Wish I'd never got a Lloyds loan

Daveo1983

Got a Lloyds loan back in 2009 for £2k. Had to re-finance to £5k following a redundancy and some issues. Payments on the re-finance in 2012 were £135 every month by DD and I haven't missed one of them, but for the last year or so I've been over-paying by about £200 a month.
This month will (would have been) my last payment, carefully worked out to be a standard DD payment and to include the last lot of interest (which a surprising amount of people seem to forget about).
Got a letter from them today saying that my final payment will incur a 58 days interest early repayment charge (even though all the info I have, AND the website, says there will only be an early repayment charge if you CLEAR the loan as part of an extra payment).
Called them to confirm and the 'adviser' said that she couldn't comment as her colleague 'isn't available at the moment'.

Unimpressed doesn't cover it.

enthusiasticsaver

Sounds unacceptable to me especially if the information on the website and original terms and conditions are unclear. However presumably the balance is low so I assume 58 days interest should not be huge unlike if you were paying it off in a big lump sum. I would speak to them again to clarify and ask to speak to someone else if they do not seem to know the answer to your question.

Tixy

It is standard that lenders charge 58 days interest to repay a loan in full early.

However obviously they can only do that if it is detailed in the original agreement terms & conditions. If for some very strange reason they omitted that from the agreement then definitely challenge them on it. Although as said above the value of that extra interest is presumably very small.

Daveo1983

Thanks for the advice enthusiastic - apparently it's a standard letter that is sent out when a loan is going to be closed early, and I can ignore it.

We'll see on Tuesday when (I hope!) I make the last payment on it.

The interest would have been on about £40, and I know I'm splitting hairs, but it's still frustrating. Although I'm sure we're all aware of that. Otherwise, why would be on here?? :-)