pressure from Nat West to take out a loan

patricia49

My son has a good job but is up to his overdraft limit every month and is almost up to his credit card max. He pays his overdraft charges every month and as much as he can off his credit card. His total debt is £4000. His bank Nat West called him in last week and put him under intense pressure to take out a loan to pay off these debts. He was given an ultimatum and told he had 48 hours to agree to take out the loan. The salesperson, a mature woman acted all mumsy and said she only had his best interests at heart and that he was lucky his credit record was so good that they were willing to offer him a loan!!!!! This is purely pressure selling and the only interest she had was to make her sales target. I have spoken to friends about this and find it's not an isolated case and not just with NatWest. Just how much more damage are the banks prepared to inflict on hardworking customers for their own greed. Luckily my son resisted and came to me for advice, but how many youngsters would have agreed to take the loan. I wish I knew her name, I'd make sure she was reported for her underhand conduct.

jen_a_c

This is the reason it makes me laugh when I see Natwest advertising their "moneysense advisors", haha.

debtfreesomeday

This happened to me with Lloyds when I left university 9 years ago and was the start of my spiral into debt. My so-called 2 years interest free graduate overdraft was pulled simply because 'they could' - they're reply to my panic 'well miss X, you'll just have to take a loan out with us to pay it off, and they convinced me I'd need PPI as I'd just started working full time - not knowing any better at the time I believed them! :mad::mad::mad:

Good on your son OP.

lethal0r

he did well. it wasn't until I was about 25 that I began to educate myself about money. its so easy to say yes when you dont understand it. they should teach it at school if they dont yet!

BigDave81

patricia49 wrote: »

My son has a good job but is up to his overdraft limit every month and is almost up to his credit card max. He pays his overdraft charges every month and as much as he can off his credit card. His total debt is £4000. His bank Nat West called him in last week and put him under intense pressure to take out a loan to pay off these debts. He was given an ultimatum and told he had 48 hours to agree to take out the loan. The salesperson, a mature woman acted all mumsy and said she only had his best interests at heart and that he was lucky his credit record was so good that they were willing to offer him a loan!!!!! This is purely pressure selling and the only interest she had was to make her sales target. I have spoken to friends about this and find it's not an isolated case and not just with NatWest. Just how much more damage are the banks prepared to inflict on hardworking customers for their own greed. Luckily my son resisted and came to me for advice, but how many youngsters would have agreed to take the loan. I wish I knew her name, I'd make sure she was reported for her underhand conduct.

I would hardly say there is intense pressure applied, surely saying no thank you and hanging up the phone would have sufficed?

If your son was paying high interest on credit card and overdraft balances and the bank offered a manageable loan at a lower, decent rate I would have said it was something to look in to.

I'll sit back and wait for the abuse now :rotfl:

CLAPTON

what are the APRs of his OD and the CC?
what fees is he paying on the OD?
what was the APR of the proposed loan?
what were the monthly payments of the loan?

if you son has a good job why can't he pay a significant amount off each month
remember that an OD can be called in at any time

ILW

In what way was he "pressured"?

vaporate

I also have a Natwest Graduate account and since finishing university 3 months ago, I have asked to reduce my overdraft limit down from £1250 to £500.

Soon this will be £250 and then £0.

I'm sure your son could have done the same if he was keen?

Never give the bank the tool to net you when deep in the OD.:A
Tell your son to pay as much off as possible and reduce the overdraft facility limit. Or cancel it outright.

Gorgeous_George

Maybe he should get a loan elsewhere, clear the overdraft and credit card. Taking a loan at a lower rate than the OD and CC is commonsense.

NatWest could put pressure on by removing the overdraft facility.

GG

[Deleted User]

BigDave81 wrote: »

I would hardly say there is intense pressure applied, surely saying no thank you and hanging up the phone would have sufficed?

If your son was paying high interest on credit card and overdraft balances and the bank offered a manageable loan at a lower, decent rate I would have said it was something to look in to.

I'll sit back and wait for the abuse now :rotfl:

makes perfect sense to me:money:

MrStuck

Nat West did this to me though I said yes. They said all sorts of things to get me to borrow more. Its totally my own fault I know but I feel if the sales lady had not pushed so hard I would be far better off now.
I have since got ill and cant work for the moment and getting in all sorts of muddles with this ball and chain of a loan round my neck. I think they should be more responsible in there lending. Its unethical.