Egg loan with 1 year left

rolo-polo1965

Emailed them asking for a redemption figure on 18th march.

Got this reply on 20th march

The settlement figure on your Egg Loan is £2048.23

Strange i thought as according to their website i owed £2037.39.

So if i pay it off early i have to pay more, so i asked them .

They replied:
You'll be pleased to know that the interest on an Egg Loan is accrued on a daily basis but added to your account monthly, so you only pay interest on the Egg Loan while you have a balance with us.

The reason that the settlement figure is higher is because the balance that you can see online is after the last payment 5 March 2009. It doesn't include any accruing interest.

When we give a settlement figure we have to include 10 days worth of interest to ensure that the payment you send will be enough to settle the balance when we receive it.

I trust this helps but if you have any other queries please don't hesitate to reply to this message.

I think i will not pay it off early, i am trying to clear my debts after splitting up from my husband last November.

Do you think i should argue with them or not.

Thanks

jonesMUFCforever

IMO they are right.
The balance you see is the ledger balance and interest will accrue on that balance until you pay it off.

CLAPTON

It seems very reasonable
Under the CCA rules they can charge you up to two months interest as an early settlement charge.

Rafter

CLAPTON wrote: »

It seems very reasonable
Under the CCA rules they can charge you up to two months interest as an early settlement charge.

Egg loans were generally flexible - ie no interest penalty or early settlement charges.

Agree with the others - seems totally reasonable that they charge you up to the day you repay rather than when they last added interest to the statement - this would be totally usual.

R.