Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

    • tjw_77
    • By tjw_77 7th Mar 18, 7:24 PM
    • 2Posts
    • 0Thanks
    Credit Agreement Query
    • #1
    • 7th Mar 18, 7:24 PM
    Credit Agreement Query 7th Mar 18 at 7:24 PM
    Can someone provide any advice on this issue please?

    I took out a loan last year and am considering early settlement to consolidate all my loans into one . I queried the calculation of the figure as the early repayment charge is different (higher) to what is stated in my credit agreement. The company are telling me that the early repayment section in my agreement relates to if they were to claim compensation - but surely that is what an early repayment charge is about?! The person I spoke to could not confirm exactly what circumstances compensation would be claimed by them, when I pressed her on it. They said that they will send me the correct information detailing early repayment charges, but this has never been sent to me before (only the agreement which I already have - and signed). I feel this is completely wrong, and that they should not be able to make charges based on something that has never been sent to me - when I have a credit agreement that does have an early repayment section! The person I spoke to said that it would have been advised to me on the telephone when I took out the loan, to which my response was to ask if I am really expected to remember every detail of what was said to me - verbally - when this should be the point of the credit agreement - to have a written point of reference. I would just like some advice on this, and what redress I have/what next steps I should be taking should they persist in what they are saying. The irony is that I was planning to consolidate into a loan with a company part of the same group, but this is really putting me off!
Page 1
    • zx81
    • By zx81 7th Mar 18, 7:28 PM
    • 16,853 Posts
    • 17,865 Thanks
    • #2
    • 7th Mar 18, 7:28 PM
    • #2
    • 7th Mar 18, 7:28 PM
    The agreement should spell out the early repayment charges, which are typically 2 months interest. Check the agreement again carefully.

    Even if there are charges, don't let it deter you from paying it off, as you will save on future interest.
    • tjw_77
    • By tjw_77 7th Mar 18, 7:33 PM
    • 2 Posts
    • 0 Thanks
    • #3
    • 7th Mar 18, 7:33 PM
    • #3
    • 7th Mar 18, 7:33 PM
    Thanks zx81 - I'm not objecting to paying charges, just the ones that are stated in my agreement. I have checked and double checked the agreement and it states something different to what they are now stating
    • bazzyb
    • By bazzyb 7th Mar 18, 7:56 PM
    • 1,193 Posts
    • 3,274 Thanks
    • #4
    • 7th Mar 18, 7:56 PM
    • #4
    • 7th Mar 18, 7:56 PM
    Can you give some more indication of what you were expecting to pay and what they are trying to add on as additional 'charges'? It should be pretty clear - if you are settling they can add a maximum 58 days worth of interest on to the balance.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,990Posts Today

6,015Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line?

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin