Settling Lloyds loan early

jacupp

Hi,
I have just had exactly same experience as above. I was quoted around 250 pounds to settle the loan. I have repaid the balance of the loan less 1 pence. Then I have paid extra 17 days of interest since last interest was charged which was around 51 pounds. The ramaining balnce of 1 pence is the balance they will generate interest on for the remainder of the loan after I ask to settle it. I have spoken to them on the phone about it and I said that it is a scam to charge people extra interes on something they do not owe to them. They said that I am trying to avoid the charges by doing so. Cheeky !!!!!!s. They did not have a clue how I calculated the interest and how I came up with all the figures.
They even sent me a final response letter for the Ombudsman which I did not ask for.
Are they really employing such daft people there?
Is Lloyds the worst bank ever?

glennstar

BethRomz wrote: »

Oh wow its that simple?

I suggest you read the terms and conditions of the agreement. It may not be this simple as there are potentially a number of technical and administrative items that might foil this otherwise fiendishly clever plan. If you contact them they are obliged to tell you honestly if this is an option and help you arrive at a suitable outcome.

To be honest, if I was saving myself 5k I would swallow the loss of 300 notes just to get the situation resolved as it is never a good idea to leave agreements such as this hanging about if you can avoid it.

AngusMcFilth

I settled my Lloyds loan in the same way a few months back. Made an overpayment for £100 less than the current loan balance, which went on without charge. When the normal payment went through the following month it put my loan account into credit, which was promptly refunded. There were no charges.

Marcoj

Hello all. In response to the Lloyd bank early settlement of Loans fiasco. My current outstanding is £3723,15 this morning I paid off £3428.95 leaving  £294.20 which now leaves 2 remaining months to pay at £147.10  Ive added 4 pence to this, as this is a small tip for them.The purpose of all this is an experimental method of early repayment without requesting  an early resettlement figure which I know is about £180 ish . I will post again next month when only one month remains on the balance, so if any charges are added to that it would probably unlawful but we'll see. 

Nearlyold

Early settlement fees are not unlawful, the "Early Settlement Regulations 2004" (as amended to comply with the ECCD 2011 which introduced the right to make partial settlements) allow the lender to add either 1 or up to 2 months interest depending on how long the loan has left to run on both partial or full early settlement. So Lloyds could quite legitimately charge you an early settlement fee on the £3428.95 partial settlement you made if their T&Cs  specified this. 

Thrugelmir

Marcoj said:

Hello all. In response to the Lloyd bank early settlement of Loans fiasco. My current outstanding is £3723,15 this morning I paid off £3428.95 leaving  £294.20 which now leaves 2 remaining months to pay at £147.10  Ive added 4 pence to this, as this is a small tip for them.The purpose of all this is an experimental method of early repayment without requesting  an early resettlement figure which I know is about £180 ish . I will post again next month when only one month remains on the balance, so if any charges are added to that it would probably unlawful but we'll see. 

You've omitted to allow for future interest charges.