Telf
 |
For a fixed term loan, yes. Sorry. Only revolving credit (Credit / store cards) can be paid off withou penalty.
Complain to the bank, but you are unlikely to get anywhere.
Good luck. |
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Kerry K
|
Yes it is allowed, if it is in the terms of the loan that there will be an early redemption fee, then it must be paid I am afraid. You could query it with the bank but I don't think they will waive it as they are missing out on 3? 4? 5? years of interest - they have to make money from somewhere, unfortunately it is us wee people who lose out. |
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Big Bad Boris Mayor of London
|
Yes it's in the small print READ before you sign for the loan.
Early settlement doesn't mean avoidance of the interest |
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webs77
 |
yes, threaten to switch to another bank |
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Julzy
 |
yeah, it sounds a bit excessive though , I'm guessing Lloyds Name and shame them so other's avoid them |
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Adam B
|
If it's in the contract, they can and will charge it. Banks are in the business of making money off the little people, and this is just one example of how they do it. They make hundreds of millions of dollars every year by charging those pesky $35 over-draft fees on $2 purchases. It's a big scam, but they're good at it. |
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Silke
|
If it's in the small print it can. |
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Health Freak
|
they can do, when loan companies advertise online, they usually say something about early settlement fees.
Try and speak to someone, like in a one to one room or something, show them that you are a good customer and hopefully they should waiver some of the fees |
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alatoruk
|
if its in the small print, then yes
if the £500 is for the loan insurance then you will get the unused proportion back. |
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a c
 |
Yes if it was in the contract. |
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Hotstomper
 |
Sorry, but yes they can. You should have been advised of this when you took out the loan, or at least read the Loan Agreement properly. |
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The Fat Controller
 |
yes if it was in the terms and conditions that you will have signed when you you out the original load . you could ask them to waive the charge or possibly reduce it ... it wont do any harm to ask |
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nelhel96
|
lol yeah unbelievably they can ...we just paid 2,500 pounds for settling mortgage early! |
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Autumn
|
Depends on what was in the original loan contract. Some lenders include penalties for early re-payment. Is the 500 interest, or just fees? Read the loan contract. If it is not mentioned in the contract, go to the bank and ask an officer there. One month is a relatively short time for a bank to carry a loan. They may have a minimum amount they are allowed to charge in interest or other fees. |
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Sachin S
|
Hi,
The answer is YES.
Banks do have such kind of policies because your EMI depends on the amount of money you have taken from the bank, then on the money bank puts some interest which is calculated by dividing the total sum+interest.
Now from somewhere you got a big amount of money and u thought of clearing your loan.
Here what has happened is you have paid the total sum but what about the interest the bank was going to get form your repayment.
The bank is not going to let it go easily, so they have come with this policy of charging the amount as penalty.
This is completely legal.(Procedure by RBI)
I hope u understood.
Bye |
|
za
|
Banks can, and usually do, charge whatever they want. They are banks. B A N K S = licence to extort money.
Read the small print. If it's there then you agreed to it (always read the small print first!) and ought to pay.
You could try appealing to commonsense and decency, but remember : it's a BANK! |
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W W
|
I know it´s a rip off but what can you do ? That´s how they get so rich. Sorry but yes they can. |
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