Nice result!

Cat

The only way I have established to avoid their charges is to accept their reduced settlement for new business, which saved me £400. When they asked how much I would like to re-borrow I told them £50 to be repaid in one year!

At this stage they realised it would cost them more to administer and they agreed to accept the reduced amount anyway. One letter of complaint has saved me £400.

Lesson learnt. Thanks,

Neil

In my case, the high repayment figure was due to something called 'rule of forty eight' (or something equally daft) which allows the bank to claw back some of the profit it would have made in the case of an early settlement. As I understand it, it is to allow them to offset their admin costs.

I still think it stinks! And I suspect that it will soon be (or may be already) no longer usable on new loans.

If that is what is bumping up your figure, then, I am afraid I don't know of any way around it - believe me, I tried.

Cat

do you have payment protection insurance on the loan?

If so, you need to cancel it first and then get them to recalculate the settlement figure.

I had the same thing with Barclays, they sorted everything out (it was the payment protection insurance) after I questioned the settlement figure.

I borrowed £17,900 over 3 years with a balloon payment. In 12 months I have repaid almost £3,000 and recently received a settlement figure from the company of £17,600. I have questioned the settlement figure to be told that they will only reduce it for 'return business'. Ihave cancelled my DD and am sat on the money to repay the company but am interested if anyone has any tips for challenging the company and reducing the settlement?