Overpayment Loan - LLoydstsb

chase1080

Hi all

just wandering if i could get some help.

Basically, i want to pay off my loan early as i have 18 months remaning.

The way i wanted to do it was to do an overpayment, leaving 1 payment to avoid the early settlement fee.

I rang up lloydstsb who confirmed there is no charge for over paying, so i confirmed to the advisor i would like to pay off the loan leaving 1 payment, the advisor asked me if i was doing this to avoid the penalty, i confirmed yes, he replied that lloydstsb will be able to go in after and still take the penalty fee out of my account.

Is this right?

Kind Regards

Michael

sscott5581

chase1080 wrote: »

Hi all

just wandering if i could get some help.

Basically, i want to pay off my loan early as i have 18 months remaning.

The way i wanted to do it was to do an overpayment, leaving 1 payment to avoid the early settlement fee.

I rang up lloydstsb who confirmed there is no charge for over paying, so i confirmed to the advisor i would like to pay off the loan leaving 1 payment, the advisor asked me if i was doing this to avoid the penalty, i confirmed yes, he replied that lloydstsb will be able to go in after and still take the penalty fee out of my account.

Is this right?

Kind Regards

Michael

My partner did this and was not charged the settlement fee.

She made a payment and left slightly less than the direct debit amount, the direct debit came out put the loan in credit and Lloyds refunded the overpayment back after she phoned them.

Xbigman

I've just done this with 2 Lloyds loans. Leave one and a half payments outstanding not just one payment. On both my loans they wrote to me half way through the second month confirming the final payment. There were no settlement fees.

One thing. Don't EVER go in and tell them you're going to do it. What you are doing is not illegal and it is within their terms and conditions, but they can muck you about and its tedious to argue with muppets in banks.
Regards



X

chase1080

Thanks for the replys, im just gonna do it via a standing order, that way i dont have to speak to anyone.

Thanks for your help

mike

jonesMUFCforever

Just go into a branch they will not question it and to answer your question - NO they cannot go back into your account and collect an ESF.

chase1080

Need some more help regarding above query.

Basically, i had around £3045.00 minus the interest.

I did a standing order overpayment of
2800.00 bringing the loan balance down to £245

Then a few days later the normal direct debit amount out of my account which is £185 but for some reason the loan balance went up to £285, when i believe it should of brought the balance down to about £60.

Any ideas if the bank have made an error or have tried adding on the early settlement fee? And what my next course of action should be

Thanks

Michael

jonesMUFCforever

Have you considered the daily interest charge which is debited to the loan monthly?
Seems pretty normal to me.