Paying of loan

littleminx_2

I am in a position to pay of my loan and rang my loan provider to ask how i go about it.They told me i had to do this through my bank by something called chaps,any how i said ok can we do this today and was told yes but it would cost me £20 to do so,i refused to pay and told them there must be another way to pay but they said i had to contact my loan company and ask them.Rang them just now and they told me i can send a cheque,not an option as it is a large amount of money,or i can go through my bank using bacs.I have just spoken to my bank and they have said they do not use this method,but i am sure i have used this before.Can any one help with this?

Paul_Herring

The one method not mentioned so far is Standing Order.

For this you require for the debt
1) a sort code,
2) account number,
3) (possibly) bank name/address and
4) a reference for a payment to be made. You also require
5) a settlement figure for your debt.

You require these details from the place that holds your debt, not your bank account.

You then go to your bank with these details (or online if you have access) and use them to set up a standing order. You should not be charged for this.

A possible stumbling point is if the amount you're trying to pay exceeds the 'floor level' of the bank (this isn't a set figure but some have £10K as the uppper limit - your bank's may be lower. If this is the case, you will probably have to go in-branch with ID to be on the safe side; passport/driving licence/proof of address etc.)

littleminx_2

Many thanks for your advice.
I don't understand why my bank cannot use Bacs though,i thought all banks used this,and i am sure i have used this with them before.Any way i will see if i can do the standing order.
Thanks

littleminx_2

I have just contacted my bank and they say i cannot do a standing order as this is for regular payments :mad: All i want to do is pay of my loan,but its proving to be a hard task!

YorkshireBoy

You can do a BACS payment yourself (subject to any limit imposed by your bank) by either online or telephone banking.

You should be able to set up a standing order for the payment in branch...and then cancel it after the first payment is made. However, the bank may 'see through' what you're trying to do due to the amount.

If all else fails, how soon will you rack up the £20 in interest before you bite the bullet and pay for CHAPS?

I don't understand this comment...

"they told me i can send a cheque,not an option as it is a large amount of money"

Could you explain?

littleminx_2

A neighbour of mine warned me against this as she sent one via post and it went astray,so it has put me of doing so.

YorkshireBoy

littleminx wrote: »

A neighbour of mine warned me against this as she sent one via post and it went astray,so it has put me of doing so.

Hundreds of people a year are knocked down crossing the road. Do you still cross the road?

Send the cheque.

Paul_Herring

littleminx wrote: »

I have just contacted my bank and they say i cannot do a standing order as this is for regular payments

They're being obtuse. The loophole is to create a 'regular' standing order that finishes on the same day as the first payment, resulting in...

One payment.

Which bank is this please?