Lloyds TSB loan

carli63

Hello, can anyone help me i have two loans with Lloyds TSB that i have requested a quotation to pay the loans off early which i have now received but i have been asked to pay an Early Settlement Fee on both of these loans. I thought that they can't charge me for paying the loans off early, am i wrong or right.

Tixy

What does the original agreement say with regards to early settlement?

Not an area I know lots about but I think they can charge in some circumstances.

Based on the figures could the amount they are charging could it be one months interest? they are certainly allowed to charge that. If its much more than that then probably look through the terms of the agreement.

BLT_2

carli63 wrote: »

Hello, can anyone help me i have two loans with Lloyds TSB that i have requested a quotation to pay the loans off early which i have now received but i have been asked to pay an Early Settlement Fee on both of these loans. I thought that they can't charge me for paying the loans off early, am i wrong or right.

The standard charge is one months interest on the amount outstanding at time the loan is repaid. Great if you owe 1,000 (as it is based on annual interest rate/12. However pretty crap if you 30k :-)

carli63

Thanks for that, i least i don't feel so bad now. if it has to be paid it has to be paid.

jonesMUFCforever

Actually it is 56 days interest for LTSB loans.

chase1080

You can avoid paying the early settlement charge by doing an overpayment which is penalty free and leaving at least 1 payment remaining. That way you only get charged the 56 days interest on the last payment.

I did this a few months ago

Had £3180 remaining on loan. paid off £3000 as an overpayment, then let the last direct debit go out.

Hope this helps