EBS Loan / Extra repayment

S

sophiecork

Guest
Hello 1st time poster,

I have a question regarding the EBS. I have repayment/annuity loan (2001) for 2k (For 20yrs).

I lodge once a year into my current account and this is drawn down during the year into my loan account.

But, this year I decided to clear some of my debt.

I owed them for Jan 08 the sum of 16.00 euro's.
I told the teller I was paying 16.00 euro and 500 euro into my main loan account NOT current account.

I got the receipt for 16.00 euro and this is what she told me,

SHE COULD ONLY DO ONE TRANSACTION, AND COULD I NOT LEAVE THE 500 IN MY CURRENT ACCOUNT. I WAS FURIOUS, SHE DID NOT TELL ME I COULD ONLY HAVE ONE TRANSACTION.

Is this a ploy for me to leave my 500 in my current account and not to pay off more of my loan (so they can make more money on interest)?

Is it true you can only have one transaction?

Any help would be great, because I am going not going to let them bully me!!

sophiecork
 
sophiecork said:
2k over a period of 20yrs.

...

I owed them for Jan 08 the sum of 16.00 euro's.
Click to expand...
Are you serious or are there some typos here!?!
I lodge once a year into my current account and this is drawn down during the year into my loan account.
Click to expand...
Why do you leave the total annual repayments sitting in a current account presumably earning nothing?
SHE COULD ONLY DO ONE TRANSACTION, AND COULD I NOT LEAVE THE 500 IN MY CURRENT ACCOUNT. i
Click to expand...
And....?
 
Sorry, Loan was for 2,539 euro, I now owe 1,900. I know, bloody stupid or what! So busy never had time to sit down and review my loan, mortgage ect.. But this year I am. Is it true about the transactions? I would like to clear debt this with 2 repayments.
 
Why on earth did you borrow €2.5K over 20 years!!?

I don't understand the question(s?) about the transactions. Maybe you can clarify. You should be able to make capital repayments on the loan to accelerate its repayment if that's what you're asking. As long as the loan is not a fixed rate loan then there should be no penalty for doing this. You will need to make it clear (ideally in writing with written confirmation) to the lender that the additional repayments are intended as accelerated capital repayments.
 


Hello Clubman,

It was a repayment loan not fixed. My original document states 20yrs. However I know I can reduce/draw down loan at any time I choose. The question I am trying to ask, is can I just simply go into my ebs office and repay this loan in two installements. You say I need to put this in writing? Is this why the teller said she could only do one transaction? Many thanks for your replies,

regards, sophiecork
 
You don't necessarily have to put these things in writing but it helps avoid confusion. If you want to execute two transactions - i.e. one regular repayment and one lump sum capital repayment then this should be possible at the counter. I don't understand why the teller would baulk at this.
 
Hello Clubman

Many thanks for your response. I have just telephoned ebs head office, and they told me I will have to put my request in writing and include the payments to head office.

Don't understand the teller either, I assume it might have something to do with comission they could earn, ie..for every customer wishing to pay off a loan early, don't HELP them!! This is just my personal view.

regards, sophecork
 
While I always recommend putting these things in writing I do know that in the past (late 90s) I made several lump sum capital repayments off a mortgage at the counter without doing this although having stated and reiterated that I was making accelerated capital repayments. EBS processed these no problem and certainly without any stalling tactics by any EBS customer service or teller staff.
 
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