Advice about an unsecured loan..

CalCal

In 2002 I was given a 7 year and 3 year loan which would run concurrently. I thought I was getting a 10 year loan. Turns out, BOS doesnt do 10 year loans and this was given to me instead. I had to take out this loan to repay the debt I had run up on charges and credit. This has ruined my life! I am now 43 and paying debt is getting me nowhere.
I was wondering if the selling of 2 loans which run concurrently was legal. I mean, how can I be sold a 3 year loan in 2002 when it's not due to start until 2009? I am looking into reclaiming my bank charges...any help or advice would be greatly appreciated.
Many Thanks for your time and considerations
Cal

clairbear1000

Have you got any more details? If they were concurrent then you would have had them both at the same time.

Surely the 7 year loan is paid if it started in 2002? and if the 3 year loan started in 2009 then you must be able to see the end.

What payments are you making, is it to both or one still?

I'm sure someone else can answer the validity questions.

CalCal

What I mean is that the 7 year loan was repaid and the 3 year loan started the following day as a seperate loan. Both loans were signed in 2002. By their own admission, they do not provide 10 year unsecured loans and I think that the circumstances surrounding the "sale" of this financial product to me seems less than straightforward. ie. I had been plied with credit, hammered with charges and then sold a loan that was convenient for the bank. How can they sell 2 loans for a 10 year period when they have no single product that covers this timescale? I cant see the end as the time involved and the financial committments have meant I have spent 8 years treading water and not really making any progress....Thanks for your reply Clair, it's nice to know someone has read my post.

zppp

CalCal wrote: »

What I mean is that the 7 year loan was repaid and the 3 year loan started the following day as a seperate loan. Both loans were signed in 2002. By their own admission, they do not provide 10 year unsecured loans and I think that the circumstances surrounding the "sale" of this financial product to me seems less than straightforward. ie. I had been plied with credit, hammered with charges and then sold a loan that was convenient for the bank. How can they sell 2 loans for a 10 year period when they have no single product that covers this timescale? I cant see the end as the time involved and the financial committments have meant I have spent 8 years treading water and not really making any progress....Thanks for your reply Clair, it's nice to know someone has read my post.

I am afraid you are going to be dissapointed with what I am about to say, please don't shoot the messenger before I begin!

Whilst they may not process loans for up to 10 years, some banks do, RBS do 10 year unsecured personal loans, so it is possible. You would've signed agreements stating you were happy with this at the time.

Re, loan accounts that are concurrent, it is possbile to hold several loans with the same financial institution. There may be specific reasons for doing this, i.e. to save a better APR than what it would cost to add borrowing onto an existing loan. Lenders shoul check affordability, as long as it is deemed affordable that is fine.

As for being plied with credit, you used the money to consolidate your debts, had you have not taken out the loans to do this, would you not be in a similar, if not identical financial postition now? It is ok for you to say all of this now, but if you were to sign an agreement for a mortgage over 10 years, would you be saying the same?

What was it that you want BOS to do, because IMO, they have lent you the funds, and now you have to keep up the repayments?

the_bandit

It does seem odd that at the time of the loan they could not offer a single deal of 10years but instead were able to offer a 7yr and a 3yr deal to run concurrently however that being said I'm sure it's all legal.

You say that you have spent the last 8yrs treading water and not really making any progress. I would say that you have spent the last 8yrs paying back the money you spent in the first place and will continue to do so for the next 2yrs. You borrow the money then you must take responsibility for your actions and pay it back.

Simples!

CalCal

Thanks for this. Some helpful info. What I would say is that its not a question of not paying back borrowed money. Its a question of being sold a "Product" that doesn't exist to "help" a customer who has been "manipulated" into a position where he cannot refuse what is on offer. My argument is that if the product does not exist (ie. a 10 year loan), why is the product manufactured from 2 seperate loans and is this in the best interest of the customer or the best interest of the banker and the commission that will be paid out on completion!? I need to check on the validity of this operation and how it relates to the banking code but not sure where to begin. I'm guessing there aren't many posts like this one because it is not common practice...Indeed, I know staff at one bank who say they wouldnt be allowed to manufacture loans in this way...just wondered if anyone had further info....

zppp

CalCal wrote: »

Thanks for this. Some helpful info. What I would say is that its not a question of not paying back borrowed money. Its a question of being sold a "Product" that doesn't exist to "help" a customer who has been "manipulated" into a position where he cannot refuse what is on offer. My argument is that if the product does not exist (ie. a 10 year loan), why is the product manufactured from 2 seperate loans and is this in the best interest of the customer or the best interest of the banker and the commission that will be paid out on completion!? I need to check on the validity of this operation and how it relates to the banking code but not sure where to begin. I'm guessing there aren't many posts like this one because it is not common practice...Indeed, I know staff at one bank who say they wouldnt be allowed to manufacture loans in this way...just wondered if anyone had further info....

I think the point you are missing, is that they can 'manafacture' loan products in whatever they want, as it is their money they are lending you. How does it matter whether there is one loan account or two? It makes no real difference as they run concurrently.

Re the banking code, this doesn't exist any more, and if my memory serves me right has nothing to do with this situation. Can I ask or clarification, what are you hoping to achieve by this? You are not going to get out of your contractual agreement I'm afraid.

Wutang_2

CalCal wrote: »

I had to take out this loan to repay the debt I had run up on charges and credit. This has ruined my life! I am now 43 and paying debt is getting me nowhere.

Would you not have been paying more for longer if you had stuck with the chargres and credit card - hence you going for this loan??

And did you not agree to all this initially?

Bank charges - different section

Is it legal? - why you asking when you've almost finished paying it all??

CalCal

Just because ive nearly finished paying it all doesnt mean I cant question it's validity. What I agreed to was a 10 year loan. Not a 7 year and 3 year loan. I thought I covered all this...

Fiddlestick

CalCal wrote: »

Just because ive nearly finished paying it all doesnt mean I cant question it's validity. What I agreed to was a 10 year loan. Not a 7 year and 3 year loan. I thought I covered all this...

This has been asked several times and you have not answered yet, so I shall ask it again:

What exactly is it that you want to achieve here?

corbyboy

CalCal wrote: »

Just because ive nearly finished paying it all doesnt mean I cant question it's validity. What I agreed to was a 10 year loan. Not a 7 year and 3 year loan. I thought I covered all this...

I don't understand what the issue is here. Are you claiming you were deceived by the bank?

Reading between the lines I think you were expecting to hear "this loan was missold, you are entitled to a refund." Sorry but you won't.

While the bank may have done something slightly unusual, it has not been to your detriment. You asked for a 10 year loan. You got a 7 year loan followed by a 3 year loan. That is the same thing. Can you explain how you are financially worse off by having a 7+3 rather than a 10?