additional payments by DD to existing loan

Shemaz

Hi

I currently have a personal loan with the Bank of Scotland and my fiance is offering to make additional payments by direct debit. The loan company is refusing to allow this form of payment, saying that they will only take cheques. Does anyone know of a company that will allow for additional payments from another direct debit source?

jonesMUFCforever

Most banks take loan repayments by direct debit so it is for a fixed monthly repayment.
Have you asked at a Bank of Scotland branch whether they have the facility to accept overpayments over the counter (manually) - if they do you could go in with cash if getting a cheque is a problem.
If not the only way round it as I see it is to buy a Postal Order which for all intentions these days is a cheque.

Laurenbelle

They may not be able to set up a Direct Debit but you could probably set up a standing order from your account into your loan account. I know Halifax Loans will allow that, not sure if BOS are different.

regularsaver1

Bank of Scotland are different - especially finance loans

but I'm sure they can't say no to the standing order, if you find out the sort code and account number

BONJOEY

if you made overpayments would this lower your final cost i.e reducing the amount of apr, or just finishing paying it ealier han the inended term?

Shemaz

it would just allow me to pay off the loan earlier.