RBS LOAN (early settlement )

markyc100

Hi all,

I currently have a loan with RBS which I pay £220 a month off and have another 11 months left on the loan. I thought I would be good and pay the loan off early so I called the bank up and they said my settlement figure was £3480. I understand there might be say 1-2 months interest, but not nearly £900. Is there any way round this ? Some people mention paying nearly all the loan off and leaving say 1 payment. I'm confused. Any help would be appreciated.

Herzlos

You can ask them how they calculate it, but it likely involves an early settlement fee of some sort.

It took me about an hour to get info from HBOS about the same thing, in the end it was IIRC 60 days interest on the outstanding balance, so I paid it all off bar just over the monthly payment amount and just let it run out. I think it only saved me about £90 though.

antrobus

markyc100 wrote: »

Hi all,

I currently have a loan with RBS which I pay £220 a month off and have another 11 months left on the loan. I thought I would be good and pay the loan off early so I called the bank up and they said my settlement figure was £3480. I understand there might be say 1-2 months interest, but not nearly £900. ...

See this discussion. A charge of 58 days worth of interest is permissable.
https://www.rbs-communities.co.uk/t5/Borrowing/Early-loan-repayment-charge-contrary-to-Consumer-Credit-Act/td-p/5641

markyc100 wrote: »

...Is there any way round this ? Some people mention paying nearly all the loan off and leaving say 1 payment. I'm confused. Any help would be appreciated.

That's the way around it.

CrowCrow

Pay 99% of the loan off early. Next payment will be taken and any excess will be returned to you. You'll pay no penalties.

chambta

CrowCrow wrote: »

Pay 99% of the loan off early. Next payment will be taken and any excess will be returned to you. You'll pay no penalties.

You get the same 'penalty' applied to any overpayment, full or partial, so how does what you're proposing work?

Coveredinbees!!!!

Well some thing doesn't add up as if you carry on making 11 more payments of 220 that's only £2420, where do they get the extra grand from????