Brendan Burgess
Founder
- Messages
- 52,125
Can't see how this could be in the consumers interest in any way, shape or form. In the case of fixed rate, there's a logic to it - but not in the case of variable rateCould there be any advantage to consumers in allowing early repayment penalties on variable rate loans?
Surely introductory discounts only serve to cloud the consumers assessment of what the actual cost of the loan is - particularly if that also involves penalty payments for early loan payment?In the UK, lenders often give loans with discounts for the first few years, but charge an early repayment penalty. I don't like introductory discounts, so leave the current system as is.
Surely introductory discounts only serve to cloud the consumers assessment of what the actual cost of the loan is - particularly if that also involves penalty payments for early loan payment?
But I think that this is an issue for the lenders and not for the legislation.
Hi Sid
I don't think that there is any advantage, but it's worth asking the question. Sometimes, a restriction which favours some consumers, hurts others.
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