CENTRAL TRUST- i am a mole

wr1ght

so can you help ?

CTmole

studge wrote: »

I took a secured loan out with Central Trust about 18 months ago for £30,000 and despite the interest rates being reduced on several occasions including the latest reduction of 1.5% they continue to put my payments up, i'm now paying approximately £60 per month more than I was when i took it out and they've written to say they 'may' have to put up charges again in the new year which almost certainly means they definitely will put them up. They have given me some flannel about the rises been to do with the rate at which they borrow from banks has gone up, but whats that got to do with me bearing in mind the money has already been lent to me (and spent). My mortgage payments have come down with the interest rate reductions but these twisters continue to put my loan payments up and screw me for more and more :mad:. What's their game? Any advice would be appreciated. Thanks

your mortgage is probably tied to the base rate. these are called tracker mortgages. the mortgage company didn't put your rates down out of goodwill, they do it because the credit agreement for your mortgage says so. your secured loan isn;t a tracker, it is variable rate, which means they can change the rate as they see fit. its pretty clear from the T&c on your credit agreement, think from memory its section 3 or 4.

the base rate isn't what banks borrow from each other at. its current bloody hard to get a loan, as such wehre they do lend its expensive. this explains why the rates have gone up but have yet to come down.

to be fair to the lender, i do know that in 20 odd years of trading, their rates have gone up 3 times. i'm pretty sure their cost of borrowing went up considerably from when they lend you the money.

sorry for the delay, been abroad over xmas

CTmole

Reddh_Legend wrote: »

CT brokered my 2nd charge into FP. I am currently waging war with FP over the "variable" nature of the loan as neither CT nor FP explained its penal nature and am resurfacing a PPI claim that I let myself get fobbed off with by CT who claimed my tape was corrupted and that thre was nothing more they could do and had acted within guidelines. Now I know they didn't offer other cover, nor make it aware I could buy it elsewhere, nor disclose it as a premium, etc etc/. Any advice appreciated.

central trust operated whats called a limited disclosure policy. this means that rather than getting the credit agreement and reading every word of it, they let you know the basics and send you a credit agreement to read and sign yourself.

i'm sure the credit agreement is pretty clear that insurance is included at an additional premium, as i've seen enough of them in my time. i'm equally certain the rate is clearly displayed as variable both by the APR % and on the reverse in the T&C. perhaps you could request a copy?

having said that i sympathise, joint PPP + life from FP is an additional 30% of the loan premium, and the rebates aren't proportionate. they suck, no doubt (although they did offer the best rates when they were funding).

the only way CT would really have mis sold the loan is if you had indicated in the sales call that you were ineligible for cover (eg a pre existing condition that would prevent you from claiming). however, certainly in several years being at the company i've never heard of a sales call being "corrupted". ask them to send whatever they have and let you review how corrupted it is. CT record every single call, and store them for 60 odd years so i'm fairly sure they will have it (though i dont know how long ago they started recording calls), though not sure why they would fob you off. i'm 100% certain they follow the FSA's TCF (treating customers fairly) guidelines, as they spent a lot of money and time training all staff on its principles.

find out what you can about the sales call and let me know

CTmole

mr_hooch wrote: »

I also had problems with CT I have posted my expieriance and also was fobbed off but being a stubborn and determined person I took it to the FOS dispite CT insisting they had acted "according to the law and policies"
I won and they have to pay me back.
So my advice go for it and contact the FOS

you're not really explaining the nature of your claim, but yes, if you are not happy with the outcme of your complaint by all means forward it to the FOS.

pinknico

Would we have been mis sold the PPI if my husband already had life insurance? This was a joint policy that CT sold us.

CTmole

pinknico wrote: »

Would we have been mis sold the PPI if my husband already had life insurance? This was a joint policy that CT sold us.

PPI is different from life cover. PPI covers your monthly instalments if you are unable to work due to accident, sickness or unemployment.

so probably not.

However it might potentially have been missold if for example you:

indicated you had enough cover
indicated you were not eligible due to a pre existing condition - eg cancer.

IcklePickle_2

CTmole wrote: »

PPI is different from life cover. PPI covers your monthly instalments if you are unable to work due to accident, sickness or unemployment.

so probably not.

However it might potentially have been missold if for example you:

indicated you had enough cover
indicated you were not eligible due to a pre existing condition - eg cancer.

Erm, have you read Martin's article about PPI Reclaiming? The customer doesn't need to *indicate* anything. The onus is on the lender to check.

Also, those are not the only reasons it could have been missold. See article.

IcklePickle_2

CTmole wrote: »

your mortgage is probably tied to the base rate. these are called tracker mortgages. the mortgage company didn't put your rates down out of goodwill, they do it because the credit agreement for your mortgage says so. your secured loan isn;t a tracker, it is variable rate, which means they can change the rate as they see fit. its pretty clear from the T&c on your credit agreement, think from memory its section 3 or 4.

the base rate isn't what banks borrow from each other at. its current bloody hard to get a loan, as such wehre they do lend its expensive. this explains why the rates have gone up but have yet to come down.

to be fair to the lender, i do know that in 20 odd years of trading, their rates have gone up 3 times. i'm pretty sure their cost of borrowing went up considerably from when they lend you the money.

sorry for the delay, been abroad over xmas

I think the point this poster is making is that it's unfair of this lender to be increasing their variable rate when the rest of the market (banks etc.) are mostly reducing their variable rates, in line with the BOE base rate drops.

nomoneytoday

IcklePickle wrote: »

I think the point this poster is making is that it's unfair of this lender to be increasing their variable rate when the rest of the market (banks etc.) are mostly reducing their variable rates, in line with the BOE base rate drops.

But the cost of financing non prime debt is way more expensive than 1.5%

CTmole

IcklePickle wrote: »

I think the point this poster is making is that it's unfair of this lender to be increasing their variable rate when the rest of the market (banks etc.) are mostly reducing their variable rates, in line with the BOE base rate drops.

Please, lets remember banks are there to make money out of you. most banks have reduced the rates on their tracker mortgages because they track the base rate, they're doing it only where contractually abliged or from media pressure. but the base rate has dropped from 5.25% to 1.5% and the only banks to pass this on in full are the ones that have been part or fully nationalised.

Its still generally very expensive to borrow money.