Secured Loan Issues

[jaime]

Hi there,

 

Last year, I closed a secured loan but incurred an early settlement charge of around £3000 or so for a total loan of £60k. This was incoporated by the mortgage, but I was mortified by the penalty.

 

It does indeed state in their terms & conditions that there is an early settlement charge, and when I initially challenged it, they did say that the calculation had been wrong and did reduce it, albeit by a negligible amount. Now, last night I listened to Martin Lewis who was saying that Mortgage lenders need to PROVE they can justify the penalty - is there a similar situation here? What can anyone suggest - is it a matter for the small claims court, does anyone have any experience?

 

Any help would be appreciated.

 

Kind regards,

 

Jaime.

[raffy]

within that three thousand,did you take out an insurance with them,as ive found on a previous s,loan within the amount to redeem early is the insurance to so when this has been finalised and paid you then cancell any insurance .make sure you do this as i have found its us who has to ask for any monies sent back,

[jaime]

As I understand it, the fee is purely a penalty. I don't believe I had insurance with them.

[raffy]

if insurance wasnt included,try to look more at the time scale of having the secured loan.mine lasted 8 months before inc with morg,the charge for early redemption was 6,0000 on 7,500.but,had an ins in with that which i am due back,thats why i mensioned check through your agreement with them,