Loan Company won't provide Settlement figure

h19g

Hi,

I called up my loan company in June and asked them for a settlement figure. I told them that that I might have been able to access some money however this was for a limited period of time. On each occasion I phoned I was told that they would try and get the settlement figure then get back to me.

In the time that it has taken me to try and get the figure I can no longer get access to the funds which means the company now have me tied in for a longer period of time than would have been the case should I have settled.

Does anyone know if the company breached any rules or financial regulations by doing this ?

Thanks

somethingcorporate

What has changed to mean that the money is no longer available for you to settle? That's hardly the fault of the loan company.

Did you put your request for the settlement figure in writing?

h19g

Someone had offered in the family to help me pay as they had a 0% offer on the credit card. This then expired.

The issue is that they continually fobbed me off.

The request was made multiple times over the phone and as they record all these conversations it shouldn't be an issue

McKneff

Youre not any worse off though, all that has happened is that you have to pay the money you borrowed in full.

Cant see any rules have been broken to be honest.

bargainbetty

You signed an agreement to pay the loan back over a set period of time. You are trying to pay it off early - how are they tying you in for a longer period of time? They aren't extending it.

Call again, and ask the formal procedure for obtaining a settlement figure, or look on your paperwork and find it yourself.

Follow it. Follow up. If you haven't done that, then no, they haven't done anything wrong.

somethingcorporate

I am not that familiar with the banking codes of practice to know whether something was broken - I am pretty sure they do have to give you a settlement figure though although whether they have to do this to certain timescales I do not know. I would suggest it has to be reasonable (30 days?) but you probably cannot push back the transitory nature of your ability to get extra cash back on the banks slowness.

When you do get a settlement figure can your relative not get another 0% BT card? Plenty out there - check out the credit cards page.

XXSCOTSLASSXX

h19g wrote: »

Someone had offered in the family to help me pay as they had a 0% offer on the credit card. This then expired.

most loan companies will not accept any payments via credit card ...something about paying credit with credit..... id double check with company on their policy re credit card payments it may well have been a 'no go'from the start anyway

McKneff

The 0% cards are usually for goods purchased though,
wouldnt paying the loan with a card like this count as a cash withdrawal therefore not covered by th 0%.

I really wouldnt know, it's just an observation.

h19g

Hi all,

Thanks for your responses. It seems that it is immoral but not illegal.

The company in the past have accepted credit card payments but I don't know if they would accept it as a settlement. The company is rumoured to be in a bad way so don't know if that would affect things.

Thanks again

AlexLeigh

You should put it in writing to the company and make sure you keep a copy.

Your original terms and conditions should include details of any penalties you may incur AND if it's a recent enough agreement (in the past few years) it should give you an idea of what your settlement figure will be after 1/4 1/2 and 3/4 of the agreement term have passed.

McKneff

AlexLeigh wrote: »

You should put it in writing to the company and make sure you keep a copy.

Your original terms and conditions should include details of any penalties you may incur AND if it's a recent enough agreement (in the past few years) it should give you an idea of what your settlement figure will be after 1/4 1/2 and 3/4 of the agreement term have passed.

I think you are possibly wrong in thinking this way to be honest,
settlement figures like this are usually when you have missed payments/ defaulted etc.
But not if payments have been kept up to date.

Ask them anyway, just out of curiosity and let us know hwo you get one.