Are early repayment charges legal?

pinkydinkydo

Hi everyone any advice would be great, we are lucky enough at the moment to have some spare money so in true MSE manner we decided to pay off some debt. The said debt is a window loan which we took out over 4 years ago. The balance on the account is £4600 but to pay this off they want us to pay £5400 an early repayment charge.

This was not detailed in any of the agreements we signed is this fair? Do we have to pay it. The debt is with First National has anyone had any dealings with this company?

So annoyed we just can't afford to pay off this extra, i feel like we're being punished for trying to get away from these sharks in the first place:eek:

ManAtHome

Dunno much about First National, but probably worth a call to Citizen's Advice - if it's as dodgy as some of the "changeable" mortgage exit fees, I'm sure you won't be the first.

pinkydinkydo

Thanks for that, i will give them a ring tomorrow.