In February 2010 I was advised by home improvement company Everest to take out a loan through Barclays Partner Finance for its maximum period, even though I was in a position to – and wanted to – make full payment of the sums which were outstanding. I was persuaded on the basis that, after six months, I would receive a cashback sum that would immediately more than compensate me for any interest paid.
I did not receive the cashback after six months but, after some chasing, received it in February 2011. When I recently asked for a statement concerning the redemption, I was dismayed to discover the interest charges over the period significantly outweigh the amount of capital advanced. The interest rate is being charged at 24.7%, and I have racked up £652 of interest. Also, if I wanted to redeem the loan at this stage, it appears there would be significant penalties. In a
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