Natwest loan forced?

theymademedoit

Hi,
I just want a little advice on a matter that has recently started to bug me.
A while back I had a personal loan with Marks and Spencers and I was happy with the interest and monthly repayments.
At that time I had a Natwest overdraft for e.g. £900.
I went online to apply for a £100 increase and the way it was worded on the website was very confusing.
To cut a long story short I ended up reducing my over draft to £100 instead of making it £1000, throwing me about £700 over my limit and leaving me penniless and I incurred charges.
I instantly panicked and called the overdraft people and they said there was nothing they or I could do.
I then went into the main branch in my home town and was clearly distressed and went in with branch manager.
He said that he could not put my overdraft back to the limit it was at let alone increase it by £100 due to credit rating. We sat for ages and then he started to ask about my present outgoings etc.
He then told me the only way for me to sort this out was to apply for a Natwest loan.
I was then sold a loan at a higher amount than I had with Marks and Spencers.
The loan was to pay off my credit card and the M&S loan.
The early settlement with Marks and Spencers proved expensive as even though I had been paying it for ages, all I had paid back was interest. I now have a big loan which is proving tough to pay.
I can’t help but feel that the bank manager used my situation to his advantage and I am now in financial trouble.
Is there anything I can do or is it my own silly fault?
Thanks for reading.
Al

Londonboy_3

Not much hope of getting any kind of compensation here as you signed the agreeement etc - however, there is no harm in expressing your thoughts in a letter to the Bank.

theymademedoit

Londonboy wrote: »

Not much hope of getting any kind of compensation here as you signed the agreeement etc - however, there is no harm in expressing your thoughts in a letter to the Bank.

Hi Thanks for this, but you hear of people being sold mortgages etc that are not correct for them...my point is, I agreed as I was told that was the only option due to credit, yet they then give me a £20k + loan?

Londonboy_3

Mis-selling is very difficult to prove in practice. The types of products that have been proven to have been mis-sold are investment vehicles such as endowment policies and other types of investment that were sold as virtually certain to pay out a level of income in the future that they ultimately did not.

A credit agreement is much harder I suspect as there is no promise of any future performance etc - it is simply an agreement for the Bank to loan you money which you then repay.

As noted, there is absolutely no harm in writing to the Bank and expressing your displeasure at what happened but I would not bank on any compensation.

CLAPTON

difficult to comment with the very little amount of information you have given

what were the details of the original loan..amount, APR, monthly payments and number of payments?
how much was the CC and what was the APR?

what are the details of the new loan, amount, APR, monthly payments and number of payment due?

if the amount was more that the previous loan plus CC balance what did you do with the extra money?

have you defaulted on the new loan?

why are you struggling to repay... has your income reduced?

[Deleted User]

I've always wondered about this...

If a customer approaches Bank X to enquire about a solution to a given money problem - and let's say there are two solutions, one of which is a credit solution that will cost the customer £Y and another that will cost the customer £2Y, is there any legal or professional regulation that compels Bank X to offer the better deal to the customer.

Or, in other words - and using the OP's example above - does the bank break any rules by encouraging the customer to take the high interest option, or do they have any obligations under the Banker's Code to provide them with the most appropriate solution to their needs (e.g. the cheapest).

I've always been interested in this, as when I was a student Barclays kept refusing me an overdraft because of my 'bad credit' whereas Barclaycard (separate business, but linked) kept increasing my credit limit without me even asking. I always felt that some kind of law ought to be brought in to prevent banks from forcing customers into high-interest situations unfairly.

Apples2

Where would this end if it were possible??

Imagine going into a BMW Dealership to buy a brand new 5 Series.

The Salesman is more likely to try to get you to buy a top of the range 5 Series with all the extras, than he is telling you to go to a Ford dealer and buy a Focus, because it is cheaper and does the same thing.

People need simple educating. Go into Natwest, and they will sell you a Natwest product, even if it isn't the cheapest.

ALIBOBSY

Apples2 wrote: »

Where would this end if it were possible??

Imagine going into a BMW Dealership to buy a brand new 5 Series.

The Salesman is more likely to try to get you to buy a top of the range 5 Series with all the extras, than he is telling you to go to a Ford dealer and buy a Focus, because it is cheaper and does the same thing.

People need simple educating. Go into Natwest, and they will sell you a Natwest product, even if it isn't the cheapest.

No your example isn't the same thing at all. The bank pushed her towards a more expensive product of their own, not someone elses.
The salesman at BMW might push you towards a top of the range car, but he will also offer you the price range so you can pick the appropriate vehicle he sells.

ali x

jonesMUFCforever

And in both scenarios the customer has the right to refuse to do business!

CHR15

ALIBOBSY wrote: »

The bank pushed her towards a more expensive product of their own, not someone elses.

Isn't that the same as persuading someone to take out the extended warranties and having more bells and whistles on the car?

Sounds the same to me, still the customer has to make the choice

barclaysguy

What was the ineterest rate on your old loan with marks, and what is it with natwest. with loans you dont just pay off interest, you have to pay some equity, so unless the natwest loan is a lot higher interest rate it cant be much more expensive.

How long is the loan over and how much have you paid, you may be able to extend it over a longer time to reduce payments if your finding them difficult?