Hi,
I have a One Direct loan which I want to pay off this month, 18 months short of a 5 year term. One Direct instructed me to contact GE Finance for a settlement figure, which lo and behold is more or less exactly 18 x the monthly repayment. When I questioned this I was advised there is a fine for early withdrawal. I quoted the actual agreement I have with One Direct (which has no reference to penalties for early termination and in fact refers to Section 52 of the 1995 Consumer Credit Act) to the GE Rep and was finally told after some tooing and frooing they would send me their agreement with OD which "will make their position clear to me"
Am I correct in understanding that this section of the CCA, when quoted in a loan agreement supersedes any agreement two commercial bodies may have with one another, and that fines for early termination cannot be levied unless they are stated on the loan agreement? Section 52 of the act states a Consumer can withdraw from an agreement before the fixed term and shall be allowed by the Creditor a "reduction in the total cost of the credit under the agreement calculated"
I have submitted written intent to terminate the loan to both GE and OD requesting a settlement figure and enclosed copies of my loan agreement along with a print-out of the act, but as I imagine it will be at least a few days before a response is received I was hoping for some advice or first hand experience other AAM members have on a similar issue?
Thanks,
I have a One Direct loan which I want to pay off this month, 18 months short of a 5 year term. One Direct instructed me to contact GE Finance for a settlement figure, which lo and behold is more or less exactly 18 x the monthly repayment. When I questioned this I was advised there is a fine for early withdrawal. I quoted the actual agreement I have with One Direct (which has no reference to penalties for early termination and in fact refers to Section 52 of the 1995 Consumer Credit Act) to the GE Rep and was finally told after some tooing and frooing they would send me their agreement with OD which "will make their position clear to me"
Am I correct in understanding that this section of the CCA, when quoted in a loan agreement supersedes any agreement two commercial bodies may have with one another, and that fines for early termination cannot be levied unless they are stated on the loan agreement? Section 52 of the act states a Consumer can withdraw from an agreement before the fixed term and shall be allowed by the Creditor a "reduction in the total cost of the credit under the agreement calculated"
I have submitted written intent to terminate the loan to both GE and OD requesting a settlement figure and enclosed copies of my loan agreement along with a print-out of the act, but as I imagine it will be at least a few days before a response is received I was hoping for some advice or first hand experience other AAM members have on a similar issue?
Thanks,