Swift Advances/Ocean finance

[Guest]

Re: Swift Advances/Ocean finance

Just to illustrate on a simple, interest only loan at 1% per month the APR would be 12,68%$ not 12 , on a 2% the APR would be 26.84% on a 3% it would be 42.45 etc. It is a none linear relationship based on what they call an actuarial method of calculation. I can put the formula up if you like.

[meellis]

Re: Swift Advances/Ocean finance

"If you go to any loan calculator that will work out the APR it will come back the same as the flat rate because there are no costs or charges to add" is the full quote.
£8000 loan amount, 0 costs, 15.72% annual flat rate (1.31%monthly), 120 payments of £132.62, total paid £15914.15 ,total interest £7914.15 APR 15.72%
£7660 loan amount, £340 costs, 15.72% annual flat rate, 120 payments of £132.62, total paid £15914.15, Total interest £8254.15 , APR 16.89%
£8000 loan amount, £359 costs, 15.72% annual flat rate, 120 payments of £138.57, total paid £16628.30, total interest £8628.30, APR 16.91%
That's how loan calculators see it.

[Guest]

Re: Swift Advances/Ocean finance

"If you go to any loan calculator that will work out the APR it will come back the same as the flat rate because there are no costs or charges to add" is the full quote.
£8000 loan amount, 0 costs, 15.72% annual flat rate (1.31%monthly), 120 payments of £132.62, total paid £15914.15 ,total interest £7914.15 APR 15.72%
£7660 loan amount, £340 costs, 15.72% annual flat rate, 120 payments of £132.62, total paid £15914.15, Total interest £8254.15 , APR 16.89%
£8000 loan amount, £359 costs, 15.72% annual flat rate, 120 payments of £138.57, total paid £16628.30, total interest £8628.30, APR 16.91%
That's how loan calculators see it.

Not any APR calculator you wont

[Guest]

Re: Swift Advances/Ocean finance

Basically you are confusing representative APR with actual interest payed. Different animals.

In any case the OPs agreement is compliant.

[meellis]

Re: Swift Advances/Ocean finance

Sorry Andy, I was under the impression that an APR was there only as a reference so the un-educated and unwashed dirty debtor could compare the true costs of loans after the tricks to make one product seem more desirable over another had been applied like up-front payments or payment holidays or low initial rates that might make the product look more affordable but actually more expensive over the full course. APR and AER are only representative comparison rates to illustrate how the nominal and how it is being applied affects the loan over the term.
I am not suggesting to the OP that the agreement is not compliant because I don't know but I am suggesting that the costs to set up the loan are somewhere and someone will be paying them and I would wager it wouldn't be the broker or Swift. Now if they are somewhere on the accounts but the payment schedule hasn't taken them into account then you could have been under paying for the whole term of the loan which would result in the loan note being completed in term. The only way of knowing this would be to get the relevant info which could only come from the broker or Swift because it isn't on the agreement.

[Guest]

Re: Swift Advances/Ocean finance

Your right that is exactly what it does this is the formula

http://www.legislation.gov.uk/uksi/2010/1011/made



The thing is what ever the theory is about swift or anyone else you can only hang them by what is on the contract, it is really no use in saying they must have done this or that, you have to be able to evidence it, otherwise we have nothing.

The contract signed here is compliant, simple as that, now if you expect them to produce something with an SAR which would show this agreement to be in some way none compliant, I think you are looking at a bit of a long shot.

[eire13]

Re: Swift Advances/Ocean finance

If I did a SAR to Ocean would they still have info from 2004?

[Guest]

Re: Swift Advances/Ocean finance

If I did a SAR to Ocean would they still have info from 2004?

They should retain documents for 5 years from the end of any contractual relationship to comply with money laundering regulations, this is usually the time frame which they quote, although I am not rely sure what it is you would expect to find to be honest.

As said there had to be fees for land registry etc but I would expect them just to say that they met them out of the profit in the loan(the interest), since there is nothing in the agreement to suggest anything else.

The repayments and the total amount you are repaying on your loan is all contained within the document on here so what else is there to look for?

Unless you made some additional payment.

[eire13]

Re: Swift Advances/Ocean finance

No I did not make any additional payment. I suppose I would be trying to find out if they were paid a broker fee from the higher interest rates on my loan and I was not told about this. Also making sure they made adequate checks about my affordability and suitability for this type of loan. I suppose I should put it down to a very bad mistake and forget about it.

[Guest]

Re: Swift Advances/Ocean finance

No I did not make any additional payment. I suppose I would be trying to find out if they were paid a broker fee from the higher interest rates on my loan and I was not told about this. Also making sure they made adequate checks about my affordability and suitability for this type of loan. I suppose I should put it down to a very bad mistake and forget about it.

Higher interest rate ? All the money under the agreement is accounted for in the agreement itself.

[Guest]

Re: Swift Advances/Ocean finance

Now if they are somewhere on the accounts but the payment schedule hasn't taken them into account then you could have been under paying for the whole term of the loan which would result in the loan note being completed in term. The only way of knowing this would be to get the relevant info which could only come from the broker or Swift because it isn't on the agreement.

Didn't re see this, not really sure again what is meant. The OP is only contracted to pay what is in the agreement, any other expenses are not down to him and why would he pay anything he is not contractually obliged to.

Again the APR stated on the loan has been checked using the total amount to be re-payed and the total credit, there are no other monies under the agreement, and the APR(and therefore the sums contained within the TCC and TC) is spot on.

[Guest]

Re: Swift Advances/Ocean finance

"If you go to any loan calculator that will work out the APR it will come back the same as the flat rate because there are no costs or charges to add" is the full quote.
£8000 loan amount, 0 costs, 15.72% annual flat rate (1.31%monthly), 120 payments of £132.62, total paid £15914.15 ,total interest £7914.15 APR 15.72%
£7660 loan amount, £340 costs, 15.72% annual flat rate, 120 payments of £132.62, total paid £15914.15, Total interest £8254.15 , APR 16.89%
£8000 loan amount, £359 costs, 15.72% annual flat rate, 120 payments of £138.57, total paid £16628.30, total interest £8628.30, APR 16.91%
That's how loan calculators see it.

Just looking at this.

There is a basic misconception here. The APR does not differentiate between the constituent parts of the TCC, it makes no difference if the elements of the charges consist of interest or fees or other conditional charges, all that matters is the total charge for credit.

Similarly it makes no difference if the creditor takes part of the sums charged as interest or whether they used it to pay fees, that is merely a matter for their accounting team, it has no effect on the debtor, as it is just a sum he has to pay to get the loan whatever it is used for.

The only time that the fees become of importance is if they are taken form the amount of credit (the money given to the debtor.

Also the issue of flat rate interest needs addressing. Flat rate interest is the term used when the amount of interest is calculated on the total sum borrowed at the beginning of the loan, this is not what APR is based on, APR works on the true value of the loan as it reduces throughout its term(as you pay it off), the APR value is usually about twice the(actual) flat rate value.

ie £100 re-payed over 12 months at 1% would give about £6.88 interest(flat rate 6.88/100=6.88%), however 12.68 APR.

[Guest]

Re: Swift Advances/Ocean finance

Anyway I will leave this thread now unless the OP requires further help

[meellis]

Re: Swift Advances/Ocean finance

What was meant was the OP still has a £5000 balance on their £8000 loan after the 120 month term is up in August. This balance has come from somewhere, almost two thirds of the original capital and still accruing interest so going on the existing scenario it will probably take them another 10 years to pay off. The OP has talked about late payments but I don't think they have mentioned arrears only charges so that is a lot of charges. Like you state they should only be contractually obliged to pay what is on the agreement so they need to find out what the £5000 balance is made of because, as you say you need to evidence it. I suggested that there might be the costs of setting up the loan that is on the accounts at Swift but have not been taken into account on the agreement. How much interest could accrue on say £350 over 10 years? There would have been costs in setting up this loan and Ocean do not work for free and swift did not incorporate the costs into the interest on my £60,000 loan so I couldn't see them doing it on a £8000 loan.

[Guest]

Re: Swift Advances/Ocean finance

The interest actually charged , will be charged on the reducing balance (in this case 1.3% per month) this may as you say continue after the contracted period (if the terms of the agreement allow it). But it makes no difference to the repayments, the amount charged regarding interest will just reflect the calculation of 1.3 % of the remaining balance on a continuing basis, the balance of the monthly payment coming off the principle. In exactly the same way as identified within the loan. All this makes no difference to the way the loan was set up initially.