Loan mislead!!!

[Deleted User]

Hang on a moment here.

I can sympathise with the original borrower's position and I don't think it's particularly fair to be so critical.

My bank - Barclays - and I'm sure a lot of other banks - do advertise to customers the ability to change the payment schedule and it's not at all obvious that in doing so they are cancelling one loan and taking out another. When I took out my graduate loan I was told that I could change the amount I paid on it...but their language all suggested that it's just a rejigging of the existing loan, when in fact it's exactly as you said: a replacement loan for the old one.

So, yes, although the OP was a bit silly in not checking, I do think that the banks are slightly misleading in how they promote the ability to increase/decrease the amount you pay on your loan each month.