Banks. ( not Gordon )

[EdwardCurrent]

Hello All,

I have a business loan, and I am always failing to make payments etc etc. It is a pain in the r's because of charges and taking the payment from my personal account.
If I were to pay the outstanding amount, would I be able to bargain with the bank and get a bit knocked off ????

Hope someone can advise please ?
Thanks.
Ed.

 

[Stulz]

You would save on the interest that would otherwise be paid on the account, and if you pay it in full, perhaps you may be able to negotiate on some of your charges.

The only people that can truly answer this is your Business Bank Manager.

However, regardless of the saving of money, consider the implications of all these late payments on your credit history, paying it off may pay dividends that you have not considered.

Talk to your Bank, if your not getting anywhere, talk to another Bank about an account, and tell your manager this..usually does the trick.

 

[Deluks]

Where have you been living the last 6 months??? Get yer money back!


http://www.moneysavingexpert.com/reclaim/bank-charges

 

[securespark]

I will do that soon and would advise everyone to. The banks are caving in & paying customers off because they don't want to go to court.

However, back to the OP. Are there penalties for early settlement? Often there are, because the bank will not make as much money from you if you pay it off quicker...

 

[pjholybloke]

Essentially it depends on how the interest on the original loan was applied. Some loans have all the interest added upfront (bit sneaky), in which case you wont be able to negotiate any discount.

Most loans though have interest added on a monthly basis and if this is the case, you will save yourself the accruing monthly interest over the remaining life of the loan, which could be significant.

Also as already stated check for any early settlement penalties.

Out of interest - has anyone missed a payment on a Tradepro card? Nearly died when I saw the late payment fee - £30.00!!

 

[Stulz]

Guys, the system of charges on Business accounts is not covered by the same legislation that caused the OFT to make it's landmark announcement that has led to people claiming charges back on PERSONAL accounts.

The OFT are still in the process of reviewing the charges applied to Business accounts, but they are not due to publish any findings until the end of the year at the earliest.