Early repayment fees - Can I get around them?

pittswim

I recently took out a loan with Santander at 12.9% (gulp!) and was then offered the full amount by a family member.

I would like to repay the amount in full, but there is a penalty of 1% in the fine print (amounts to about a £300 fee).

However, knowing full well that this was part of the TCs I asked a loan representative 3 times categorically - "Is there ANY fee or penalty for paying the loan off early and in full?" And was told all three times that there isn't.

I know there's little chance, but I'm so unhappy with Santander on the whole (I'm closing my current account with them today after a botched savings application on their part) I wouldn't mind not having to pay this fee.

Any way out of it?

jonesMUFCforever

Yes - pay the balance of the loan off but leave the last payment to go through by direct debit.
It works with most banks.

andy.m_2

Add your ame to the lendign money to family thread afterwards.
Hey at least you get away with having the money and not repaying it

Honestly, I would stick with the loan from the bank for all number of reasons.