My calculation, which is shown in a copy letter sent to Santander, based on the 5pc charge and its so-called administration fee, means Santander owes me £1,521.
Confusing isn't the word for how Santander conveyed the nuances of this loan.
First, the matter of the interest rate. In one of its letters Santander mentioned 5pc. This seems to have been a mistake – in fact the interest rate on the loan was 10.8pc. I suspect you really knew the 5pc rate to be wrong, but nevertheless, probably tongue-in-cheek, you took the 5pc rate and based on that worked out that you were owed more than £1,500.
In fact, £259 was outstanding on your loan – along with two £25 late payment fees, caused by the misunderstanding over the overdue payment. Because this hadn't been clarified in the earlier correspondence, as a gesture of goodwill, Santander waived the £50 in fees. You paid the remaining £259.
Even so, to me the figures did not add up. Then I found out that Santander had failed to detail a "back end" fee of £299 that was also reflected in your overall payment figure. The upshot is, though, that Santander does not owe you money.
