Early repayment charges

lfk39

I want to pay of a secured loan and would like to know roughly how much I would need to pay before I request a settlement quotation. Can someone please explain in plain English what the following means" You may make early settlement in accordance with the CCA 1974. The amount payable by you will be the total balance outstanding on the account at the date of settlement and the total of interest that would have fallen due if you had continued to pay the total monthly payments shown on their due dates until the account was repaid in full"

libf

You pay the current balance, plus all the interest you would have paid if the loan had run it's term.

So basically it will cost you the same whether you pay if off in full now or continue making all the payments until the loan ends naturally.

Seanymph

You have nothing to gain by paying it off early because they will charge you 100% of the term interest regardless.

dimbo61

Might be worth a chat/phone call to CAB about this Loan as they can read the paperwork and see if you can save paying ALL the interest if you pay off early

lfk39

Many thanks peeps, that's what I was thinking, my fault for not reading the small print. The laws have changed, so my company may have updated their terms, or I might be in s**t street