Loan 'admin fee'

skinnirib

Hi everyone

I've just paid off a loan 4 years early with LLoydsTSB and was charged a £250 'admin fee' for early settlement. Can I try and claim this back saying it doesn't reflect the true cost of settling the loan (I've had recent success of claiming back a mortgage admin fee with Egg using Martin's download letter).
Is this the same sort of thing or am I being too optimistic?

Thanks

Rafter

If the £250 was clearly stated in the original agreeement you signed then you don't really have a case.

This isn't a penalty as such - just a cost associated with early settlement. It may not just be their admin costs if it is a fixed rate loan and Lloyds have taken out an insurance policy themselves to cover the risk that interest rates will rise.

R.

skinnirib

Thanks Rafter - looks like I'll have to let this one go.

Astaroth

It is a small cost compared to the true cost of settling the loan early which is the loss of interest over the agreed life of the loan.

As Rafter says, costs only have to be reflective on charges for breach of contract. This is not a breach of contract but a service they offer and as such they can charge as much as they want as long as it was outlined in the T&Cs you signed up to (or that you were notified to the condition in line with the original T&Cs rules for changes)