Recently I borrowed 25000 as a secured loan via a large, presumably reputable company, in order to pay off my credit cards. The interest rate I was offered was 9.5%, although not the best, was a lot lower than I was paying on the cards.
I may soon may be able to pay off the loan in full due to an inheritance.
When I contacted the loan company, I was told that if I paid off the loan,
they would charge me 6 months interest plus about 270. The best they could
offer without charges would be to pay off 50% of the loan, although even
then the monthly payments would remain the same. Are these offers legal?
(I was not informed of these conditions when I took out the loan, although
maybe it was buried in the small print somewhere). Can I not simply pay off
the outstanding debt and tell them to get stuffed or is there any way to get
around this problem?
- posted 12 years ago