RBS loan part repayment

eugine

I rang RBS and got an early settlement figure the other week with the intent to repay it in full. I received a letter with a figure of £1,246.56. And a settlement date of 12th June (iirc). However, when it came to repay it, I could only afford to pay £1,000 off the loan (via quick deposit). RBS rang me to confirm that I wanted to do this and I said yes, they then mentioned something about a 58 day interest fee. I wasn't really aware and am pretty rubbish on the phone so I just agreed. It was a call from my branch and the lady seemed in a rush. I haven't received a letter from them since the part repayment (last week).

My loan statement now sits at -£250.55.

After some quick skimming around this forum, are they right to charge the 58 day interest fee at this point? Isn't that only when you have repaid it in full?

How much will the fee actually be?

When will the fee be charged?

Also, how do my repayments work for the remaining amount? Are they still monthly on the same date?

Just want to get some idea of what's right and wrong before I ring them up again. Any advice appreciated.

The bank seems as useless as me to be fair.

pogg000

Whats your rate of interest?

eugine

pogg000 wrote: »

Whats your rate of interest?

21.95% per annum.

Tixy

You'd need to check your agreement regarding the 58days interest early repayment charge or any charge for a partial repayment.

You say the statement now shows £250.55 balance - presumably you can see the amount of interest charged this month?

How much is your normal monthly payment?

eugine

Tixy wrote: »

You'd need to check your agreement regarding the 58days interest early repayment charge or any charge for a partial repayment.

You say the statement now shows £250.55 balance - presumably you can see the amount of interest charged this month?

How much is your normal monthly payment?

Will do, thanks. Need to find my agreement letter...

My statement shows the £1,000 'overpayment' and then two interest charges after that. £21.18 and a £34.87 'part payment interest' fee.

My normal monthly payment is £63.51.

So the fee has been taken. I'm just unaware how much my final payments will be and how many of them there are.

chambta

It's 58 days interest on all personal loans over a year in term. It's the same on both part and full repayment. If you log into your internet banking you'll see reference to the specific amount charged.

It's still worth making those overpayments - the earlier in the loan the better as the charge is a smaller percentage of the overall saving.

There's a choice of either reducing the payments or the term - the default will be to reduce the payment unless you specified otherwise.

The loan payment date will be unaffected.