How do I make overpayments on LTSB loan?

NikNak_3

Hi,

I was wondering if anyone had an experiance with making overpayments on a Lloyds TSB loan.

I have two loans and I'd like to start paying them off quicker but I have no idea how I go about doing it.

Thanks in advance if anyone can help.

_Andy_

My first port of call would have been the LTSB website rather than a message board. Anyway the answer from there is
[URL="javascript:openPrintWin('single');"][/URL]
You asked us:
Can I make one off payments on my loan?

Our answer is:
One off loan payments to your loan can be made in addition to your regular monthly repayment. One off payments must be of at least £100 but can be made as often as you like at any Lloyds TSB branch or by sending a cheque direct to:

Lloyds TSB Personal Loan Service Centre
PO Box 43
Peterlee
SR8 2YQ

Cheques should be made payable to 'Lloyds TSB (a/c Eisis)'. Please quote your full loan account number in your request and write it on the reverse of your cheque.

NikNak_3

Thankyou for your reply.

jonesMUFCforever

As far as I am concerned you can pay off whatever you want over the counter.
I wouldn't turn you away if you wanted to pay £50 off.

mrmajika

You can also make payments via internet banking.

If using the LTSB internet banking site you must set it up as a standing order. (If you don't want to make regular payments - set it up as an annual standing order, then amend the date each time you need to pay).

Sort code: 77-77-90
Account#: 90000468
Reference: <your 11 digit Loan Agreement Number>

Hope This Helps.

NikNak_3

Thanks, i'd prefer to do it via internet banking, so that's a great help.

NikNak_3

I just wanted to double check account details before I set up a standing order, and found this on LTSB website;

You asked us:
Can I pay my Lloyds TSB loan online?

Our answer is:
Whilst you can access your loan details through Internet banking you are not able to make payments direct to your loan.

So what i wanted to know was, where you got that account number and sort code from?

jonesMUFCforever

I would like to know that as well!

mrmajika

NikNak wrote: »

So what i wanted to know was, where you got that account number and sort code from?

I'm an LTSB staff member and work in the call centre. We give that out to customers who want to make overpayments to their loan. I also have an LTSB loan and make overpayments this way also.

I can appreciate that some random person on a forum is telling you to send money to a particular sortcode and account number, but I can assure you it does work.

You could send a nominal amount (£1 or so) to check that it works. I do this with all new bill payments and standing orders I set up - just to make sure everything is going as it should.

It takes approximately 3 working days for the amount to credit the loan account.


http://forums.moneysavingexpert.com/showthread.html?t=503950 was my last post on this subject.

5limJim

mrmajika wrote: »

I'm an LTSB staff member and work in the call centre. We give that out to customers who want to make overpayments to their loan. I also have an LTSB loan and make overpayments this way also.

I can appreciate that some random person on a forum is telling you to send money to a particular sortcode and account number, but I can assure you it does work.

You could send a nominal amount (£1 or so) to check that it works. I do this with all new bill payments and standing orders I set up - just to make sure everything is going as it should.

It takes approximately 3 working days for the amount to credit the loan account.


http://forums.moneysavingexpert.com/showthread.html?t=503950 was my last post on this subject.

Hey mrmajika, is it specifically the loans dept you work in, or the usual call centre. I wanted to pay my loan off early, and by the time they added the early repayment charge I'd be better off letting the loan run its course.. Yet I'm told I can make overpayments as often as I like. My monthly payment is £144.68, if the baance on the website says 'x' amount, surely I shgould be able to just pay-off 'x' - 144.68 then when my next loan payment comes off the loan would be settled... or is that too simple?

Thanks


PS: Just noticed my loan balance is in my signature...what a numpty! ;-)

mrmajika

5limJim wrote: »

Hey mrmajika, is it specifically the loans dept you work in, or the usual call centre.

It's the loans department within one of the call centres.

5limJim wrote: »

I wanted to pay my loan off early, and by the time they added the early repayment charge I'd be better off letting the loan run its course.

I'm not sure how this can be, as the early settlement fee should be equivalent to 58 days interest based on the outstanding balance at the time you want to settle, so you should benefit from paying it off early even with the fee.

5limJim wrote: »

Yet I'm told I can make overpayments as often as I like. My monthly payment is £144.68, if the baance on the website says 'x' amount, surely I shgould be able to just pay-off 'x' - 144.68 then when my next loan payment comes off the loan would be settled... or is that too simple?

It is almost that simple -yes. You can make a lump sum overpayment of the outstanding balance minus the last loan payment. On your next direct debit date your full loan amount (in your case £144.68) will come out. The following month you will have a partial payment to make, which will be the rest of the interest. That is, the interest on the £144.68 for the month. This should only amount to a few pounds and pence.

Doing it this way means that you will avoid the fee.

LTSB calculate the interest daily and apply it to the loan account monthly so the balance you see currently is the balance as at 31st January. There will be interest for February (only 5 days worth so far) to be added to this figure.

If you have PPI on the loan, things are a little more complicated, as when paying it off early, assuming you haven't claimed, you have a rebate on the unused portion to get.

I hope all that makes sense.