Loan discharge formula

[ein]

Fixed Rate Loan only

2.2 Where the Customer wishes to discharge (whether partially or in full) his obligation to the Bank, he may do so on giving 30 days notice in writing to the Bank (or such lesser period as may be agreed to by the Bank). At the time of such discharge, a reduction in the total cost of credit shall be allowed in accordance with any formula used by the Bank and approved pursuant to Section 52 Consumer Credit Act,1995 (or any amendment or substitution therefor).
2.3 In the absence of the formula referred to at clause 2.2 above or, in the event of the application of the formula not making good to the Bank the costs associated with any early discharge or partial repayment(s), the Customer shall pay to the Bank a sum in respect of interest equal to the amount as calculated by the Bank of all losses, costs and expenses incurred by the Bank associated with such early discharge, partial repayment(s) or conversion.

Above is a quote from the BOI personal loans terms & conditions. I have checked out the Section 52 Consumer Credit Act, 1995 and it has no formula, surely when the bank refrence such an act they know what is contained and what is not? Are the bank not obliged to let the borrower know the formula that calculates the loan discharge costs?

 

[huskerdu]

My reading of clause 2.2 is that the bank can use any formula that does not break any rules in the credit consumer act.
It does not state that the formula is in the credit consumer act.

Have you asked the Bank what the formula is. I would complain if they refuse to divulge it, but you don't yet know if this is the case,.

 

[ein]

My reading of clause 2.2 is that the bank can use any formula that does not break any rules in the credit consumer act.
It does not state that the formula is in the credit consumer act.

Have you asked the Bank what the formula is. I would complain if they refuse to divulge it, but you don't yet know if this is the case,.

I have not asked the bank but will today.

Where in the credit consumer act does it state the premeters of such a formula? I am at a loss to find this information.