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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Due to bad credit I Had been accepted through Zuto Auto

Resolved Question:

Hi,
Due to bad credit I Had been accepted through Zuto Auto Finance who have allowed me to purchase a vehicle. They are like an intermidary servce where they help you find finamce for a vehicle. Zuto has given my car finance through a company called money way.
The advisor at zuto explained to me after asking that I could make early repayments and overall reduce my interest and terms. However after signing the credit agreement and speaking with money way I can only reduce my monthly installments but my interest will always remain. I can make overpayments or partial payments which after giving notice and paying to moneyway s calculated each month.
I would like to know if there is a waty where I can reduce my interest by paying overpayments and If I have any rights.
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you.
Yes. The Consumer Credit Act 1974 allows that if you make amendments then the interest must be recalculated on your actual outstanding balance. So they SHOULD charge you less interest for overpayments.
If they do not then you can complain Financial Conduct Authority who can investigate. Their website is:
https://www.fca.org.uk/firms/firm-types/consumer-credit
Can I clarify anything for you about this today please?
Alex
Ash and other Law Specialists are ready to help you
Customer: replied 2 years ago.

Money way told me that I can make overpayments or partial payments. This will not reduce the over all interest I am paying. Could you please quote me the consumer credit so I may write to money way. Moreover the credit agreement I have signed through money does say this too. I still have 14 days to cancel.

Expert:  Ash replied 2 years ago.
It was in the amendments under the Consumer Credit Directive which amended the 1974 Act.
Please see:
http://www.choose.net/money/guide/faqs/right-make-personal-loan-repayments.html
Does that help?
Alex
Expert:  Ash replied 2 years ago.
Hi

I am just following up to see if there is anything else I can help with?

If this answers your question might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.

If you need more help please click reply.

Alex