First Direct Loan early repayment interest refund

ejt
ejt Posts: 9
First Anniversary Combo Breaker
Forumite
This is just a quick message for anyone who has used (or is planning to use) the early repayment option for a First Direct loan. The way it works is you call and are given an early repayment figure, which is valid for 28 days. This includes one month interest (early repayment charge) plus 28 days interest (because the figure is valid for 28 days). I queried the second figure, because it is not present on the "Everything you need to know" page for their personal loans:

Are there any charges for settling early?

Yes, we charge 1 months' interest on the settlement figure if you close a Personal Loan account early.

The customer service agent agreed that, although the additional 28 days interest charge is in the full terms and conditions, it is not reasonable that it is not included in the "Everything you need to know" page. She queried this with her management and promptly refunded me the additional interest payment.

This page will shortly be updated, but I believe that everyone who signed up for a loan on the basis of this incomplete information may be able to claim back the extra interest too. My loan was for a car purchase, and the interest repaid was £86. Not life changing but definitely worth doing.

If you have made an early repayment in the past, or are planning to do so in future (having signed up on the belief that early repayment is only one month interest), then it might be worth calling First Direct and asking if this can be refunded.

Comments

  • ejt said:

    This page will shortly be updated, but I believe that everyone who signed up for a loan on the basis of this incomplete information may be able to claim back the extra interest too.

    No. It would only potentially apply to those who settled early, not everyone who took out a loan.
Meet your Ambassadors

Categories

  • All Categories
  • 341.6K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449K Spending & Discounts
  • 233.5K Work, Benefits & Business
  • 605.8K Mortgages, Homes & Bills
  • 172.4K Life & Family
  • 246.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards