We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
New Consumer Credit Act Early Repayment Rule?
Options
Hi, I wonder if someone can help. I am looking to repay my personal loan early, when I originally took it out I asked what the penalties were for paying early and was told max of 3 months interest... of course when it comes to me requesting a repayment figure it appears that it is in fact the Rule of 78 that will determine my early repayment penalty (yes, kicking myself for not being more clued up at the time to realise this!!).
Anyway, I understand that under the new consumer credit act there is a new calculation for early repayment charges which my loan will fall under on 31st May 2007 and am now trying to work out if it is in my interest to wait until then to repay the loan in full.
I have read somewhere that it is a maximum of 2 months interest and somewhere else shows an equation which I really can't make head nor tail of!
Can anyone help to give me a simply explanation of how the new early repyament charges are calculated?!
Sorry his ended up being a long one and I hope I made sense! Thanks!
Nat
Anyway, I understand that under the new consumer credit act there is a new calculation for early repayment charges which my loan will fall under on 31st May 2007 and am now trying to work out if it is in my interest to wait until then to repay the loan in full.
I have read somewhere that it is a maximum of 2 months interest and somewhere else shows an equation which I really can't make head nor tail of!
Can anyone help to give me a simply explanation of how the new early repyament charges are calculated?!
Sorry his ended up being a long one and I hope I made sense! Thanks!
Nat
I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 350.9K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.9K Work, Benefits & Business
- 598.8K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards