Your Right to Settle Early

Under Section 94 of the Consumer Credit Act 1974, you have the right to repay your loan in full or in part at any time before the end of your agreement. If you choose to settle your loan early, your settlement figure will be calculated in accordance with the Consumer Credit (Early Settlement) Regulations 2004. This means you may be entitled to a statutory rebate of future interest that would otherwise have been payable if the agreement had continued to its full term.

Loans 2 Go does not charge any discretionary early settlement fees or exit penalties.

Requesting a Settlement Figure

Before making a settlement payment, you must obtain a settlement figure from us.

You can request a settlement figure by:

• Logging into your online customer portal
• Calling 0330 400 6000
• Emailing [email protected]

Your settlement figure will show:

• The amount outstanding under your agreement
• Any statutory rebate of future interest
• The amount required to settle your agreement in full
• The date until which the figure remains valid

Receiving a settlement figure does not obligate you to settle your agreement. If you decide not to proceed, simply continue making your contractual payments as normal.

Validity of Settlement Figures

Settlement figures are normally valid for 28 days. If payment is received after the validity period has expired, you will need to request an updated settlement figure.

Any overpayments received while a valid settlement figure remains in force will be refunded, provided the full settlement amount is received before the expiry date.

How to Make a Settlement Payment

You can make a settlement payment by:

• Logging into your online customer portal
• Calling 0330 400 6000 and paying by debit card
• Bank transfer (BACS/Faster Payments)

Bank Details

Please always quote your agreement number as the payment reference. Failure to do so may delay allocation of your payment.

Keep Payments Active Until Settlement Is Confirmed

Your credit agreement remains your legal responsibility until we confirm in writing that it has been fully settled.

Until you receive written confirmation:

• Continue making your scheduled payments as normal.
• Missed or late payments may be reported to credit reference agencies.
• Your agreement will not be treated as settled until all outstanding amounts due have been received and allocated.

How Early Settlement Is Calculated

Settlement figures are calculated using the statutory actuarial method set out in the Consumer Credit (Early Settlement) Regulations 2004.

The calculation takes into account:

• The remaining balance on your agreement
• Any rebate of future interest to which you are entitled
• Up to 58 days’ interest where permitted under the Consumer Credit Act 1974

The amount you save by settling early will depend on when during the term of the agreement the settlement takes place.

Understanding Interest and Capital Repayments

Each monthly payment you make consists of both:

• Capital (the amount borrowed), and
• Interest (the cost of borrowing)

As your balance reduces over time:

• The interest element of each payment decreases, and
• The capital element increases.

This means that the proportion of each payment allocated to interest and capital changes throughout the life of the agreement.

Illustrative Example

The example below is based on:

• Loan amount: £999.00
• Term: 18 months
• Monthly interest rate: 11%