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Applying for Northern Rock Personal Loan? It may not be as cheap as you think!
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hollie.weimeraner
Posts: 2,155 Forumite
in Loans
My wife has just purchased a new car and took out a loan with Northern Rock after shopping around as it was the lowest interest rate we could find (5.6%).
We got the paperwork through, signed it and sent it off. The loan was granted and the repayment schedule showed a first payment of £186-08 so when I checked my statement today I was surprised to see they had actually taken £231-08:mad: After contacting them and complaining it appears that they DO state that there is a CHAPS fee of £45 if you select the non-standard transfer method. What it doesn't mention too clearly is the non-standard transfer method is actually the method they use (surely then this should be the Standard method).
I complained rather vociferously on the telephone that they have hidden this away in the paperwork and it is not made clear when they quote the first payment amount and they are now going to refund this fee.
If you fall foul of this charge it will obviously in effect raise the interest rate you are paying (which in my case amounted to .5%).
We got the paperwork through, signed it and sent it off. The loan was granted and the repayment schedule showed a first payment of £186-08 so when I checked my statement today I was surprised to see they had actually taken £231-08:mad: After contacting them and complaining it appears that they DO state that there is a CHAPS fee of £45 if you select the non-standard transfer method. What it doesn't mention too clearly is the non-standard transfer method is actually the method they use (surely then this should be the Standard method).
I complained rather vociferously on the telephone that they have hidden this away in the paperwork and it is not made clear when they quote the first payment amount and they are now going to refund this fee.
If you fall foul of this charge it will obviously in effect raise the interest rate you are paying (which in my case amounted to .5%).
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Comments
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It's still catching people out then?
Discussion from last month...
http://forums.moneysavingexpert.com/showthread.html?t=878690 -
Sorry I cant quite get my head round what you just wrote... so they would have sent it by chaps anyway even if you didnt tick it? as far as i know (i work in NR mortgage dept so dont know all loan procedures) they would have issued you the funds via cheque which is free.0
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Read the thread in my link above jenyking - chaps is the "default" option!jenyking wrote:Sorry I cant quite get my head round what you just wrote0 -
lol good ol northern rock
(sorry i shouldnt laugh)0 -
Refunded Fee in my account now:j0
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