Natwest loan

honey783

Hello,

I have a £4900 Graduate loan outstanding with Natwest I'm hoping to get it paid off at the end of this week! I called to get a settlement figure and was told I would not have a rebate of interest and would have to pay 2 months worth of interest as a penalty charge for paying it off early (was taken out Feb 2009 3 year term)which takes the loan to £5100. Is this right? I questioned it and they insisted that there is no chance of me getting any money back! and I will have to pay two months worth of interest and all loans are like that now?

Any advice gladly welcomed

Thanks

ukbill69

If its in the original terms you signed up with then there is nothing you can do. I think its fare, you did sign up for the full term and they will loose out.

honey783

Hi thanks for your reply but I was looking for more advice not opinion ...I feel this isn't fair I have a chance to get out of debt and make a fresh start I am one of the very lucky few at the moment. The fat cats at the banks can penalise you for repaying something early? they've charged me enough over the years it's time the banks put greed aside and started doing the right thing by helping people get back on their feet not causing more misery.

debthelp100830

brilliant- i want a loan for short-term. i cant get it. you want to payoff early, you cant pay off w/o penalty.

same natwest bank- joke.

Savvy_Spender_South

honey783 wrote: »

Hi thanks for your reply but I was looking for more advice not opinion ...I feel this isn't fair I have a chance to get out of debt and make a fresh start I am one of the very lucky few at the moment. The fat cats at the banks can penalise you for repaying something early? they've charged me enough over the years it's time the banks put greed aside and started doing the right thing by helping people get back on their feet not causing more misery.

The reality here is you are reneging on a fixed contract. you agreed to pay RBS an amount for the provision of money when you needed it. you are now in a better position so want to take that deal off the table. RBS on the other hand are not denying you an oportunity to cut them off, but charge 56 days interest as a deal ender. this is covered in the T&C of your loan agreement at the time of signing.

It would be unfair if they refused you the right to settle early really. if the shoe was on the other foot, and they ended the loan and said we have changed our minds, we need the money back so please send us *** and we will credit you 56 days interest, you would say they cannot force you out of the original contract no?

My comments may not please you but it should highlight the reality of ending finance early, i am on your side, just think of the many more months you are going to save through your good work!

zppp

Why do they do it?

Because the Consumer Credit Act allows them 2 months, and by the way it is not only Natwest I think you'll find...

Twister84

debthelp100830 wrote: »

brilliant- i want a loan for short-term. i cant get it. you want to payoff early, you cant pay off w/o penalty.

same natwest bank- joke.

With all due and respect, you are in a completely different situation to the OP.


It may well be the same bank, but you are a different customer & with different circumstances.