Settlement higher than balance

us,thecat&thedebt

Hi all,

finally in a position to get rid of the horrific lloyds loan... or so i thought..

bearing in mind the account is in arrears (they havent had a payment in 6 months) i thought they would be eger to take my money and run..

with this in mind and a balance of nearly 8k i rang to offer 5k to settle..
(with room for neg)

but was told to settle now would be 8300ish

to top it off the loan was orginally for 6k :eek:

has anyone ever had experience in dealing with lloyds and settlements?

i would have thought they would be glad to see the back of us!!!!

mrmajika

Was the balance "nearly £8k" when you last made a payment ?

If so, then the balance you quote is probably quite right.


It's terrible that they seem to want all their money back and interest on top!! :eek:

Having to pay loans back in full ? What is the world coming to !?:D

darich

us,thecat&thedebt wrote: »

with this in mind and a balance of nearly 8k i rang to offer 5k to settle..
(with room for neg)

Did you really believe the bank would just write off the extra £3k plus??

If they did then why would anyone pay back the full amount of a loa?
And that being the case, the banks would go out of business lending 6k and receiving only 5k in return.

Impossible to say if the figure you;ve been quoted is reasonable without further info but if you doubt their figures ask them for a breakdown.

us,thecat&thedebt

sorry it seems i was mis understood

i was in no way saying that i should not pay pay back what i borrowed just that i didnt expect to have to pay the intrest for the next 3 years when i want to settle early

i borrowed 6k and have made payments of aprrox 1.5k then i owe 4.5k plus interest my point being that 3.5k of interest is alot in incur in 2 years

CLAPTON

you dont give sufficient details to form a judgement

how much was the original loan?
what apr
what term
what monthly payments
was PPI added
when did you start defaulting and how much are you paying now

is the loan still with Lloyds or with a debt collection agency?

darich

us,thecat&thedebt wrote: »

sorry it seems i was mis understood

i was in no way saying that i should not pay pay back what i borrowed just that i didnt expect to have to pay the intrest for the next 3 years when i want to settle early

i borrowed 6k and have made payments of aprrox 1.5k then i owe 4.5k plus interest my point being that 3.5k of interest is alot in incur in 2 years

I undestand now - it does seem high given that you want to settle. That figure seems like the total you would pay if you paid every month as originally planned.
I would query the amount since it should be larger than what you owe but not as large as what you have been quoted.

i originally thought that you hadn't been paid them for 6 months and now wanted to clear it, knowing the you had a balance of around 8k but were willing to offer only 5k to settle.

Like clapton said, further info required but also check the conditions of the laon - early repayment may not be allowed without incurring the full amount of interest.

GeorgeUK

Not had a loan, but i read somewhere a while ago that it may be possible to pay most of a loan off, then keep a relatively small balance unpaid so that this is the amount that the bank charges interest too - as you haven't paid off your loan early. Then you make minimum required payments as necessary and pay off the loan at the agreed time.

Would you be able to do something like this?

Like i said - it was something i read, so can't be sure what types of loan it covers and if it may apply to your situation.