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Early Settlement Rebate/Full & Final Setlement
Took out a £12000 loan over 7 years with what I think the industry call a 2nd tier money lender (now part of HSBC) in July 2003. They also sold me PPP and promptly added another £4k to the loan. Total cost £32k. I know - mad but circumanstances were not letting me think straight!! However I was told that on top of the regular monthly payments, I could also pay additional amounts to help reduce the interest and shorten the life of the loan. Also I could repay early.
This sounded pretty good as I did not want to commit to the loan for the whole 7 years and thought of the loan as something similar to a credit card without the abilty to buy things. Anyhow I paid around £4k extra in the first 9 months, put some figues into Excel a few years later to try and forecast an early end date and came up with a finish of mid 2007, some 3 years early. I was expecting the balance to be around £5/6k. Now due to a change in circumstances, I can no longer service the loan, and asked for a settlement figure. I was told that the balance was £15k, so I've effectively paid £17k, but the settlement figure is £9.7k. PROBLEM. I cannot afford any more monthly repays, but can use my rainy day savings which is about £4k, and a friend has offered to lend me £2.5k.
What is the likelihood of the lender accepting this £6.5 against £9.7. Anyone got any experience/suggestions. Many thanks
This sounded pretty good as I did not want to commit to the loan for the whole 7 years and thought of the loan as something similar to a credit card without the abilty to buy things. Anyhow I paid around £4k extra in the first 9 months, put some figues into Excel a few years later to try and forecast an early end date and came up with a finish of mid 2007, some 3 years early. I was expecting the balance to be around £5/6k. Now due to a change in circumstances, I can no longer service the loan, and asked for a settlement figure. I was told that the balance was £15k, so I've effectively paid £17k, but the settlement figure is £9.7k. PROBLEM. I cannot afford any more monthly repays, but can use my rainy day savings which is about £4k, and a friend has offered to lend me £2.5k.
What is the likelihood of the lender accepting this £6.5 against £9.7. Anyone got any experience/suggestions. Many thanks
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Comments
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Can't believe that after 24 viewings, nobody can offer any suggestions. Please try. Thanks0
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Is this HFC we're talking about?0
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Spot on! Do you know something I don't.0
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PM sent emjel0
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