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TSB Loan - early settlement help needed
Hi everyone, we'd be really grateful for some help. We've recently just got a low rate loan to consolidate our debts (our APRs were through the roof and this way everything will be cleared in 5 years). We have a TSB loan at 13% which we owe £4080 on. Now, when we took out the loan 4 years ago we were told that we could pay it nearly all off, leave £1 on for instance and then ask for an early settlement figure on the remaining balance. TSB are having none of this, they say we can only pay 90% of the balance which will still leave £400+ on it and the monthly payment of £164 will still be taken each month. Or we have to pay in full. The early settlement figure on the full balance is £4182 so in essence it will cost us £100 to pay it all off in one go. Where do we stand with this? We're annoyed that we were told wrong, is it worth sticking to our guns or shall we just give in and pay it in one go?
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Comments
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What does the signed loan agreement state ? Simply pay off as much as allowed leaving a smaller balance, the more you pay off the less interest you will pay overall.
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It doesn't state anything about only being able to pay off a chunk of 90% or less. It just says that if we over pay then the monthly payment will still be taken in full each month even if the overall balance is less. On the phone they said that the "policy" has changed now and they don't allow you to pay off the majority then settle on the remainder like we were advised when we first got it. My hubby asked how long would it be before we could settle the final part after paying off a chunk and she just said "oh I don't know, they don't like telling you that because they don't like you doing it". Got a feeling we're being fobbed off because they want more money out of us 🙄0
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They cant change the agreement half way through the contract originally signed. I would stick to your guns if there is no early repayment clause. I would have another look through your loan agreement with a fine tooth comb and make sure there is nothing in there.0
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if this was me I would submit a formal complaint with a threat to the ombudsman, I would also mention you have a note when the phone call was made (even if you don't know or don't remember this yet) explaining what you said. I know it's late replying but for other readers. they will probably want to avoid the ombudsman and submit to honouring their original words to save themselves the costs of you taking it to the ombudsman.0
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As above, your agreement is governed by the consumer credit act, and both you and they, are bound by it from the date you both signed it, to the date it’s actually repaid in full.
Neither you nor they can change or alter those terms to suit any new policy.
I suggest you bypass the phone agents, put all of this in writing, and make an official complaint to them, stating the above.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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