Pay off Alliance & Leicester loan early

hammer69

Hi All,

Was hoping that you could advise me.

My wife and I are in the fortunate position of being able to pay off a loan that we took out a few years ago. We spoke to the Alliance and Leicester today and they state that we have 12 months left of a 48 month contract where we borrowed £10,000 at £238 per month, which was a total agreement of £11,434.

Anyhow, they say that to redeem the loan early, and the fact that we're past the 3/4 mark then we have to pay £277 per £1000 originally borrowed (any earlier and it was even more!!); so with roughly £2800 left to pay they say that to settle early we have to pay the £2800 + £2770 which is absolutely ridiculous!!!

I cannot believe that what we they are saying is that it will cost us practically double the amount outstanding to redeem the loan. Any help or advice here so that we can settle early would be very gratefully received.

Cheers

Ady ......

CLAPTON

no you don't add the two numbers together

what they should be saying that your settlement figure after three years (i.e 3/4 of the loan period ) will be 277 x 10 = 2770.... that is all

check again with them and ask for a written settlement figure.

It should be clearly stated in your original loan agreement.

hammer69

Hi,

That is what I thought, but, they specifically stated that it was circa £5500 to redeem now. Do you think I just had someone on the other end of the line who was not sure then?

Ady .....

Gorgeous_George

Ring again and ask for redemption figure.

I think you should pay £2,755.23 or thereabouts.

GG