Nearly 9 out of 10 UK adults felt loan providers should either abolish repayment penalties altogether or, at the very least, be required to spell out their repayment penalties more clearly.
Commenting on the research, IF’s Grenville Turner, said: “It’s not surprising so many people are unaware of redemption penalties on loans when they are often hidden away in the small print. Yet these cost borrowers millions of pounds in extra interest payments every year. Our challenge to those who charge repayment penalties is simple – if you think these are so reasonable, stop hiding them in the small print and be more upfront with borrowers about the costs of early payment.”
