G E paid off at last, but do they owe us money.

[bach]

I have now retired and have the time to start to sort out some of the finance problems, however would really appreciate some help with this one.

We had a secured loan with GE money for £51.000, which we took out on 24th February 2006. We have now paid it back (4th April 200 and no longer have anything to do with GE Money (thank you God).

The settlement letter shows that we have paid
"income on early settlement" of £3,497.85.

I have just come across an artical from the Independent dated
29th May 05, which states that

"However,changes to the Consumer Credit Act means that, on Tuesday, the Rule 78 will be abolished on all new loans. Providers will now only be able to charge a maximum of two months interest- as opposied to sums that have sometimes been much higher.

The reform will apply immediately for new borrowers. ( Thats us )
Exsisting ones who have loans for terms of 10yrs or less and want to settle early, will not benifit until 2007. Those with loans for longer than 10yrs will not be covered untill 2010."

Can anyone please confirm that I am reading this right, and that we should not have been charged £3497.85 for the early settlement of this loan, but only 2 months interest.

Thanks again for all the wonderfull help and support freely given to me on
this site, and will most definatly make a donation if I do have any money to come back.
Lynn

[not so goldengirl]

well it sounds right to me and if that is the case then i have been done too i had a loan for £18000 with them then a couple of years later needed some more so had to get another loan so the broker told me i could not do a second charge on my home with the same company and they paid off ge and got me a new secured loan with them cant remember what i paid in charges but it was about £1800 i think. I also think i should claim it back what do you think?

[mcfadwmc]

this did come into force on 1st june 2005 but your loan would not be covered i think as it only applies to loans under 25k. not 100% sure though and don't know what rules would apply if these don't.

[not so goldengirl]

my loan was under £25000 it was for £18000