early settlement no rebate???

Jesterowl

I took out a secured loan for £25,000 over 10 years back in October 2004 (10.9%APR) and am now in a position to pay it off so asked for a settlement figure from GE money.
Here are the figures i received

Balance outstanding as at 5/1/10 ...........................£19512.08
add interest to settlement date.................................£232.75
Add early settlement fee..........................................£217.10
Add fee for discharge of security.............................£150.00

total amount payable by borrower .........................£20,112.23

"you may settle early at any time by paying he balance outstanding up to the settlement date plus an early settlement fee and a fee for discharge of the security. The early settlement fee is equivalent to one months interest on the outstanding balance on the day before the early settlement date . The total amount payable on early settlement will not exceed thet permitted by the Consumer credit (early settlemnt) regs 2004. for this reason you will not be entitled to any rebate under the agreement or by virtue of section 95 of the CCa 1974 if early settlement takes place on or before the settlement date. Any references in your agreement to the Consumer credit (rebate on early settlement) regulations 1983 no longer apply"

i can find no reference to the fee for discharge of security on my loan agreement and the only reference to an early settlement fee i can find is if i pay the loan off within the 5 year fixed rate period (ended October 2009)

i have searched online for any reference to "section 95" where it says i am not entitled to an interest rebate but all i can see is that if i pay a loan off early i AM entitled to a rebate.

Do i have anyway to fight this as it just seems wrong that i pay off a loan nearly 5 years early but still pay all the interest or am i missing something.

there are a few late payments on the account but none missed which obviously attracted default charges (not complaining about them as they weren't that bad something like £12 per letter they sent)

Tubbss

Hi,

The chances are that this loan incurs interest monthly, if so, you would not get a rebate on the interest for early settlement, as interest for the future would be added monthly.

Robert_Sterling

I think Tubbss is right.

You benefit from the fact that you will not be paying any interest on the loan in the future.

Jesterowl

correct!!!!!!!!!!


just re-read the agreement ...........oops

CLAPTON

how many payments have you made?
were there any payment free months at the beginning of the loan?
any PPI?