lloyds TSB loan, can anyone help?

tina1981

Hi there. I was hoping someone could perhaps advise me?

I took out a new loan with Lloyds last week.

I already had an existing loan of which I still had 31 months to pay, I was paying £177.72 per month.

I also have a credit card with them that was currently at approx £2096.

I have agreed to take out a loan to consolidate the credit card, so I am now paying 274.26 per month.

I can't help feeling I've been diddled.

Basically I wanted to know if I could cancel this go back to my previous arrangement, where by I continued to pay what I was paying per month for my loan.

I am actually quite annoyed with myself the more I think about it.

Initially the woman was trying to tell me that my credit card was at £2900!! Myself and my hubby looked at each other as we knew it was closer to £2100. She had misread the form in front of her.

We also said that if we took the loan that we would want to get rid of the credit card for one with about £500 max limit (so we don't rack it up again).

She said that she would organise that and it would take a couple of weeks. When I got my original card from them. I signed the paperwork there and then. I didn't this time (this is making me wonder if she has actually organised this).

She also kept referring to the fact that we only repaid £200 to it the previous month and that we were spending more on it than we were repaying. We usually repay between £250 -£400.

She also asked if we just wanted to carry on our PPI from our previous loan and stupidly said yes ( I have since sent a letter off to cancel this). Carry it on???? It's a new PPI!!!!

She transferred money to pay of the credit card but she didn't even pay it off fully!!! She gave me the impression that it would be paid off in full and that the credit card account would be closed. Out of curiosity yesterday, I tried to use the card and it let me. So it hasn't been cancelled at all. I even asked her at the time if I should return the card to her and she said no.

Basically I'm really annoyed and feel I have been done!!

I was hoping someone might know if I could kind of reverse the whole situation as really we were getting along fine as we were.

Any advice would be Greatly appreciated.

Tina xx

P.S Can't believe I've been so dumb.

tina1981

Sorry, to add to this. Does anyone know how banks calculate interest? She added the rate of the previous loan interest and the credit card interest and she worked out that we were paying 30% (the two added together).

Now that we have consolidated if you like, the interest rate is 24.5%.

I can't help think that we would have got the credit card limit right downif we had stayed the way we were compared to the next 2 1/2 years were gonna be paying it as part of the loan now,

Crap_with_money.com

Hi Tina,

Sorry I can't help with the interest question. As far as I know you can't simply reverse the situation.

It's probably not as bad as it sounds though, with Lloyds loans, you can overpay on them - so if you would have been paying a lot more than the minimum towards your CC to get it cleared, you can still continue to do that. It will then reduce the term of the loan you have, and therefore the amount of interest you'll pay overall.

Re: the credit card, I'm surprised she said she would cancel the card and issue a new one - I would have expected that they would simply have reduced the limit on your existing card - maybe that's what she's done and that's why the card's still active?

xx

Crap_with_money.com

PS There is a 14 day cooling off period with the loan as far as I know - so you may be able to find some other way of financing the debt you have?

When did you take the new loan out? And have you cleared the full balance of the existing loan already? How much of a balance did she leave on your CC?

xx

tina1981

sorry to keep adding to this but the APR for my credit card is 17.9%. So if the woman at the bank calculated correctly, that means I would only be paying 12.1 % on my previous loan.

I don't have a copy of my previous loan but I have requested the contracts for my last 3 loans.

Clearly I have been had, I think. Could this be classed as being miss sold a loan or have I just been a complete muppet?

I'll stop talking now lol x

tina1981

thanks for replying crap ;o)

She said I couldn't reduce it that low because it was a platinum card and the minimum is £2k aparantly.

tina1981

Crap_with_money.com wrote: »

PS There is a 14 day cooling off period with the loan as far as I know - so you may be able to find some other way of financing the debt you have?

Crap_with_money.com wrote: »

On the 15th of this month, a week past Monday.

Crap_with_money.com wrote: »

Nope, we still had 31 months of paying £177 I think it was.

Crap_with_money.com wrote: »

About 90 0dd quid.

xx

tina1981

sorry, I'm not good at the quoting thing lol

kissjenn

Hi,

You do NOT get overall interest by adding two rates together.

I can give you a simple example

10% on first card with a balance of £100 = £10 interest

10% on second card with a balance of £200 = £20 interest.

Combine them thats 10% interest on a card with a balance of £300 = £30 interest.

NOT

20% interest on £300 which would be £60. Double the amount.

Hope that helps.

tina1981

Thanks, that does help, me and hubby were talking about this last night and that's what we thought too.

I'm getting more and more annoyed. I am beginning to think the woman doesn't have much of a clue and yet I still blinking signed to this new contract/loan.

Grrrrr... now I'm stuck with this loan with higher APR. Crap is right that we can pay more per month if we want but I still feel very annoyed now.

She must have seen me come down in the last shower x

mrmajika

How did you apply for the loan? Was it over the phone or in branch?

I know that over the phone with LTSB you have a 30 day cooling off period. I'm not sure how this works if you applied in branch.

At 24.5% the loan will not be saving you much, if any interest. The credit card was 17.9% as you say (unless you took out cash withdrawls which are charged at 30%ish)

It sounds that the person you were dealing with was either incompetent or, worse still, deliberately trying to mislead you. It is on these grounds that you will have to get the loan cancelled if it's outwith any cancellation period.