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Loan Interest
numanor
Posts: 4 Newbie
Hi All
I am new to this forum so sorry if I mess this up, but here goes. I have an endowment policy which in 1996 I had taken a loan of £4k against the policy.I had not paid any interest on it ,as I thought I would let it roll on and I would pay it off when the policy matured, which is in 2013.
Recently I had a letter from the provider charging me £11k INTEREST , so in effect £4k is going to cost me £15k. Surely this cannot be right. Can anyone please advise me on my rights regarding this. And if there is anything I can do to challenge their ridiculous interest charges.
I am sick to my stomach at the thought of having to pay £11k interest. Please anybody HELP!!!!!!!!!!!
I am new to this forum so sorry if I mess this up, but here goes. I have an endowment policy which in 1996 I had taken a loan of £4k against the policy.I had not paid any interest on it ,as I thought I would let it roll on and I would pay it off when the policy matured, which is in 2013.
Recently I had a letter from the provider charging me £11k INTEREST , so in effect £4k is going to cost me £15k. Surely this cannot be right. Can anyone please advise me on my rights regarding this. And if there is anything I can do to challenge their ridiculous interest charges.
I am sick to my stomach at the thought of having to pay £11k interest. Please anybody HELP!!!!!!!!!!!
0
Comments
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You need to check your documentation around the endowment - I worked at one insurer and the interest rates on these 'policy loans' were exhorbitant, but were indeed set out in the T&Cs applicable. This always used to be the case but it may be that the FSA has restricted the rate of interest chargeable on these loans, so it may be worth checking eg with the CAB.0
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