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Bank changes loan agreement rate ...
So i am putting this out there in order to seek some advice:
This has happened to a biz mate ....
Took out a business Drawdown Loan for a sizeable amount in 2003 Has only 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 discovers that they were in fact paying 1.50% above base rate and NOT 1%
Signed documents clearly state 1%, but the statements show 1.50% ...
He thinks that the person who dealt with the loan in the beginning has benefitted from the difference.
Any tips or advice as to what to do next please?
Thank you
This has happened to a biz mate ....
Took out a business Drawdown Loan for a sizeable amount in 2003 Has only 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 discovers that they were in fact paying 1.50% above base rate and NOT 1%
Signed documents clearly state 1%, but the statements show 1.50% ...
He thinks that the person who dealt with the loan in the beginning has benefitted from the difference.
Any tips or advice as to what to do next please?
Thank you
"onwards & upwards"
0
Comments
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Put a complaint in writing and see what the initial outcome is.0
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Put a complaint in writing and see what the initial outcome is.
Hi, yes I intend to do that for them. Is there any particular letter structure that you would recommend to start with.
Further to my original post the bank has recently offered compensation of £200. This has been verbally offered and in their words 'this will help us all to move on' I personally smell a rat here, believing that business bankers etc have gained financially here ...?"onwards & upwards"0 -
I would include a photocopy of the loan agreement. Write a letter setting out concisely -
1) What's happened (e.g. "X years ago I took out a loan for X, this was agreed on X rate as per the attached loan agreement")
2) Why you're not happy with it (i.e. "..recently discovered the interest rate was higher than agreed.."
3) What you want done about it (e.g. "the surplus interest to be repaid to me and written confirmation the loan will now continue as per the original interest rate")
As with any complaint letter keep it concise, factual and unemotive.0 -
How much extra interest did you pay from 2003 until now?
If it's less than £200 then happy days. If not then reject the offer...0 -
Please explain how the busines banker could benefit from the situation.
Do you think he/she has pocketed the difference??0 -
Hi, an update for you out there in forum world ....
The bank has finally admitted errors were made but 'still' to date cannot locate the original signed agreement. Funny that!. So the interest rate differential is being recalculated. Also the bank in question has asked us to suggest a compensation figure. My question is how much should or could I ask for???"onwards & upwards"0 -
as they originally offered £200 then unless you can work out the amount lost then suggest £2000 as a starting point for negotiations0
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