GE Money - Interest Charging when paying off...

MGSteve

Hi, I'm about to pay off a GE Money loan I took out a while back for myself and my wife's wedding.

Now, they've turned round to us and and said that the redemption figure they quoted was valid up to 22nd of November. The thing is, the first figure we had was lower than the latest figure! Turns out they're charging me interest for November as well, even though I'll pay it off before Novemeber!

Is this legal? Can they charge me interest for a period where I don't actually have any debt with them?

They say its in the T&Cs, but even my IFA didn't see them so what chance have I got!

I'm already paying them 1 month's interest as an early redemption fee, but effectivly, I'm paying them twice.

Any advice would be appreciated, as its now holding up the remortgage.

silvercar

I guess a redemption figure valid to 22 November would include November's interest. Then you have to add on the one month's interest redemption charge.

Watching how you get on with interest, as I also have a GE money loan that I intend to redeem shortly.

I worked out that the cheapest way is to pay a lump sum off the loan just before redeeming it, as lump sum repayments don't attract the one month's interest charge. This should leave me with a small amount remaining that I will need to pay the one month's interest redemption charge on.

MGSteve

Just spoken to GE, you still get hit for the penalty interest on a lump sum payment

silvercar

MGSteve wrote:

Just spoken to GE, you still get hit for the penalty interest on a lump sum payment

That's not what they said when I took out the loan. I asked if lump sum repayments carried any penalty and they said it was only when you redeemed the loan that there was a penalty.

silvercar

checked my terms and conditions. the one months interest is charged on the balance outstanding the day before settlement!

petermb_2

I may be able to assist you.

Is this a secured or unsecured loan?
and when did you take it out?
Was it through a broker?

Grabbit_2

I got into a similar arguement with them today. They completed the loan on the 20th and I cancelled it today. They want to charge nearly 2 months interest rather than 1 as the T&C state. Their position was that they don't have to put in the T&C that they will effect the redemption a month after receiving written notice AND THEN add a months further interest. They claim it is usual practice and perfectly legit according to the CCA. I told them I would make a final payment today including 1 months interest as per the T&C and we would put the difference into dispute. They said they couldn't accept the payment as it was not the redemption figure on their computer. They said they would not freeze the account either.

So I am absolutely disgusted at them making up T&C's and refusing to put me onto someone who could get their system to calculate interest according to their T&C's.

I think we are both experiencing the same double interest charging effect.
Ideas anyone ?