Missold loan

TooLoose

Hi all.

Just over 12 months ago My overdraft was £1100 (still is). I was on Incapacity benefit and still am.

I was nearly at the top of my overdraft, maybe I was over.

The bank offered me a loan saying it would be cheaper than the overdraft. I just accepted as I was worried about my financial situation and just thought great......Money . They gave me a loan for £1500 but the rate was at a higher rate than the overdraft rate.

I'm only just looking at my bank statements/ financial affairs and I'm now wondering if there is anything I can do about it? Although I did take the money and now feel cheeky looking into although I don't think they should have offered it really especially as they missold it to me whilst I was on benefits!

Regards

TooLoose!

unhappy_with_ecar

The bank will argue that the APR was shown on the agreement and that you weren't obliged to take the loan with them. Raise it as a complaint saying you were vunerable at the time and that you felt pressured into accepting the agreement which was not properly explained to you. Explain what outcome you want from the bank, its likely they will send you a final response saying tough. However at that point you can take it to the Financial Ombudsman, the bank will have to pay towards the costs of the Ombudsman and may then be willing to negotiate to settle the complaint.

Alternatively if you are struggling, it may be easier to speak to your bank about your situation and to agree new ways to repay the loan and overdraft. Often you can end up getting interest and charges frozen which would be a far better result for you, there aren't any interest free loans out there! There are some good tips on talking to your bank on this website, the national debtline website is also a good source of information.

TooLoose

Thanks unhappy.

This loan was with Natwest. I had just accepted I'd have to pay it until getting some other letters through from RBS that they were referring me to credit agencies because of another student account that was now nearly £300 in the red. I used to start an Ebay account maybe 3 or 4 years ago but didnt use the account. I think Ebay may have tried to take £10 or £20 out of it and now its upto nearly £300.

I now dont just want to lie down and take it especially with the banks being linked. So I'm not sure what to do. I'll have another reread of the reply and maybe some other things when I've got my thinking head on!

Too Loose