Early repayment of RBS loan - settlement charge

includemeout

Hi there

I wonder if anymore more savvy with banks loans that myself could help me out here...

I took out a loan for £10,300 in November 2014 to consolidate some existing debt. My monthly repayment amount is £200.13 and I currently have £7046.16 remaining on the account. I requested an early repayment quote a couple days ago and received the following, somewhat troubling response:

"Thanks for your early settlement quote request. On 01/08/2016, your early settlement figure is £7610.86 - this includes an early settlement charge and is valid for 28 days."

Now when I took out this loan I specifically asked whether an early settlement figure would be levied and told that it could not because these fees can no longer be charged, and that I would just pay a couple months interest (I believe 58 days to be precise).

With that in mind, why would be settlement figure quoted be almost £570? Am I missing something here?

Many thanks for your help

[Deleted User]

Where did you get the £7046 figure from?

jonesMUFCforever

The early settlement fee will not be £570.
Your figures are wrong somewhere.

If you have a loan statement add up the last 2 months interest to give you a better idea of the true figure.

Nearlyold

Deleted_User wrote: »

Where did you get the £7046 figure from?

Just wonder if the OP has worked this out themselves thinking that the interest is evenly spread through the term.

[Deleted User]

That was my suspicion...

includemeout

jonesMUFCforever wrote: »

The early settlement fee will not be £570.
Your figures are wrong somewhere.

If you have a loan statement add up the last 2 months interest to give you a better idea of the true figure.

This is where my concern stems from, I worked out that two months interest would be in the £60 region so to have £7610.86 quoted when I have £7046.16 remaining on the account makes no sense. I got the £7046.16 figure from my online statement.

I'll call RBS tomorrow, there must be something wrong with the quote.

simpson_77

I settled my Natwest loan last week monthly interest is circa £133 pm, balance on 1st July £9,280, balance on settlement letter 22nd July £9,634 difference of £354. I would say there is something amiss with your £570. Had another settlement quote on the 28th July @ £9,660 = £4.30 interest per day x 58 is £249.40.....

Hold on, this isn't right either. i Guess I got the settlement figure at the wrong time, If it had been the 1st July I would have paid less. I think you need to work back from the date of your last payment?

includemeout

I called RBS and they said that the settlement quote they provided was current as of May, no explanation as to why an out-of-date figure was quoted to me on 2 August (by text and email). In the end the fee was 58 days interest amounting to a little over £60, much more sensible.

Thanks for the advice, reading this ensured that I knew something was up and contacted RBS. Not sure what would have happened had I just paid the original quote...

PeacefulWaters

includemeout wrote: »

Not sure what would have happened had I just paid the original quote...

They'd have refunded you.