What should I do?

Kizwiz

I have a loan which I have one payment left until it’s completely paid off. I got an email today which reads:

We've noticed that you've made a large payment which has resulted in your account being in credit by £700. 

Currently we're treating this as an overpayment which does not benefit from an interest rebate. Overpayments can be used to offset any future payments due on your account. If you don't contact us this will be how the credit on your account will be treated.
If you'd like to receive an interest rebate and reduce your monthly contractual payments please reply contact us requesting this credit to be applied as a partial settlement. Once you've requested this, we'll confirm your interest saving and future contractual payments via email.

I’m not 100% sure what it means. But should I leave it or ask to receive an interest rebate? This payment of £700 means I would be paying off my loan 3 months early.

Nebulous2

Did you make an additional payment?

Some lenders expect notified first - you can't just pay extra money towards your account. 

Kizwiz

Nebulous2 said:

Did you make an additional payment?

Some lenders expect notified first - you can't just pay extra money towards your account. 

Yes I paid an extra £700 off.

Jami74

Kizwiz said:

Yes I paid an extra £700 off.

When you make an extra payment you are meant to contact them, they usually give you two choices; either continue paying your current monthly payments and the loan will end sooner or carry on paying over the same time scale and they reduce the monthly payments. 

You say you only have one payment left, if you want to spread that payment over the number of remaining months then you'll need to contact them. If you want to pay the last payment in full then you don't need to.

Kizwiz

Jami74 said:

Kizwiz said:

Yes I paid an extra £700 off.

When you make an extra payment you are meant to contact them, they usually give you two choices; either continue paying your current monthly payments and the loan will end sooner or carry on paying over the same time scale and they reduce the monthly payments. 

You say you only have one payment left, if you want to spread that payment over the number of remaining months then you'll need to contact them. If you want to pay the last payment in full then you don't need to.

Right I understand now, thank you. Going to just get it paid off and done with in one more payment