Secured Loan Interest Settlement issue

Grinch_2

Guys, my first post, so was not sure whether my question should be here as it is a secured loan or in the loans section.

I am looking at remortgaging and repaying a secured loan through First Plus.

I have just had the settlement figure through and is around £2k more than I originally borrowed 5 yrs ago!

Having questioned it, I am referred to part of the (very) small print which states that basically I was obliged to pay at least 10yrs of interest (under the rule of 78 from the Consumer Credit (Rebate on Early Settlement) Regulations 1983.

This was never disclosed to me (appreciate that it is on the agreement), and have been looking at whether there is any way that I can pressure First Plus to not charge it.

It would appear that the act mentioned above has now been superceded to remove this allowance, but does not come into force for my loan until 2010.

I have been searching about unfair bank charges, and this to me is also "unfair", but cannot find any help on it.

So, question is, has anybody got any experience of this issue and any advice on what to do next? My thoughts are to write to First Plus and say I think it is unfair and that in view of the revised legislation I would ask them not to charge.

Thanks in advance.
Matt

peejbob

i'm looking into this too but with no luck so far apart from the possibility of re-mortgaging with the same company to be under the new credit laws then repayin that off early. The only problem may be that they will work out the settlement charge at the going rate to re-mortgage. It's a shame the new law allowed long term expensive loans to be capped in the year 2010 when all the cheaper ones ended in 2007.

Grinch_2

Still not getting anywhere. I've complained a couple of times, but got nowhere. I have spoken with the OFT and FSA and both are interested in it. Think I will carry on with remortgage and write to FSA, OFT and the Ombudsman and see what happens.