Secured Loan Early Repayment Fee (igroup)

[paul]

Hi,

 

I had a secured loan of which I repayed it early (igroup) and had charges of around the 2000 mark.

 

although this was in the contract in some way or another can anybody advise if this would be deemed excessive?? as per the bank charge scenario

 

thanks

 

Paul

[BankFodder]

The whole area of recovering excessive bank charges has really to do with charges which are applied by way of a penalty.

If the charges you incurred were not imposed by way of a penalty then there may be little than you can do.

You need to say why these charges were incurred.

If you had entered into your contract without the scale of charges having been agreed in advance and instead you merely agreed to be charged - the charges to be notfied by the lender later on, then you will probably be able to argue that it was implied into the contract that the charge should be reasonable. You will then have look at what it was which the lender is charging for and try to form a judgment as to whether they might be said to be reasonable. If you still feel that the charges are excessive then you could start thinking of recovering them

If it was clear before the contract was made what the charges would be for the service which you received then it is extremely unlikely that you have any basis for any kind of claim

[horace4831]

I too had a secured loan with iGroup and on the several occasions I looked into early settlement it was discovered that by the time I had paid their various extra charges is was hardly worth doing! Typically, as you say, around an extra £2000!..........I can only agree with Bank Fodder's reply above- you will have to check the (very) small print in your Terms & Conditions. Sorry this is only sympathy and not help-but if Bank Action Group had been around at the time I am sure I would have had the knowledge,advice and courage to tackle them over this, also my broker-who told me at the time that the advantage of this type of loan was that there was NO PENALTY for early settlement! Good luck if you DO!

[paul]

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