Nat West Extortion!

Kavanne

~Brock~ wrote: »

I bet the rate quoted is still significantly cheaper than the costs of the overdraft, remembring the fact that the transaction charges don't get included in the quoted overdraft APR.

Yeah the rate of the OD ia about 19% but if you were to add all the charges + interest together the APR would appear to be significantly more. Just depends on whether or not the customer does use the loan to get sorted out or just spends the extra £100 the bank gives them on top of what they already owe (the idea of this is to prevent further charges)

robertjonesuk

so last year you got 6k back from them and now you're struggling to pay the o/draft off...hmmm....whose at fault here?

Hillsey wrote: »

Hello, newbie here.

After a year out of work my overdraft with the Nat West has reached £1,700. £1,300 of this is my overdraft limit the rest is charges. When I called to complain I was offerd a loan to pay off the overdraft to "help me get back on my feet". They asked me to cut up my cheque guarantee card and they sent me some forms to complete.

On receiving the forms I saw that the rate of interest on the loan would be 28.4%.

Don't get me wrong I want to get rid of my overdraft but how can they get away with such an extortionate rate?

Obviously because of a year out of work my credit rating is shot to pieces but surely this is a case of the Nat West shooting fish in a barrel as they know I will not be able to borrow elsewhere.

Last year I did get them to pay back over £6,000 in unfair charges and I'm thinking that this is there way of getting some of that back.

Do I have anywhere to complaion to or can I get any advice?

Any suggestions are most welcome.

Thanks in advance,

Hillsey

Kavanne

What did you do with that 6000?!

chuckley

i think the higher apr is only extortionate if spread your payments across more than one year.

if ur paying back within a year i dont see how a rate of 40% is extortionate.

mind u im suprised crapwest offered u a loan with your account at £1700 with loans of charges. sounds like they are trying to get you even deeper.

Kavanne

chuckley wrote: »

mind u im suprised crapwest offered u a loan with your account at £1700 with loans of charges. sounds like they are trying to get you even deeper.

Like I said they want to repay the borrowing and with a loan the customer is repaying not just sitting there (well that's the idea anyway)

Tassotti

petermb wrote: »

Thieves, interesting analogy.
I suppose if you OWN a loan company you would think like that. Do you OWN a loan company or a loan brokerage?

I find it hypercritical of lenders to shout "robbery and thieves" at people who default and yet you dont mind setting up Single Premium Payment protection plans on loans where the policies are 90% guaranteed not to pay out and yet you earn up to 80% of the premium as commission.

What exactly do you call that?

I OWN a loan company, and, yes, I view defaulters as thieves...It is my money they are robbing and why I have to charge large interest rates.

I operate my business legititimately. I don't charge application fees, I give discounts to good payers, and never set up protection plans. I agree that these are a rip-off.

petermb_2

Cool! A pity there are not more like you around but sadly you are in the minority. There is a need for lenders who assist those with less than perfect credit histories.

The problem is that traditionally those in your market have been the sort that wont just take your rings but your fingers and your arm. You know this is true and is so even of subsidiaries of high street banks as well as private finance houses.

Time things changed.

Tassotti

Peter, I think you are suggesting that lenders will break legs to get money back!?!

I dont think reputable companies (or banks, as you say,) operate in this way.

topbombing

thing here is yes, the rate is high i agree with that, but.. youve racked up £6k in bank charges !!!! youve claimed them back, theyve given you them back, youve signed to say that that GOGW refund is full & final meaning you cant claim any more, yet in a few months youve racked up another several hundred quid in charges!!

I am suprised they have offred you any form of loan to be honest . they could quite easily issue default notices & send in the bailiffs.

Id take the loan & cancel your Overdraft.

petermb_2

Tassotti wrote: »

Peter, I think you are suggesting that lenders will break legs to get money back!?!

I dont think reputable companies (or banks, as you say,) operate in this way.

I am not saying that exactly, but they do want more than their pound of flesh.
You cant tell me that borrowers have not been ripped off.