Foreign student loans problem.

adodigby

Hi

I'm posting on this forum on behalf of my friend. She is a chinese student studying in the UK. She has been here for 4 years and hopes to be able to study here for a few more years.

She has two loans only a year old.

Car loan-(Black Horse) borrowed £3500 at %17.9 over 4 years.
Monthly payments £108.84
Settlement figure as of the 22nd Feb 2006 £3752.

Bank loan from Lloyds £3000 at %15.9 over 7 years.
Monthly payments £76.95
Settlement figure as of the 21st Feb 2006 £3100.

I personally think Lloyds don't care who they give loans to. She is a student with a part time job working in a food superstore.

First of all I would love to be able to tell her that she can get some compensation from Lloyds for ripping her off but I don't think so.

The reason for posting was that she would like to know what the best thing to do is. She thought about getting a consolidated loan at a company like tescos at £7000 %6.5 but they will not deal with over seas students.

She is loosing so much money and would really like some advice as how to get out of this situation.

Hope someone can help.

Ado.

jonesMUFCforever

She may be a student and she may have come to this country from overseas but it has not stopped HER applying for these loans!

Do we know what she put down as occupation and what her income was ? In short we do not because you have not posted it.

What has the Lloyds Tsb loan monies been used for?

You want to know how she can get out of this - fairly simply she sells the car and pays off Black Horse.Then anything left over can be thrown at the Lloyds loan.She can make overpayments at the counter of any LTSB branch.

adodigby

Hey

Thanks for the reply.

She did inform the loan people that she was a student and said she was working part time.

I get the impression from her that she didn't understand at that time what the exact contracts were. The bank was certainly not going to advise her that those loans were not very good.

(I have witnessed her been manipulated by English companies because her english is not great and I do find that shocking.)

You could say it's her own fault she didn't have to take out the loans. The fact is that if she new then what I have informed her of now she wouldn't have taken them out.

I have told her about selling the car which she's going to do.

Do you think there would be anything she could do with the crazy interest on the bank loan of £3000.

Thanks

Ado.

mummytofour

I should think that the apr is so hight due to her being a non uk resident IMHO she was pretty lucky to get anything at all, after all she could leg it at anytime if she wanted to? I would think that she is classed as high risk even tho she has been here for a while now.

I would of course tell her to sell the car, and make as many over payments as possible, I dont however think that loyods were in the wrong, she wanted the money, they gave it to her, she agreed to the terms and maybe she did not understand at the time but that was really something she should of been aware of. Life is about learning and this situation may not be great, but I think hind sight is a great things and at least she now knows not to get herself into this kind of situation again, having learn a v important lesson and thank god really that it was not for a really huge sum of money.

Good luck, you sound like a nice friend for caring so much.

Glad

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