Remember that if you change your mind you are under no obligation to proceed

Remember that if you change your mind you are under no obligation to proceed

You will have 28 days from the day after you contact us to make your payment. If you don’t make the payment within this timeframe you will need to contact us again so that we can provide you with up to date information – you then have a further 28 days from the day after this date to make your payment.

You can request a Partial or Full Early Settlement by either contacting us on 0800 169 2000 or writing to us at Customer Services Department Post Office Loans Customer Service Team

• If you want to make a Partial Early Settlement you can choose to either reduce the term of your loan or your monthly repayment amount. If you ask us, we can tell you how both options would affect you to help you decide what to do. If you don’t tell us which option you want to take, we will automatically reduce your term meaning your monthly repayment would stay the same.

• If you want to make a Full Early Settlement we will tell you how much you need to pay us to clear your remaining balance completely and then confirm this to you in writing.

• If you have any unpaid charges or arrears on your agreement, these will be cleared first and then the remaining amount will be used against the full or partial settlement to your loan.

· By bank transfer, once a settlement quote has been obtained. You must include your agreement number as a reference on your payment, so that we can correctly apply the payment to your loan.

When calculating your rebate we use a formula as prescribed by the Consumer Credit (Early Settlement) Regulations 2004 which takes into consideration information such as how much you are repaying each month, how long you still have to pay on your loan and the settlement date

Before you take out a loan with us we will calculate what interest charges you need to pay based on the applicable fixed rate, the amount borrowed and the original term of your agreement. The interest is added onto the amount you’re borrowing and the total is then divided by number of months over which you have chosen to repay your loan – this gives you your monthly repayment amount. If you make an Early Settlement you will be entitled to get some of this interest back and this is known as a rebate.

• If you’re making a Partial Early Settlement we will deduct the rebate amount from your remaining balance. This will be taken into consideration when calculating what your new monthly repayment amount or new final payment date will be, as applicable*.

• If you’re making a Full Early Settlement, we will deduct the rebate from the amount you need to pay to clear off your loan balance.

The settlement date determines how much the rebate will be and, if you’re making a Full Early Settlement, how much you owe us. The settlement date we use is as follows:

This means that when we calculate your rebate we will use a date which is 58 days from the date you notify us. The regulations also entitle us to claim compensation from you in certain circumstances if you make an Early Settlement, however, we don’t do this or apply any other charges or penalties.

If you choose to reduce your contractual repayment amount this will take effect 58 days from the date you notify us, so for example, if you notified us on 1st October and your normal monthly payment date is the 15th of each month, then your first reduced payment would be on 15th December.

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