Lloyd’s banks personal loan

jennjonesy

i have asked for an early settlement quote, they want £100 MORE than my actual remaining balance!? How is this helpful and ‘caring’ and ‘by my side!’ as their adverts promote!? Have sold my van to clear debt, loan credit card etc, and they not prepared to reduce the 800£ interest just a little bit? Even as a gesture!? Am disgusted frankly 😡any idvice gratefully received, Jenny.

[Deleted User]

They're reducing the interest by the very fact you're settling early and therefore will pay no more interest.  You don't get a refund on interest already paid.

They charge two months interest as an early settlement fee. It's in the terms you agreed to. Nothing to do with 'caring' or making a gesture or doing anything disgusting.

CRISPIANNE3

jennjonesy said:

i have asked for an early settlement quote, they want £100 MORE than my actual remaining balance!? How is this helpful and ‘caring’ and ‘by my side!’ as their adverts promote!? Have sold my van to clear debt, loan credit card etc, and they not prepared to reduce the 800£ interest just a little bit? Even as a gesture!? Am disgusted frankly 😡any idvice gratefully received, Jenny.

In the past when I have taken out a Lloyds Bank loan and wanted to pay off the balance early I have usually paid off the balance less a nominal £1.00. I then would request a settlement figure and that would then be based on the £1.00 outstanding. However perhaps things have now changed. 

Clive_Woody

Multiply the number or remaining payments (if you didn’t repay early) by your monthly payment amount to see how much you would repay. Now compare this to the settlement figure to see how much you are saving yourself by repaying early.

foxy-stoat

jennjonesy said:

i have asked for an early settlement quote, they want £100 MORE than my actual remaining balance!? How is this helpful and ‘caring’ and ‘by my side!’ as their adverts promote!? Have sold my van to clear debt, loan credit card etc, and they not prepared to reduce the 800£ interest just a little bit? Even as a gesture!? Am disgusted frankly 😡any idvice gratefully received, Jenny.

Needs some more numbers to give you some clarity - hopefully the loan interest wasn't into double figures and the outstanding debt isn't 4 figures long.

Your only option is not to clear it early and keep making the monthly payments - you will find that you will be paying MORE than the settlement figure if you dont settle early.

bradders1983

jennjonesy said:

i have asked for an early settlement quote, they want £100 MORE than my actual remaining balance!? How is this helpful and ‘caring’ and ‘by my side!’ as their adverts promote!? Have sold my van to clear debt, loan credit card etc, and they not prepared to reduce the 800£ interest just a little bit? Even as a gesture!? Am disgusted frankly 😡any idvice gratefully received, Jenny.

Well this is how personal loans generally work, Jenny. Interest is added on every month, it isnt pre-loaded (your opening post seems to suggest you think it is). The £100 will be the settlement fee as dictated by your terms (probably a month or two months interest) but consider how much interest wont be paid in the future by paying it off now. 

Why you are "disgusted" is beyond me.