Are Loan early settlement fees reclaimable?

BigCraigJohn

Just wondered. I have recieved all my loan statements as a start to my SAR request.
In 2002 I had a Lloyds loan which was topped up. At the time I presumed I was just borrowing more cash where infact they used a new loan to pay off the old loan and charged me an early settlement fee of £130, ofcourse they also didnt refund the ppi but i'm trying to reclaim that :mad: the cheek of it though.

Any grounds here to complain and try and reclaim. Certainly an unfair fee imo just not sure where I stand.

dunstonh

Any grounds here to complain and try and reclaim.

Cant see how as Lloyds have never offered top up loans. So, they are not doing anything wrong.

Certainly an unfair fee imo just not sure where I stand.

Are you saying that the fee was not in the published terms and they just added it willy nilly?

BigCraigJohn

dunstonh wrote: »

Cant see how as Lloyds have never offered top up loans. So, they are not doing anything wrong.



Are you saying that the fee was not in the published terms and they just added it willy nilly?

I'm saying the manager got me in for an annual meeting, said along the lines of we can give you £5 grand more so you can pay off all your debts and pay as 1, it'll be £40 on your payment. Nothing changes just sign here.
Did not tell me there would be a fee and did not tell me I was taking out a new loan.


I guess my point is it seems excessive considering its not moving banks and they are making more off me in interest anyway.

I was 21 at the time and some what naive, t&c?, what were they. I trusted this bloke who was offering me money and giving me coffee.

dunstonh

I trusted this bloke who was offering me money and giving me coffee.

You havent been able to trust the banks for "advice" since the early 90s when the whole focus went sales.

Based on what you have clarified then you may well have a case to raise a complaint to Lloyds as it was them who suggested the change. However, be aware, that a course of action that incurs charges is still acceptable if its in your best interests. i.e. taking a step back to take two forward. For example, if it cost you £130 to change the loan but you saved £700 overall then its justifiable.

natweststaffmember

The answer is no BigJohn.

BigCraigJohn

dunstonh wrote: »

You havent been able to trust the banks for "advice" since the early 90s when the whole focus went sales.

Based on what you have clarified then you may well have a case to raise a complaint to Lloyds as it was them who suggested the change. However, be aware, that a course of action that incurs charges is still acceptable if its in your best interests. i.e. taking a step back to take two forward. For example, if it cost you £130 to change the loan but you saved £700 overall then its justifiable.

No chance, I didnt get any refund on the ppi and the balance transfered to the new loan was higher that the original amount borrowed. This happened after 10 months of taking the original loan.
They sold me a new ppi policy the next day on the whole balance. Then the same 15 months later, and again 11 months later again.
Ive not worked it out and cant be sure but I imagine I would of been better off on all occasions taking a new loan for the added amount over 50 months(the term of all the loans).

Almost like I had a "sucker" mark by my name. But no more

Well fingers crossed on the ppi claim.

Thanks for your above advice anyway.