Lloyds loan help.

Charlie1986

I had a loan with Lloyds over 4 years that I had been paying off. In December my local branch phoned me and asked if I would like a review. I agreed and went along. I borrowed a bit more and was under the impression that this amount would just be added on to my exsisting loan, like a top up.
A few weeks later I got a letter saying that my 'old' loan has been paid off and because I repaid it early they charged me £157. Also that my 'new' loan is at 22% apr :eek: .
I have wrote to Lloyds about this as at no point was i told I was accepting a new loan at all. They have wrote back saying they contacted the local branch and the adviser remembers telling me it was a new loan and they have extensive notes on this
Is there anything I can do, i would have never accepted a Loan at 22% when my previous one was 11%.

Cashpig74

If you have re-financed your loan then the new loan does pay off the old one. New rates apply as it is a new deal but they have misled you by the sounds of it.

However, if you questioned the agreement in terms of unenforceablitiy you will find that the first loan is the ageement that the money can be quiestioned from. In otherwords, this method of challenging the Crdt Agrmt stems from the first loan as it is still the same "bulk" of money that you borrowed. Strange, but true. Check it out, you may find that their deviousness has led you to challenge their paperwork, it could lead you to a victory over them, you'll have your money and no loan to pay back.

Dont forget, they invited YOU to borrow more money - they were the greedy ones looking for a quick and easy target profit.

anotherpaul_2

Make an official complaint and take it to the Finacial Ombodsman Service if they don't resolve it adequately. However, ultimately you might lose.

Was there any paper work? Did you sign anything? I suspect if you signed paperwork for a 22% loan, you're probably stuck. They'll claim you should have read it before signing. I you didn't do any paper work, they probably can't enforce the loan against you, in which case you should ask them for a copy true (signed) copy of the credit agreement, if you don't have one.

Charlie1986

I've wrote to them but they've basically called me a liar and said it was all explained to me. I did sign some paperwork but was told it was just for the top up, i didn't see any sign of the 22% though, ill get it out and have another look. I fully intend to pay the loan back but I just don't agree with the £157 charge as this wasn't explained at all. Looks like the next step will be the financial ombudsman.

Charlie1986

I've had a look but can't find the actual agreement. I do have a summary and this does say 22%. If I write to Lloyds to request the agreement and all information they have on me, including the comprehensive notes they say they have, do I have to include any money for this? Many thanks

Robert_Sterling_3

I think that we, as represented by the government, are now a majority share holder in Lloyds Bank.

Cashpig74

Charlie - they seem to be taking you for a mug somehow. I wouldn't stand for it. The WHOLE reason they asked you back to "top up you loan" is because they KNEW that they would get it from 11% to 22% without you really being aware of it.

Banks are not there to help you, they are there to make money and they make more money from certain types of people.

People that do not qustion, do not ask for things to be put right, people that think that the kind pretty customer advisor is there to "help" them..

They are generally robbing thieving institutions and now they are being made to pay for it.

I would get what you can out of it and put yourself, your partner and your kids/family first.

good luck.

Charlie1986

I have a feeling they are trying it on. All the replies to my letters dont actually deal with my complaint, which was that I was told i was topping up my loan, not taking out a new loan. They say it is in the agreement that when I pay off the loan early I will be charged. My arguement is that I agree it says this in the Loan agreement but how can they inforce it when they never told me I was taking out a new loan
I'm just not sure where to go from here, I would like copies of the 'comprehensive notes' they have on file to say this was explained to me and also my Loan agreement. I'm filling out a form to send to the financial ombudsman and see what happens from there.
I have also opened a new bank account with a different bank, don't know why but I just have a feeling that I should and am going to transfer everything over to them. I know what Lloyds can be like and don't want them just taking money as they see fit.

Robert_Sterling_3

Before you write to the Ombudsman you need to get a statement from your lender saying that you have exhausted their system for getting a resolution of your complaint.

Charlie1986

Thanks Robert, I have that. It says they cannot agree to my complaint and if I remain unhappy I am to go to the financial ombudsman.

Cashpig74

they never deal with the complaint UNLESS they feel the threat of legal action. They know what they SHOULD be doing - but when a consumer approaches them, they take the pish...

get them written off.. that wil teach them!