Information about the options for early redemption and rescheduling of loans through Lite Lender Bank. Lite Lender Bank advertises its loans in big words: They are “simple, safe and cheap”, says the description of the installment loan, for example. Basically, this also applies, but with one exception: If you want to find information on how to redeem a Lite Lender Bank loan prematurely or reschedule, you have to search for a long time – and be an expert in the matter. In this regard, the money house provides an impressive example of how well banks can hide unwanted information. See http://www.frumbl.com/payday-loans-bad-credit-get-online-payday-loans-for-bad-credit-without-the-hassle/ for further editorial
Conditions for early redemption are not discussed
At no point does Lie DirectBank directly address the conditions for early repayment of a loan. The terms special repayment, redemption and debt rescheduling can only be found in the freely accessible information where the financial institution recommends that other loans be redeemed with your own loan.However, banks are obliged to provide the relevant information. Lite Lender Bank naturally also fulfills this obligation: the relevant information is given in §12, paragraph 6 and in §18, paragraph 3 of the company’s General Terms and Conditions.
The first part relates to the bank’s expenses, which it can pass on to customers. The second part revolves around the customer’s right of termination in the case of closed business relationships. The content is identical in both cases: statutory provisions remain unaffected. Put simply, this means that the early redemption of a Lite Lender Bank loan is done in accordance with the legal regulations. The money house itself makes no additional agreements. For the customer, this means that costs are lurking here.
The legal regulations for early loan repayment
The fees that a bank may charge for early repayment of a loan are capped by EU law. Thanks to the so-called “consumer credit directive”, the installment loans can be redeemed immediately and without observing a notice period. Lite Lender Bank may not exceed one percent of the remaining debt. If the loan runs for a maximum of twelve months or less, the maximum fee drops to 0.5 percent of the remaining loan amount.
The imperative is that the remaining loan amount must be repaid in one fell swoop. Those who reschedule with another loan should have no problems in this regard. However, if you only repay part of the loan, you make a so-called special repayment: the regulations for this are identical to those for early redemption (“prepayment”).
June 11, 2010 of no importance to Lite Lender Bank
Usually one would have to make a major restriction in the presentation of the legal regulations: the consumer credit directive only came into force on June 11, 2010. This does not apply to credit agreements that were previously concluded. For Lite Lender Bank, this fact is irrelevant for one simple reason: the money house was only founded on January 1, 2011. All concluded credit agreements are therefore necessarily covered by the EU directive.