Early Settlement Fee

Melkea

We stupidly took aloan with First Plus. When we wanted to settle the account, we knew roughly the amount that needed to be paid off. On the request of the settlement figure we discovered that due to the short length of time that the loan had run against the full length of the loan, we discovered that our early settlement payment figure was in the region of £10,000. Is there any way we can claim any of this back?
Any suggestions welcomed.

nomoneytoday

Afraid not. You signed a contract to pay them interest for x number of years. They will rebate some of this when you cancel in line with fixed rules...

frugalpam

Melkea wrote: »

We stupidly took aloan with First Plus. When we wanted to settle the account, we knew roughly the amount that needed to be paid off. On the request of the settlement figure we discovered that due to the short length of time that the loan had run against the full length of the loan, we discovered that our early settlement payment figure was in the region of £10,000. Is there any way we can claim any of this back?
Any suggestions welcomed.

When did you take out the loan? See below - taken from Moneyfacts.co.uk.
http://www.moneyfacts.co.uk/loans/guides/rule78.aspx
If you took the loan out after 31 May 2005, they are not allowed to use the 'Rule of 78' in their calculations, so ask them how they've arrived at the figure they've quoted you.
Another useful link is http://www.financesurgery.co.uk/loan/rule78.cfm

Pam