The Green Deal Finance Company has removed early repayment charges on all future Green Deal Plans.
The Green Deal Finance Company, the not-for-profit mutual organisation established to finance and administer Green Deal Plans, announced the removal with immediate effect of early repayment charges on all future Green Deal Plans on 16 May.
Consumers have the right to repay some or all of their loan early at any time. However, under the current provisions in the Consumer Credit Act, there is a procedure that allows Green Deal Providers to claim compensation for costs incurred as a result. Early repayment charges are commonplace with mortgages and with some other financial service products.
Previously, Green Deal loans which covered less than a 15 year period, and where the amount repaid early was less than £8,000, had no repayment charge applied.
If the loan was to be repaid over 15 years or more, however, a maximum £6 charge was levied for each year left on the loan, for every £1,000 repaid early.