Dentist interest free loan

Darty310

Hi,

I went to the dentist and was quoted £1200 for some work to be completed. As I could not afford to pay a lump sum of £1200 in one go, they offered me an interest free loan to cover the costs. I signed the agreement and then returned a few weeks later for the treatment. At this second appointment I was told they could try a different treatment which will cost £800.

I opted for the £800 treatment and asked if I could have the £400 difference refunded so I could pay back the loan company as I didn't need the full £1200 credit. My dentist told me this is not possible, but they will give me £400 credit to use at their practice in the future.

Are they allowed to do this? I would prefer that they sent the money back to the loan company to reduce my monthly payment and it ties me into using their services for the foreseeable future.

Thanks in advance.

dj1471

Fundamentally you have paid £1,200 in advance for a treatment. You have then mutually agreed to change it to an £800 treatment. The dentist has received the full £1,200 from you (the loan company, acting on your behalf) and should therefore refund you £400 (in cash, since that's how they were paid).

The loan is essentially separate. You need to refer to the terms of the loan to see if early repayments are possible.

hollydays

You signed a contract for the loan

Fosterdog

dj1471 wrote: »

Fundamentally you have paid £1,200 in advance for a treatment. You have then mutually agreed to change it to an £800 treatment. The dentist has received the full £1,200 from you (the loan company, acting on your behalf) and should therefore refund you £400 (in cash, since that's how they were paid).

The loan is essentially separate. You need to refer to the terms of the loan to see if early repayments are possible.

This isn’t necessarily true, if it had been taken out as a personal loan with the funds being given to OP and then OP paying the dentist then what you have said may be fine. If however this is a credit/finance agreement specifically for dental treatment with the finance paying the dentist direct then under no circumstances should OP be given anything back in cash. The correct proceadure would be to amend the credit agreement, giving the difference back to the credit provider, or even cancelling that agreement altogether with all funds going back to them and reapplying for a new agreement for the new value.

Depending on how long it has been since the finance was applied for it may be out of any cancellation timescale and they may not allow early repayment, or at least not without adding an admin charge.