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early loan repayment fee's

Hi, can anyone tell me why i am being charged £200 for settling a loan
early. I went into arrears and worked out that for £3500 i would be paying over £5000 interest over the next 3 years, and was getting very awkward phone calls, so now i have the opertunity to pay what i owe, but have an early redemption fee to pay aswell. I just can not win.:mad:

Comments

  • Tixy
    Tixy Posts: 31,455 Forumite
    You need to check your original loan agreement to see what it says about early settlement fees. Its usual that you'll be charged a small interest penalty for settling early. A £200 fee is surely better than the £5000 interest?
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
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