Fixed Sum Discrepancies

dickydutch

Hi there. Newbie to this so go easy.....
I took out a loan with Natwest - The paperwork detailing repayments etc, entitled, "Fixed -Sum Loan Agreement", stated that repayments were 158 pound per month, with an APR of 8.4%. This was what I agreed the loan on whilst in the bank.

I have since noticed the standing order which has been set up automatically by the bank is for 172 pound. I went to see the girl in the bank who set the loan up for me, and she admitted she had cocked up, and forgot to contact me to confirm the new payment amounts of 172 pound were correct and that this is what I would have to pay.

Where do I stand with this? As i have the original agreement, am I allowed to insist that this is the amount I repay,(I.e. 158 per month) or are they within their rights to change the sum, and I am now able to cancel if I wished. ( I cant really do that as Ive used the money to buy a car....)

Any information would be greatly received.

Kind Regards,

Rich

dickydutch

anything??

~Brock~

You are entitled to have to repay only what it says on your agreement.

Do all the other figures on the agreement add up? What I mean is that does the total amount payable divided by the number of payments equal the original monthly payment or the new one?

What reason did she give for the !!!! up - is it just that they have set itup at a higher interest rate?

You may well have a perfectly legitimate cause for complaint here.

dickydutch

She didnt really give a reason. The repayments, as they are stated in the form, add up to the total amount repayable. I am going to go and speak to citizens advice bureau before I speak to Natwest again, so as I know exactly where I stand. I cant help thinking that when they set up the standing order for 1762 pound, they were in the wrong as I had not sanctioned this amount to be taken every month. Does this class as being mis-sold?
ANyway - many thanks for your reply. Much appreciated.

nomoneytoday

AFAIK you can cancel a regulated loan within 14 days.

dickydutch

The money has already been spent on a car though! I did think about that.

~Brock~

Unless there is something else that is making up the difference, such as a separate PPI insurance maybe (?), from what you have said, the Nat West have no defence here.

Whether or not you go to the CAB - make a complaint with Nat West directly and follow their published complaints procedure, which they are duty bound to have. Your eventual course could be to the Financial Ombudsman Service, but in the apparent circumstances I would be very surprised that they let it go that far.

Please keep us posted.

dickydutch

I didnt stipulate wanting PPI - if this is what is making up the difference, I assume that they would be in the wrong for charging this without checking with me first? Ive lodged a complaint anyway, and will keep you updated. Many thanks for the advice.