Early repayment charge

anngem

Hi I have a loan that was originally set up with Yorkshire Bank and has now transferred to virgin. My loan agreement does not mention a 58 day interest charge that Virgin now implement when paying off a loan early. Can I dispute this as my term and conditions shouldn't have changed as applied before the merger and the YB website states term should not have changed. ?

Nasqueron

You said it's not in the loan agreement - do you have the terms and conditions for the loan?

molerat

Yes.  if your original agreement does not contain any penalty / early repayment charges then they should not be charged by the new owner of the loan.  Have you actually queried this with Virgin or are you just assuming from the terms of a Virgin loan ?

CliveOfIndia

anngem said:

My loan agreement does not mention a 58 day interest charge

Are you sure there's no mention of it?  Admittedly it's likely to be buried in the T&Cs somewhere, but I'd be a little surprised if it's not mentioned.  It's pretty much standard for most lenders.  2 months is the most they're legally allowed to charge - there may be a handful of lenders who charge less, but most will charge the maximum they're allowed to.