There should be adequate transparency. The contract documentation and any
customer booklet or leaflet should set out clearly the method of calculation of the
settlement figure and any redemption charges, and should explain the reasons for
these together with the nature of the costs which they are intended to cover. They
should indicate the settlement figure and redemption charges that would apply, on the
basis of current
interest
rates, at different points in the contract, including after each of
the first five years of the loan. These details should also be included prominently in
any documentation sent to the borrower before the conclusion of the loan setting out
the borrower’s right to withdraw from the agreement. The borrower should be fully
aware before entering into the agreement of the implications of settling early.
63 Lenders should provide promptly to the borrower, on request at any time, a clear
written statement of the settlement figure and redemption charges that would apply at
any particular point in the contract. They should respond promptly to any reasonable
request by the borrower for an explanation of the figures or of the basis on which they
have been calculated and derived.
http://www.oft.gov.uk/shared_oft/rep...t/oft192v2.pdf
GE Money - Settlement fees !!! Disgusting
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