LLOYDS TSB personal loan £250 charge!!!!

kavics17

Mine allows as well. Do it either in the branch or over the phone.

dreamdreamer

Mine allowed it as well and I used the overpayment to pay all but £10, then called 5 days later and got a settlement quote for £10.20. Interest was based on the £10 balance not the £3950 i'd had before the overpayment.

kavics17

Thanks for this dreamdreamer, I was wondering how it works. So as long as i leave something in my account than call them, I will be paying only pennies. Fingers cross.

Mags_cat

kavics17 wrote: »

Thanks for this dreamdreamer, I was wondering how it works. So as long as i leave something in my account than call them, I will be paying only pennies. Fingers cross.

I had a loan with Lloyds. I set up a standing order to overpay it - if you ring the Loans team they will give you the sort code and account number to pay it to, you put your loan number as the reference.

The loan went its course, being paid off in half the time because I was overpaying by 100%. When the balance fell below what would have been one normal month's DD payment I stopped the SO and the following month they took the balance by DD. No charges at all to pay it off early.

raab

Guys

Sorry if I am being thick here, but I need a bit of clarification please.

I phoned my bank and they said full balance outstanding was £1979.84, if I pay now it will be £1443.20 which includes £68.88 early settlement fee.

After reading lots of threads on here and inet, I paid £1200 tonight, which will allow my DD of £204.12 to go through and clear it. I worked this out by £1443.20 - £68.88 (fee I dont need to pay) - £204.12 = £1170.2

I rounded this up to £1120 just in case, so when the DD goes it will clear all the capital and have a bit to spare which they will repay me (eventually)

Have I got that right?
Thanks for the advice
Raab

jonesMUFCforever

Sounds like you had PPI on the loan - is that right?

Otherwise why would they take £1440 for a debt of £1979.

raab

no, there wasnt any PPI. It is just that I am paying back 2.5 years early, so saving a whack in interest.

I just want to make sure I have understood the method of clearing early with DD.

jonesMUFCforever

Interest is calculated daily on most bank personal loans - so there would be no reduction in interest charged.
Either you have misunderstood something or there is something iffy with the figures.

raab

Ah, I probably should have mentioned that I have been making large overpayments for the last few months, so it has brought down the capital substantially of where it should be at this stage