tell am i sending the letter for..its all gone over my head

THe APR is just an indication of the credit bargain it is not a prescribed term. Wilson , etc were all won because one of the prescribed terms was wrong, in your case either the total credit or the interest.
They are both iterdependant.

Peter

[yorkie-dave]

Re: Swift Advances Plc?

if the apr is correct then what pray tell am i sending the letter for..its all gone over my head

Re: Swift Advances Plc?

APR Calculator

Loan Amount (C): £ 14,935
Extra Cost (E): £ 808.38
Interest Rate % (R): 15.4
No. of Months (N): 120

APR:
16.8200 %

The above is what I believe the APR should be shown as on your agreement...............this is not my calculations but by one of the best APR calculators there is available

Sparkie

Remember everyone I have no legal training and my views are not to taken as legal advice.........I am a dumb 74 year old senile auto spark

Sorry sparky i think the loan was for£14126.43
The amount you entered included the extra cost.
As said the APR is correct.

Peter