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minimum repayment and redraw

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nose View Drop Down
Newbie
Newbie


Joined: 27/November/2015
Location: Australia
Posts: 29
  Quote nose Quote  Post ReplyReply Direct Link To This Post Topic: minimum repayment and redraw
    Posted: 27/May/2018 at 23:21
On a PI loan , extra repayments are made and the balance comes down. Bank says they wont reduce the minimum repayment to reflect what is owing unless redraw is removed.
Is it legal?
in contract the only thing I can see is that they can remove redraw at any time, which I never liked in the first place but was told their contract was not negotiable. Now they are forcing me to make repayments based on the original amount of the loan. They say they will only charge interest on the loan balance not on the original loan. According to them , even if I am down to the last $10 , I will still pay the higher repayment amount .
Can they blackmail me with redraw removal threat?

thanks

citizen-joe View Drop Down
Senior Member
Senior Member


Joined: 09/October/2005
Location: Australia
Posts: 555
  Quote citizen-joe Quote  Post ReplyReply Direct Link To This Post Posted: 28/May/2018 at 00:11
Is it legal?

Probably as you could redraw the extra payments and the loan would still be at it's original value.

If you don't want the redraw facility, write to them to have it canceled and request the monthly payments be adjusted to reflect the higher payments you have made.

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