Souther Pacific Personal Loans / Mortgages Ltd

[ayeaye]

Back in 2003 was in a position where had to take a second loan out on the house to repay some debts that were outstanding. The broker we used put together a loan with Southern Pacific Personal Loans / SPML.

 

Recently remortgaged and in a much better financial situation, so repaid the SPPL secured loan.

 

The redemption charge was calculated as 6% of the balance outstanding at date of repayment.

 

Does this constitue an unfair clause and be grounds for reclaiming the redemption fee back - it's only £800 (as it was a small secured loan, £13K which is covered under the CCA - the credit agreement has regulated by the CCA 1974 printed on it) but it's the principle.

 

Cheers

[zootscoot]

If its governed by the CCA, Regulations specicify what they can and can not charge on redemption. There is a complex formular that is applied and differs depending on the year taken out. If you contact Trading Standards they will be able to tell you if the redemption figure is correct.

 

Hope this helps

 

Zoot

[ayeaye]

Cheers - will see if I can get some info from them.

 

The credit agreement has a sliding scale of redemption repayments - 6% if redeemed within 5 years from date of agreement, 5% within 6 years etc. etc.

 

So this looks like it's a fixed percentage irrespective of whether this would be the true costs/losses incurred by redeeming early.

[zootscoot]

Check it out with Trading Standards as if it compies with the Regulations the courts will be unable to strike the clause down as a penalty.