Lloyds TSB Loan Ripp OFF (Revised)

MarkyMarkD

Hmm, I was worried that you'd say that.

Lloyds are pants to be charging a settlement fee on the original loan. Many other lenders wouldn't do so if you were taking out a replacement loan.

Given that LTSB are stuffing you on the settlement fee, do look elsewhere for the replacement loan before simply accepting LTSB's increased price. Many other lenders are cheaper.

shandypants5

Hehee.. yep Lloyds are indeed pants and I told their manager so on the phone..

I have applied for a loan at 6.3% with another lender, so hopefully I will be accepted.

my main mission then will be to find a way to twist lloyds own paperwork up their nether reigons and pay off the existing loan without incurring charges.

either you CAN make over payments or you CANT.... make up your minds Lloyds...

dawnylou

MABLE wrote: »

Crap. It does work I have done it myself quite a few times. you are just creating a problem when you dont really know yourself.

Well I don't know how you managed to do it, but that is not normal procedure.
I do not know why you say I am creating a problem I was doing no such thing - I was merely offering advice.

jay78

dawnylou wrote: »

Well I don't know how you managed to do it, but that is not normal procedure.
I do not know why you say I am creating a problem I was doing no such thing - I was merely offering advice.

Do you work for Lloyds TSB? As I stated originally this was advice from somewone who works for Lloyds. Things could be entirely different for other banks.

dawnylou

jay78 wrote: »

Do you work for Lloyds TSB? As I stated originally this was advice from somewone who works for Lloyds. Things could be entirely different for other banks.

Yes I do - and we are ALWAYS advised NOT to inform our customers that they can get out of paying the Early Settlement Fee by paying all but one payment off as this is not the case and a fee can still be applied when the last payment is collected.

jay78

dawnylou wrote: »

Yes I do - and we are ALWAYS advised NOT to inform our customers that they can get out of paying the Early Settlement Fee by paying all but one payment off as this is not the case and a fee can still be applied when the last payment is collected.

Here's where I got my info:
http://forums.moneysavingexpert.com/showthread.html?p=5840654#post5840654

MarkyMarkD

Maybe LTSB have fixed their system fault which allowed people to get away with this? And therefore the post just referenced is out of date?

towseriv

It is niot a fault and it has not been fixed. Strangley enough some branch managers don't like the idea of cusotmers avoiding paying for something so tell thier PBM's that it won't be the case.

towseriv

Also Lloyds are not 'pants' they are just as good as any other supplier of loans.

jamesd

If you want to reduce the early settlement cost, pay off the whole loan without asking for an early settlement amount. The interest to the day you paid will be applied and up to one month more at the lender's discretion if the loan is for more than a year. Any extra you paid must be refunded to you.

If you instead ask for an early settlement figure you must be given the value for the date 28 days after they receive the request and they get to charge that extra 28 days of interest in addition to the possible extra month of interest for a loan over 1 year.

shandypants, assuming they are applying the Consumer Credit (Early Settlement) Regulations correctly your outstanding loan is about 11230, for more than one year, and 53 is a month's interest on that. If your outstanding loan balance is half that it appears that they aren't acting properly but are going to charge you as if you'd asked for a settlement figure instead of as if you'd just paid without asking for one.