Abbey Loan Question...

RisingJoe

Ok, i have a loan with abbey (5500 over 12 months)

Question...

I have 1k in my current acount (all in a positive balance) and can afford ot knock it off of my loan.

with the previous loan i had i was told i was able to make extra monthly payments that would reduce my overall balance. but abbey have (about ten minutes ago) told me i am unable to.... i have made morethan the three payments required and surely me making a payment of 1k would help reduce my loan? and reduce the debt i have with them? so they would be in favour of it? theinterest i am paying is only £260 for theyear so i am less fussed about saving on interest, i just want ot clear my loan as quickly as possible....

are they leading me along? or is this really the case?

i have already asked ofr the tapes to be re listened to becasue i am 90% sure i asked and was told this was allowed. how will this affect me?

any ideas anyone?

CLAPTON

some loans are flexible (i.e. allow overpayments and no early settlement fees) and some aren't.
what do your T&Cs sat about overpayments?

naijapower

It is down to the terms and conditions on the loan. You need to review this to start with

simon_templar_2

You cannot overpay on an Abbey loan.

RisingJoe

Hi Simon, yes i have now been informed of that, however my argument with abbey is that the origional sales person who sold me the loan has told me that i am able to.

(if i cant then i will save it somewhere until i can repay it in one go but its the principle of being told rubbish)

anotherpaul_2

RisingJoe wrote: »

Hi Simon, yes i have now been informed of that, however my argument with abbey is that the origional sales person who sold me the loan has told me that i am able to.

If you were told that, you could raise a complaint with them, and they might eventually make an exception It's going to be difficult to prove unless you have it in writting though.

However, for the saving of interest you'll make, it might not be worth the hassle. (I probably wouldn't bother and would put the money in the highest interest (instant access or short notice) savings account I could find.)

Also, with such a short loan period and the 2 month interest that (almost certainly) gets added to the settlement amount, you may not gain anything by paying it early (nothing if you pay it off without the final two months of the loan).