My partner has taken out a 2 year personal loan and they assured her that if she wishes to repay early that she would only be charged a small penalty (2 months interest i think).
She has taken out the "payment protection" option, which is about 12% of the loan amount, but if she were to repay in full after only a few months is it normal to insist that the full 2 years worth of insurance premium are paid or will they only apply it pro-rata (ie about 0.5% a month)?
She mentioned to the sales person that she expects to repay in full after only a few months and they did not warn her about having to pay the full 2 years insurance if she repays early, and the "small print" does not say much about this aspect, so presumably she could claim the insurance was "mis sold" if they insist on payment of the full 2 years insurance even though the loan is repaid early.