Paying off Lloyds TSB loan early - advice please!

DAFFY_DAVEY

Hi everyone. A bit of a newbie on here so sorry if this is a repeated thread!

I've got a loan with Lloyds TSB which i am paying off at £360 per month. The outstanding balance at the moment is just under £7690. Fortunately I am now in a position to pay off the loan early but they will charge me 1 months interest (approx. £100) if i do that.
I rang them today to see what would be the most i can pay off the loan without incurring a penalty. I suggested paying off so much that would leave me with one final payment of £360 to pay as normal and that would then close the loan but the advisor "couldn't say" whether that would leave me with a penalty or not!
I personally felt that she knew that this was a way round it but wouldn't say.

Has anyone any good advice?

Thanks, Davey.

mrmajika

DAFFY_DAVEY wrote: »

I personally felt that she knew that this was a way round it but wouldn't say.

Has anyone any good advice?

It's always hard to tell if the phone adviser is genuinely a bit thick / misinformed or is hiding this 'trick'.

Either way, you won't get charged the early settlement fee (It's 58 days interest BTW) so long as you allow the last payment to be collected via direct debit.

DAFFY_DAVEY

mrmajika wrote: »

It's always hard to tell if the phone adviser is genuinely a bit thick / misinformed or is hiding this 'trick'.

Either way, you won't get charged the early settlement fee (It's 58 days interest BTW) so long as you allow the last payment to be collected via direct debit.

So basically, if i rang up tomorrow and paid the full amount less £360 via debit card then on the 15th of this month when the £360 goes out via d/debit that's it. The loan's paid and no charges:D !

Will see what happens tomorrow!!:cool:

Thanks,Dave

CLAPTON

mrmajika wrote: »

It's always hard to tell if the phone adviser is genuinely a bit thick / misinformed or is hiding this 'trick'.

Either way, you won't get charged the early settlement fee (It's 58 days interest BTW) so long as you allow the last payment to be collected via direct debit.

why is this?

mrmajika

Yes. overpayments are penalty free. To clear the loan off completely incurrs an early settlement fee of 58 days worth of interest. So long as the last amount is collected by direct debit, you won't incurr the fee.

If you leave all but your last direct debit amount in place then the DD will come off as normal. The following month there will be a few pounds and pence of residual interest by direct debit to finish off the loan.

g553

Thanks guys.

They wanted over £80 to get out of their already extortionate loans (talk about kicking a man when he's down). I asked if there was anyway to get out of it they said no, so I hung up. A quick google and I found this gem, and phoned them strait back and paid the whole loan off minus a months direct debit and a pound!

In less than two minutes this site saved me £80, thank you!

Rupert_Bear

I had a loan from them a few years ago for something like 5000 pound stg.
Wanted to pay off early and sent them 4999. I then asked for a settlement figure and was based on the 1.00 outstanding. Worked for me.

dickieg

Rupert_Bear wrote: »

I had a loan from them a few years ago for something like 5000 pound stg.
Wanted to pay off early and sent them 4999. I then asked for a settlement figure and was based on the 1.00 outstanding. Worked for me.

I did this also and is quite within their guidlines if you look at the small print, i went in asked for a settlement figure and then left £25 to pay just in case they worked it out wrong and i over paid (thus meaning id paid it off fully), although i cant see anything wrong with just leaving a pound

jonesMUFCforever

You can't pay a LTSB personal loan by debit card as far as I know.
Go into a branch ask for a redemption figure; pay this off minus say £100 and let the d/d go through for the last payment. Any surplus will be refunded and you by pass the ERC.

g553

Update: I just phoned them to try and pay it off but they still wanted that silly amount for the settlement fee, they said (reluctantly) that the settlement quote lasts for 30 days.So now I can either wait until the 26th and get a new one or just wait until the 5th when the next direct debit will easily clear it. It's a shame as I wanted to get this loan behind me, but doing it this way I'm still saving nearly a months interest.

zooloo66

DAFFY_DAVEY wrote: »

Hi everyone. A bit of a newbie on here so sorry if this is a repeated thread!

I've got a loan with Lloyds TSB which i am paying off at £360 per month. The outstanding balance at the moment is just under £7690. Fortunately I am now in a position to pay off the loan early but they will charge me 1 months interest (approx. £100) if i do that.
I rang them today to see what would be the most i can pay off the loan without incurring a penalty. I suggested paying off so much that would leave me with one final payment of £360 to pay as normal and that would then close the loan but the advisor "couldn't say" whether that would leave me with a penalty or not!
I personally felt that she knew that this was a way round it but wouldn't say.

Has anyone any good advice?

Thanks, Davey.

hi would like some advice on my loan please
i have a lloyds tsb loan too
i borrowed £2000 and am told on agreement 1/4 £1622.82 which is next month
would this include the early payment fee if not is there any way i can get round it?
thank you:)