Urgent query regarding "early settlement"

LadBroke

Hi ya !

I have taken a loan from "Everyday Loans" in Hounslow, back in February 2011.

I have now enough funds and am looking to settle the loan early but the company have so far not responded to my e-mail enquiry about an "Early Settlement Qoute". I have also called them to ask, they have claimed not to have received the e-mail and that they would get back to me with a letter, apparently they are unable to provide a qoute right away (which I find rather strange as friends have told me that any high street bank could provide an early settlement qoute right away when they had asked !).


My questions are whether

• they are entitled to more or less "decline" an "early settlement arrangement" (when the contract clearly allows for it) ?
• I should cancel the direct debit today as the next monthly repayment is due on this Wednesday, January 25th as I would rather pay off the remaining amount in full ?

It seems strange that in these times of economic uncertainty and when the number of people declaring bankruptcy is rising a lender is not keen on getting their money back - but that seems to be the situation I am in ?

Any advice would be greatly appreciated...

mcs1977

I'm not sure whether they can refuse an early settlement, but if it says in the documents that you can then I'd guess they should accept it

As for not paying the DD this month just to get their attention that would do harm to your credit rating so isn't advisable. Why not try posting them a letter recorded delivery, that way they can't den receiving it, and give them an offer to settle, maybe putting the clause number that mentions early settlement in the paperwork.

Good luck :0)

Apples2

Put it all in writing, stop with the emails and phone calls.

Write to them requesting an early settlement figure so you have some documented proof.

Under NO circumstances should you stop the DD, it will hit you hard for the next 6yrs.

LadBroke wrote: »

It seems strange that in these times of economic uncertainty and when the number of people declaring bankruptcy is rising a lender is not keen on getting their money back - but that seems to be the situation I am in ?

Ask yourself which option they stand to make most money out of you, by settling now or letting it run it's course.

LadBroke

Apples2 wrote: »

Ask yourself which option they stand to make most money out of you, by settling now or letting it run it's course.

The latter is exactly my point: Obviously they would earn more should I continue to pay the loan off on a regular basis. As I have already stated my desire to "settle early" would I as a customer
not be entitled to cancel the direct debit payment so that they don't take more money than they should ?

Well, I have just spoken to them and requested an "Early Settlement" over the phone, for some reason they refuse to send such a document over the phone, in fact, the guy asked me why I would want to have such a document in writing :mad: Very dodgy indeed and once I've settled it, I will be happy not having to deal with them anymore !

mcs1977

Because they've not given you an early settlement figure you must continue to pay them what you agreed, you signed a contract with them to pay £xxx for xx months so should keep to that agreement. If you don't you'll get a default on your credit file regardless whether you have the money to pay or not which will take 6 years to get erased. As has been said before write to them (recorded delivery) and ask for the figure, its best to get figures etc in black and white then they can't change their mind after you've paid and decide they want a larger settlement.

LadBroke

mcs1977 wrote: »

As has been said before write to them (recorded delivery) and ask for the figure, its best to get figures etc in black and white then they can't change their mind after you've paid and decide they want a larger settlement.

Will do that tomorrow !

But I can see them biding their time with this, is there a timeframe within which they have to respond ?

somethingcorporate

The only difference between settling early before and settling after your next payment date is the tiny amount of interest that your debt would have accrued in the days between the two as obviously the early repayment amount would be reduced by your monthly payment - there really is no point in cancelling the DD, it would only harm yourself.

LadBroke

somethingcorporate wrote: »

The only difference between settling early before and settling after your next payment date is the tiny amount of interest that your debt would have accrued in the days between the two as obviously the early repayment amount would be reduced by your monthly payment - there really is no point in cancelling the DD, it would only harm yourself.

The only reason why I considered cancelling the "Direct Debit" was that a further instalment will be taken tomorrow and I would have loved to save that money.

Going back to my previous post: I will request an "Early Settlement Qoute" tomorrow for the third time but this time by Special Delivery. Is there a time limit within which they have to respond to my request or can they bide their (and my) time ?

laidbackgjr

You really need to read the T&C's that were issued with your loan, they should include details of how you make an early settlement. By making the direct debit tomorrow, you will be reducing the early settlement amount by the same amount, so you wouldn't be saving if you didn't pay it as your early settlement amount would increase if you didn't pay it. Also some loan T&C's don't allow early settlements once you have missed a payment.

somethingcorporate

LadBroke wrote: »

The only reason why I considered cancelling the "Direct Debit" was that a further instalment will be taken tomorrow and I would have loved to save that money.

Going back to my previous post: I will request an "Early Settlement Qoute" tomorrow for the third time but this time by Special Delivery. Is there a time limit within which they have to respond to my request or can they bide their (and my) time ?

You wouldn't save that money either way - if you settled before the payment date then the settlement figure would be higher. If you paid after it would be lower (as you had an additional repayment). The only slight difference is the tiny amount of interest the debt accrued on the payment value in the mean time.

I don't think that there is any time limit in which they can respond. The only money it is costing you is the interest - which on a per day basis I am guessing is quite a small amount.

No excuse for slack customer service though! Keep everything in writing from now on.

Skintski

You're not the only one struggling to get information out of Everyday Loans. My boyfriend changed his address last summer after taking out a loan with them. Since early December we have phoned 3 times to request the information on his loan be popped in the post as his seem to have disappeared in the move. We still have no sign of documentation. I'm now going to write to them.

Good luck with yours.