LTSB Personal Loan - early settlement charge query

ChickenStevens

My partner and I have a loan each with lloyds that we would like to settle.

We've received settlement figures for both loans which are both higher than the balance outstanding. When asking what the difference was they've stated that there are daily interest charges added between last payment date and settlement date and then an early repayment charge off 58 days.

When looking at our Ts&Cs one clearly states there will be a rebate of interest over the remaining term but then a charge of 58 days interest up to £250.
The other states there will be a rebate calculated as per the CCA but states about a 58 day interest charge.

Do we have to pay the early repayment charge on the second?
I know the CCA says the lender can add a payment up to 58 days interest but the wording of the Ts&Cs does not say that they will.

Mags_cat

I took a Lloyds personal loan to buy my car.

I wanted to overpay it, so I got their account details and paid the normal DD + an overpayment every month. This didn't reduce the interest (frontloaded) but it did cut down the number of payments I made.

At the end of the loan, I cancelled my overpayment SO when the balance was down to less than one month's normal DD.

The final DD was taken, no charge for *early* repayment.

So - could you pay off enough to get you to within one month's normal DD and let them take that as scheduled?

ChickenStevens

That's another thing I was wondering, as well as whether the early repayment charge was enforceable on the loan where it's not stated on the Ts&Cs.

I don't know how it works. The interest rate is fixed. I read somewhere that if you pay a lump sum and leave on payment then you won't benefit for the interest rebate under the consumer credit act?

jonesMUFCforever

ChickenStevens wrote: »

That's another thing I was wondering, as well as whether the early repayment charge was enforceable on the loan where it's not stated on the Ts&Cs.

I don't know how it works. The interest rate is fixed. I read somewhere that if you pay a lump sum and leave on payment then you won't benefit for the interest rebate under the consumer credit act?

Scan a copy of your CCA agreement and I will show you where the T&C about ESF is.