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paying back loan before first installment due


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got a loan but now have enough money to pay it back in full before first installment.

is it true that i only have to pay the money i borrowed and no interest




borrowed 10g 14 days ago

first payment due in 14 days

got 10g to settle loan now


i think it's to do with the cooling off period but can't find any info on it


any ideas

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I would doubt if it could be dome without some form of charge being levied by the lender but yiur best bet is to contact them to see what they say or try and read the small print on the loan agreement.



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Might section 71(2) of the CCA74 be what you are thinking of?


71 Cancellation: repayment of credit

(1) Notwithstanding the cancellation of a regulated consumer credit agreement, other than a debtor-creditor-supplier agreement for restricted-use credit, the agreement shall continue in force so far as it relates to repayment of credit and payment of interest.

(2) If, following the cancellation of a regulated consumer credit agreement, the debtor repays the whole or a portion of a credit—

(a) before the expiry of one month following service of the notice of cancellation, or

(b) in the case of a credit repayable by instalments, before the date on which the first instalment is due,

no interest shall be payable on the amount repaid.

(3) If the whole of a credit repayable by instalments is not repaid on or before the date specified in subsection (2)(b), the debtor shall not be liable to repay any of the credit except on receipt of a request in writing in the prescribed form, signed by or on behalf of the creditor, stating the amounts of the remaining instalments (recalculated by the creditor as nearly as may be in accordance with the agreement and without extending the repayment period), but excluding any sum other than principal and interest.

(4) Repayment of a credit, or payment of interest, under a cancelled agreement shall be treated as duly made if it is made to any person on whom, under section 69, a notice of cancellation could have been served, other than a person referred to in section 69(6)(b).

Nationwide - Prelim sent 02/07 - MCOL filed 04/07 CHARGES SETTLED IN FULL!!

Woolwich- Prelim sent 04/07 - Offered 90% - 06/07 accepted

MBNA - Prelim sent 02/07 - CCA request sent 03/07 - CCA reply (illegible + no T&Cs) - DCA sent packing - Restons now trying - gone quiet

Citicard - Prelim sent 02/07 - CCA request sent 04/07 - replied 04/07 No contract & not enforcing!- passed to 1st Credit- gone quiet

Egg - Prelim sent 02/08 - 3 letters - full offer 03/08 SETTLED IN FULL!!

(All starry, rep, clicky thingies gratefully received!)

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looks like i've borrowed 10g for two months for free then !!!!


specifically said to bank i wouldn't pay arrangement fees as i thought something like this may apply


thanks for the info from the CCA

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Did you sign the paperwork at home or on the lenders premises? I'm sure I have read somewhere that there is no right to cancel / cooling off period if you sign on their premises ( so always a good idea to take paperwork away with you ).


I will try to look it up & post back but am at work so a bit tricky sometimes!! :)

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There is a statutory right to cancel under the Consumer Credit Act 1974 providing:

  • the client must have signed the agreement anywhere other than the trade premises of the credit provider or trader, for example, at home

THis means that you don't appear to have a STATUTORY right to cancel. You may still have a CONTRACTUAL right to cancel but if this is the case it would be provided for in your original credit agreement ( may still be worth checking ).


So I think there may be some kind of redemption cost - hope this helps

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