Credit Law & Early Settlement Fee

marlise

Hi all,
A friend has advised that the Credit Law recently changed in respect to Early Settlement Fees & that ever since this came into effect, one can not be charged/penalised for settling a loan early.

Is this correct? And if so, when did this come into effect (I was told earlier this year -2011).

Thanks so much for your help!

Tixy

For new loans taken out since Feb (feb I think). They can still impose an interest cost for settling early - will find a link for you......

http://www.moneysavingexpert.com/news/cards/2011/02/the-credit-card-and-loan-shake-up-what-it-means-for-you
One months interest can still be charged for full settlement. For partial overpayment the rules have changed.

CLAPTON

the rules changed in 2007 so that the early settlement charge could be no more than about 2 months intererst

there was a further change this year so that part payments (i.e overpayments ) were allowed and followed the same rules as for early settlement

marlise

Thx SO much Tixy & Clapton! u guys r a blessing!
:T