GE MONEY contractual loan

nathan4692

Hi, can anyone help please..I took out a loan with GE Money some 7 years ago at a time when I was under great financial burden. The loan is secured against my property. I have had their latest annual statement and it shows payments of over 5k from me and the account is up to date the amount that the loan has been reduced by is just £469!! The interest charge is 10.22% variable so no doubt the first chance they get they will increase again..I spoke to them and explained my concerns and as and when I can afford it offered to increase my monthly payment by 200 of even £300 to help bring down the debt faster.
Their response at first was that I was not allowed to do this?? when I pushed the points of concern they explained that due to the "contractual" nature of the loan if I overpay the money paid will go into a separate account and only when this amounts to 2x my monthly payment i.e £832 then I need to call them and they can apply this to the loan as part settlement??
I have never heard of this before and I believe it can not be right, has anyone had any experience like this before or can anyone tell me if they are allowed to do this...
It really is one of the worst things that I have ever done taking out this loan:(
Thank you for reading

stator

That does sound odd.
Do you have the original paperwork? What does it say about overpayments?
What is the term of the loan?