Alliance and Leicester wont let me overpay

ChrissieI

I have started snowballing to get rid of my debt. Overpaid on HFC loan.
No problems. Loan clear. Today I phoned the A&L to double my payments. I was told I could only change my payments if I borrowed more money from them. It seems I can pay off the balance in full or leave the payment as it is.
I will have to get around this by paying the extra money into a savings account until I have enough to clear the balance.
Can they stop me over paying. I said I would cancel the DD and set up a standing order at the bank doubling the payment. I was told if I did this they would take the agreed amount and each month return the extra to me.
Has anyone else had this happen to them?
I did say you are just encouraging people to get further into debt.
He said yes it does seem that way I'm sorry but its company policy. Has anyone else been told this?

mountainofdebt

for you to do in this circumstance would be to put the difference between what you want to pay and what A&L will 'accept' into a savings account (and you could set up an standing order for this so you know it's being done!) and once you have sufficent, pay the whole loan off.

MarkyMarkD

If you want to overpay in those circumstances, you could reschedule the term of the debt.

You would probably have to borrow a little more (but it only need be a little more) and then set the term to match the payments you want to make.

Personal loans are almost always fixed term, fixed payment arrangements and the only way to overpay is to pay the loan off in full, or to reschedule as I suggest above.

crawley_girl

I had the same issue with Barclays. Both Loan and Current Account. I have online banking with them but am unable to pay extra from the Current Account into Loan Account. I got around this by setting up a standing order from my LTSB account straight into the Barclays Loan Account. No-one has come chasing me - could you do something like this?

:heartpuls CG :heartpuls