Loan Closure with Lloyds TSB

9ice

Hello all

Please I need you advise on how to make some gains from the loan I took from LloydsTsb sometimes in August 2010. I am now in a position to pay everything off andI requested for a settlement quote from Lloyds they came back with thefollowing figures:

Amount outstanding (Including interest due to the end of your loan) - £3374.77
Early Settlement Rebate valid until 26th March - £414
Total Amount to settle your loan ( less early settlement rebate) - £ 2960.77

Howeverfrom my online account this is what I got:

Original loan amount:
£6,000.00

Original loan term:
60

Openingdate of loan:
26 Aug 2010

Monthly loan repayment amount:
£175.61

Next loan repayment date:
28 Mar 2014

Remainingterm (months):
18

Current Balance as at March 9
This is the latest outstanding balance of your loan. Please note this isn't the amountneeded to close your loan. -£2,698.76

Can I pay fore.g £ 2,690 and leave £8.76 to go out with next DD date? Am confused with the wholething and would appreciate any help

bigadaj

So your settlement figure should be your current balance plus two months interest.

The best way to do this normally is to make a large payment and then allow the direct debit to clear the balance, which means the penalty should be lower.

That's how it should work but without seeing the whole contract we can't say for sure, you could ring them and ask, though might not get a simple or pleasant answer if it costs them money.

If I were you I'd pay a lump sum of £2500 and then leave the dd take the rest, it could be that you get charged more interest than we anticipated but your apr is about 8%?, so better to pay off early as you can't get anywhere near that rate in savings.

Lloyds_Bank

9ice wrote: »

Hello all

Please I need you advise on how to make some gains from the loan I took from LloydsTsb sometimes in August 2010. I am now in a position to pay everything off andI requested for a settlement quote from Lloyds they came back with thefollowing figures:

Amount outstanding (Including interest due to the end of your loan) - £3374.77
Early Settlement Rebate valid until 26th March - £414
Total Amount to settle your loan ( less early settlement rebate) - £ 2960.77

Howeverfrom my online account this is what I got:

Original loan amount:
£6,000.00

Original loan term:
60

Openingdate of loan:
26 Aug 2010

Monthly loan repayment amount:
£175.61

Next loan repayment date:
28 Mar 2014

Remainingterm (months):
18

Current Balance as at March 9
This is the latest outstanding balance of your loan. Please note this isn't the amountneeded to close your loan. -£2,698.76

Can I pay fore.g £ 2,690 and leave £8.76 to go out with next DD date? Am confused with the wholething and would appreciate any help

Hi 9ice. Your settlement figure will be different to the amount shown on Internet Banking. If you'd like to talk to us about the amount you'll need to pay, feel free to give us a ring on 0800 096 1282 (option 4). Lines are open between 8am and 10pm, seven days a week.

Thanks

James