Early settlement of loan

mike11_3

I took out a loan through G E Money to pay for my windows. The safestyle rep told me I could make additional payments and clear it early He gave me a chart showing how musch to pay if I cleared it in a year. A part of the agreement says for illustration purposes if I cleared the loan witin 1/4 of the term the following amount would be payable, £940 per £1000 borrowed. I was advised by the salesman that I should ring them (Safestyle) and they would tell what to say when wanting to pay off the balance. I had doubts and rang to cancel the agreement, there finance advisor told me I could pay it off over 6 months and not cost me any interest as they would give £500 for taking it out. Please advise, does this contravine the consumer credit act.

CLAPTON

the cca requires them to give you a illustration of the settlement figure for 1/4 and 1/2 and 3/4 of the loan term and specifies the maximun amounts that can be charged.

Is that what you are asking?

mike11_3

I am asking would I be requried to pay the settlement figure illustrated in the loan agreement if I clear the balance early ie within a year. The illustration says £940 per thousand borrowed. Equally if I did could I claim that I was mis sold the agreement by the safestyle rep saying I could clear it in a year.

CLAPTON

You can ask them for a settlement figure at any time... obviously the figure will depend when you ask.

The CCA specifies how they work it out... so yes you can setttle the debt within a year.

Have you asked for a settlement figure?