Natwest Loan - Repay early loophole?

mourning

Hi!

I'm going to be paying off the rest of my Natwest loan, £2000 approx. However, There is certain fees attached when doing an Early Settlement.

I saw a historic post about paying in money to the loans 'account number and sort code' to bypass these fees.

Could anyone confirm this or have any previous experience doing this?

Thanks in advance!

jonesMUFCforever

Pay enough to repay what is showing on your loan statement as outstanding - let the monthly direct debit go through which should put the loan into credit.
They will refund any excess monies paid and close the loan account.
Do not cancel the direct debit at this stage.

mourning

jonesMUFCforever wrote: »

Pay enough to repay what is showing on your loan statement as outstanding - let the monthly direct debit go through which should put the loan into credit.
They will refund any excess monies paid and close the loan account.
Do not cancel the direct debit at this stage.

Hi Jones!

Thanks for getting back so quickly.

So send a payment to the loans account details via online banking, keep the DD running and then its all done without any settlement fees?

mourning

Just done a small test payment and it took it off the loan balance immediately! Cheers!

jonesMUFCforever

It will work as long as there is no ESF on any additional payments.
I have never had a Nat West loan so can't comment on that.

mourning

There was ESF on additional payments so had to pay up in the end.

But oh well, No more loan! Wahoo!

jonesMUFCforever

All I can say then is do your homework BEFORE getting your next loan.
Go through the T&C 's for something like this.