Overpayments GE money loan

russellm72

Hi,

First the background........

I had a new bathroom fitted by Dolphin a few months ago (DONT DO IT). I took out a GE Money loan to finance it as I know I was able to make overpayments and wanted it paid off in a year. Total Loan ammount £6800 or close to that and I'm scheduled to pay £129.17 for 120 months which as u can imagine would be a shocking ammount.

Ok 1st month I made a 50% overpayment = £3400 and in the second month roughly another 50% overpayment of £1600. So £5000 has been wiped from the account already and my monthly interest payment will be slashed. I want to make another 50% overpayment so ~£800 and let the account finish by direct debit. I haven't worked out exactly how long this will take but does anyone know if there is a limit to the ammount of monthly payments one must make? I have asked this question (on here) before i started paying off the loan and someone said as long as you allow a payment to come out and clear the account it'll be fine. So, if for example after my pnultimate payment there was lets say £50 left in the account would it automatically take this as the final payment and close the account?

I am just concerned with the following stated on the loan agreement;

"If you excercise your right to settle this agreement early, the following ammounts will be payable for every £1000 borrowed"

When 1/4 of the term has elapsed

---

£920
When 1/2 of the term has elapsed

---

£752
When 3/4 of the term has elapsed

---

£476.

Is this just if you phone up and say I want to pay it all off over the phone. So if I were to phone up within the first 2.5 years of the loan and pay it off they'd charge me 6.7 x £920?

I am hoping to pay it off in a year so what's to stop them charging me under this statement.

Any comments will be well appreciated and I hope other people can relate to this issue and maybe in the same position.

Thanks in advance

Russell.