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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 71053
Experience:  Over 5 years in practice
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I am trying to settle a loan and Ocean Finance have given me

Customer Question

I am trying to settle a loan and Ocean Finance have given me a settlement figure of £23,227.16. The original loan was for £24,095.00 and I have already paid £10,835.76 leaving a balance of £13,259.24. I have offered them a settlement deal of £15,000.00 to cover any additional paperwork and they have refused, are they allowed ? The reason I need to settle asap is my partner is going into surgery on the 10th June to have cancer removed and I don't think we are going to be able to make the payments while he is out of work. Thanks
Submitted: 4 years ago.
Category: Law
Expert:  Jo C. replied 4 years ago.

Thank you for your question . My name is Jo and I will try to help with this.

In order to give you answer tailored to your circumstances I will need to ask you some preliminary questions so that I can consider your position from all angles.

How can I help with this loan?
Customer: replied 4 years ago.


Is there any laws to confirm that we can close the loan with the figure we have supplied due to the medical situation that is going to occur as the loan is secured on our house

Expert:  Jo C. replied 4 years ago.
Thanks for the information.

I do completely see why you are aggrieved about this but ultimately we are all hampered by the law.

I know this isn’t going to be the answer you want to hear, and it’s certainly not what I want to tell you. However, I wish to be completely honest with you, so I feel obligated to not give you false hope.

You have no right in law to demand a settlement figure at all. Of course, they will give you one because they want the money in up front so thats a bit academic.

However, I am sorry but you owe the substantive sum of the loan plus interest. They are entitled to demand that sum. You do not have a right in law to pay a lesser sum on the basis of an early settlement offer.

That said, they may well accept a much lower sum because of the benefits of having the money up front. The settlement offer they have made is not likely to be their best price so its worth negotiating with them about it. However, you should have in your mind that in law you have no rights to demand anything less than the full sum due under the contract.

On the other hand, in your favour, you have the capacity to pay them off in full which is something they would be very keen to achieve so you are not in a weak negotiating position.

The reason its gone up in the way that it has is that they are adding front nose interest.

The offer they have made may very well be a bad deal. You will have to go back and negotiate if so.

I'm sorry this isn't the answer you wanted but it is the position that you face and I have a duty to inform you truthfully.

Hope this helps. Please let me know if you need more information.