Mis Selling of Bank Loans by counter staff

Rokku_2

Hiya,

New poster here so don't know where to put this.

Don't know if anyone has had the same problem as me or not, or what I can do about it.

Every time I go into the bank the counter staff notice I have a maxed out £3000 overdraft (which has an interest payment of £38 roughly a month), they then tell me 'you should get a bank loan as you will save money each month'. I then specifically point out that the interest on an overdraft is a lot lower than the interest on a bank loan, and that in fact I would NOT being saving any money, in fact I'd be losing it. Despite this they carry on trying to sell it to me saying I'll save money! I've pointed out to them I consider this mis selling, I'm now getting to the point where I want to complain against them. The company is Natwest.

Feel free to correct me if I am wrong, but I'm sure I am paying way less using my overdraft, I mean, that was the reason I got one, so I could pay off my 3000 credit card and pay less interest on a overdraft.

R

di3004

Rokku wrote: »

Hiya,

New poster here so don't know where to put this.

Don't know if anyone has had the same problem as me or not, or what I can do about it.

Every time I go into the bank the counter staff notice I have a maxed out £3000 overdraft (which has an interest payment of £38 roughly a month), they then tell me 'you should get a bank loan as you will save money each month'. I then specifically point out that the interest on an overdraft is a lot lower than the interest on a bank loan, and that in fact I would NOT being saving any money, in fact I'd be losing it. Despite this they carry on trying to sell it to me saying I'll save money! I've pointed out to them I consider this mis selling, I'm now getting to the point where I want to complain against them. The company is Natwest.

Feel free to correct me if I am wrong, but I'm sure I am paying way less using my overdraft, I mean, that was the reason I got one, so I could pay off my 3000 credit card and pay less interest on a overdraft.

R

Hi there R.;)

Reading through this hun, would it be okay for you to copy and paste this and move it into the above Reclaiming-Discussion Thread hunni ?:D

There you will get more help and advice where to take this from here, but yep, you may have grounds for complaint here.;)

Although someone may come along here to also help too.

Not sure if you've had the chance to browse through other threads, but if you do get the chance you will find that others will also have complaints about the above mentioned bank, so it may be worth you checking it through and see how others got through.
I would check on both the Reclaiming and the Success forums as above.;)

I wish you luck and hope this resolves.

Good luck !
Di.
x

ManAtHome

You must be paying around 15% for the overdraft (£456 interest on £3000). Maybe the loan looks more expensive as you'd be paying back the £3k as well as interest. You need to watch out for reduction/withdrawal of overdraft - quite a few banks have been doing this over the last few months. This would leave you no option, so worth having a look round at loan rates anyway.

PBA

There can't be mis selling here, simply because cashiers don't sell. The cashier is spotting that you're constantly in your overdraft and therefore suggesting that you might be better off with a loan. However they'd then make a referral to an advisor to look more thoroughly at your situation and complete the sale. If at that point a loan was recommended that actually cost more than you were paying before you might have cause for complaint.

nomoneytoday

The APR on an overdraft is between 13.5% and 19.24%, their loans are at 8.4% typical. I make the loan cheaper to finance

http://www.natwest.com/personal/day-to-day/current-accounts/g5/rates-charges.ashx#interestDue

pam0

They are only giving u other options on paying interest monthly that isnt actually reducing the o/d. a personal loan will have a final repayment date and u can get special rates, taking out their adgold account u get 1% off, where as your overdraft will run and run.

tictax

Where's the mis-selling? They aren't selling anything to you as you aren't buying!

I do however agree with the other posters about your overdraft possibly getting taken away. How long has the balance been at £3000?

You could look at loans or a credit card which would allow you to clear the overdraft - I think Virgin allow this.

Kavanne

ManAtHome wrote: »

You must be paying around 15% for the overdraft (£456 interest on £3000). Maybe the loan looks more expensive as you'd be paying back the £3k as well as interest. You need to watch out for reduction/withdrawal of overdraft - quite a few banks have been doing this over the last few months. This would leave you no option, so worth having a look round at loan rates anyway.

Natwest OD on a normal current account is 19.24% AER, a bit lower for advantage gold, and a bit lower for Private. a Natwest loan of £3000 is typically a lower APR than that OD and a loan from elsewhere could be even cheaper.

Debt_Free_Chick

In general, the interest rate on a loan is usually lower than an overdraft

donny_osmonds_mad_fan

I have the same trouble with natwest in that they ask me this every single time I go in or ring up or they ring me at least once a week.

I had a larger loan that now only has about 3 payments left, and a 3k OD, also joint OD of 3k, they offer me a loan all the time but want me to pay the full amount of the joint OD...would be happy to do the loan to pay off the OD once the other is finished etc and a cc and have now come off the joint account so they dont turn me down when I refuse to be responsible for the whole joint OD...this farce has been going on for 2 years, I have said I will accept half the joint od and pay it with a loan etc but nooo not good enough.

anyways we had a laugh when we went in to sign the form to take me off the joint account the other day when they said they would like to discuss mortgages with us. Just makes me laugh when years ago when i earnt a whole lot less, gave me a 7.5k loan, and a 3k od and yet now i earn twice as much and wish to consolidate they wont allow it but then I guess they make too much money out of me on interest payments.