Bank changes (hikes) loan agreement rate without consent ...

HAVEFAITH

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

bigstevex

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?

HAVEFAITH

bigstevex wrote: »

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

CLAPTON

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?

bigstevex

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

HAVEFAITH

bigstevex wrote: »

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.

HAVEFAITH

bigstevex wrote: »

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?