We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Bank changes (hikes) loan agreement rate without consent ...
This recently came to light ...
Took out a business Drawdown Loan for a sizeable amount in 2003 Recently realised that whatever the base rate was at the time an agreed 'add on' of 1% was signed and agreed to added to the base rate for the life of the loan (15 years) However have since discovered that we were in fact paying 1.50% over base rate and NOT 1%
Signed documents clearly state 1%, but the statements show 1.50% ...
We believe that the business banker who who dealt with the loan in the beginning has benefitted from the rate difference.
We brought this up at a meeting - they went away called us up after 2 days saying yes you were overcharged. We will give you a £250 compensation and then we can 'all move on'.
We are not at all happt. Do we have a right to ask for an investigation and if so how should we word a start letter with the bank in question
Thank you
Took out a business Drawdown Loan for a sizeable amount in 2003 Recently realised that whatever the base rate was at the time an agreed 'add on' of 1% was signed and agreed to added to the base rate for the life of the loan (15 years) However have since discovered that we were in fact paying 1.50% over base rate and NOT 1%
Signed documents clearly state 1%, but the statements show 1.50% ...
We believe that the business banker who who dealt with the loan in the beginning has benefitted from the rate difference.
We brought this up at a meeting - they went away called us up after 2 days saying yes you were overcharged. We will give you a £250 compensation and then we can 'all move on'.
We are not at all happt. Do we have a right to ask for an investigation and if so how should we word a start letter with the bank in question
Thank you
"onwards & upwards"
0
Comments
-
when you say you think the banker has benefitted from the difference, what do you mean?
Also did £250 cover the excess interest you've been paying?0 -
when you say you think the banker has benefitted from the difference, what do you mean?
Also did £250 cover the excess interest you've been paying?
I'm not sure if the BB has benefitted or not - that I don't know for sure - but I truly believe that a decent comm would have been gained from this transaction - more so by the rate differential.
The £250 in no way covers excess interest - that runs into thousands. Also there was an arrangement fee of £2750 at the beginning of the deal. I feel exploited in more ways than 1 here! TBH"onwards & upwards"0 -
what are the figures?
if you had a 100,000 loan and were charged 0.5% too much that would have cost you £500 per year ..so over 5 years that would have cost 2,500 (ignoring any capital repayments etc )
If the agreement is clear why not put the complaint in writing and ask for a specific sum?0 -
I trust you havent accepted the £250 as an apology? This might void any further claim?
I'd want the difference in interest back, as long as I got that then its fair in my eyes to be honest.
The paperwork with the agreed percentage is the agreement, they can't charge you more interest. I wonder if you could get the loan made void
0 -
I trust you havent accepted the £250 as an apology? This might void any further claim?
I'd want the difference in interest back, as long as I got that then its fair in my eyes to be honest.
The paperwork with the agreed percentage is the agreement, they can't charge you more interest. I wonder if you could get the loan made void
Hi, thanks for your words - that's an interesting point about the loan being Void ? - i would like to look at that further."onwards & upwards"0 -
I trust you havent accepted the £250 as an apology? This might void any further claim?
I'd want the difference in interest back, as long as I got that then its fair in my eyes to be honest.
The paperwork with the agreed percentage is the agreement, they can't charge you more interest. I wonder if you could get the loan made void
Hello, thank you too for your words - I have yet (after all this time even received an acknolegdment of my original letter - let alone any wrong doing from the bank. The derisory compensation amount was offered verbally a good 4 months ago. Maybe I should by pass this banks office and go straight to it's head office?"onwards & upwards"0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.3K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.4K Work, Benefits & Business
- 601.1K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards