Early Repayment Fee

mdnn85

I was wondering if anyone is able to help or provide some advice.

Some time back my partner and I took out a secured load with a company called Oplo, which has now changed to a company called Tadem.

The original loan was for £25,000 and to date we have repaid around £16,000. However, the settlement figure they’re providing is just under £25,000. I know that there is usually an early settlement fee that is charged but the figure they’ve quoted seems excessive.

I always thought an early repayment fee had a cap of being two months worth of interest. Does anyone know if there is a cap on what a company can legally charge as an early settlement fee?

Thanks

Hoenir

How long was the agreement over and what was the interest rate?  Are there any other fees involved either at the outset or upon settlement of the agreement? Was there a period at the outset when repayments weren't required? 

Presumably this was for vehicle finance. 

Mark_d

When you say you repaid £16k, is this the total value of the payments you made (against the capital + interest), or are you saying that the outstanding balance is £9k?  Your loan documents should explain how the early repayment charge is calculated.

mdnn85

Mark_d said:

When you say you repaid £16k, is this the total value of the payments you made (against the capital + interest), or are you saying that the outstanding balance is £9k?  Your loan documents should explain how the early repayment charge is calculated.

The total repaid so far, capital and interest. I have asked them for a copy of the original agreement as I can’t seem to find it anywhere. Think it may have been online with Oplo so just waiting to hear back from them.

Brie

mdnn85 said:

Mark_d said:

When you say you repaid £16k, is this the total value of the payments you made (against the capital + interest), or are you saying that the outstanding balance is £9k?  Your loan documents should explain how the early repayment charge is calculated.

The total repaid so far, capital and interest. I have asked them for a copy of the original agreement as I can’t seem to find it anywhere. Think it may have been online with Oplo so just waiting to hear back from them.

And if they can't find it they have no proof that you took out a loan?  So you don't need to repay anything??  Just a thought.....

Nasqueron

Brie said:

mdnn85 said:

Mark_d said:

When you say you repaid £16k, is this the total value of the payments you made (against the capital + interest), or are you saying that the outstanding balance is £9k?  Your loan documents should explain how the early repayment charge is calculated.

The total repaid so far, capital and interest. I have asked them for a copy of the original agreement as I can’t seem to find it anywhere. Think it may have been online with Oplo so just waiting to hear back from them.

And if they can't find it they have no proof that you took out a loan?  So you don't need to repay anything??  Just a thought.....

For a secured loan?

Bold strategy Cotton, let's see if it pays off.