Early repayment discount with RBS?

psychiedave

Dear all,

I have a £4k loan with Natwest, and I have managed to come up with some funds to repay it. I've heard rumours somewhere that because the banks need cash at the moment then they are often willing to know a bit off the top in order to get the cash back quick.

Has anyone tried this before?

Cheers,

Dave

Hax

The only time a bank will accept a reduced settlement is if you have demonstrated that you are in financial hardship - that normally involves missing payments, trashing your credit record for at least six years, your account being passed to debt collectors and the constant harassment and threats of court action by post/telephone.

EDIT: If you have a loan agreement that allows early settlement, there's normally a penalty of a month or two of interest - you would, however, save the "future" interest which wouldn't be charged.

jonesMUFCforever

Most loans these days charge daily interest so there is no refund for early closure.

What you have heard is total tosh by the way.

Hax

Sorry - I was meaning that they would save the future interest compared to them carrying on with their "normal" monthly payments.