Rule of 78 abolition for loans taken out before 2005

muzzle_2

Hi all,

I have an unsecured personal loan that was taken out with Northern Rock prior to 2005. I now want to pay it off, and have read in various places that the Rule of 78 charge on loan redemptions is due to be abolished this year for loans taken out before 2005. However, I can't find the date that this new ruling is due to take effect.

I'm not sure of the exact figures involved off the top of my head, but as a rule of thumb would it be wise to wait until this new ruling takes effect before redeeming the loan and if so, what date does it come into force?

Thanks for any help.

nomoneytoday

The magic date for the rule of 78 is the 31st May 2007

WH39

Hi

Is there a new formula to calculating early settlement figures or is it just 2months interest bank can charge.