Mis sold loan

lassie123

Hi can you please advise , my wife recently has taken out a loan to pay off debts and the girl in the bank gave her a loan which the payments were lower than she was paying off the cards,however when she got home the apr was a massive 24.9% and there is a early redemption fee of which were not explained during the loan process, she was just asked to sign the form and not shown the conditions before signing , can we do anything and who should we take the complaint to?

zppp

lassie123 wrote: »

Hi can you please advise , my wife recently has taken out a loan to pay off debts and the girl in the bank gave her a loan which the payments were lower than she was paying off the cards,however when she got home the apr was a massive 24.9% and there is a early redemption fee of which were not explained during the loan process, she was just asked to sign the form and not shown the conditions before signing , can we do anything and who should we take the complaint to?

Well, a loan will have a cooling off period so I suggest you read the agreement that was signed. If she doesn't have the agreement, get her to go back to the branch to cancel it within the cooling off period (normally 14 days).

Re not knowing about redemption penalties etc, this is all in the loan agreement forms that were signed - are you saying that your OH did not read anything on the paperwork?!

By the way giving someone the option of taking a loan is not misselling, some credit cards cost more than even a 25% APR, so don't even go there.

lassie123

Thanks for your reply but she was asked what she could afford and the loan was calculated from that, just thought the bank should have a duty of care to explain the apr and redemption fee, it was all very sneakerly done and when the girl printed the agreement she only gave my wife the back page to sign and then popped it in an envolope, we could not go back on the loan because the girl organised for all the credit cards to be paid off whilst my wife was in the bank so the funds had gone.

iolanthe07

If she signed the agreement on the bank's premises then I don't think the 14 day cooling off period applies, but you might want to check this out.

dmg24

lassie123 wrote: »

Thanks for your reply but she was asked what she could afford and the loan was calculated from that, just thought the bank should have a duty of care to explain the apr and redemption fee, it was all very sneakerly done and when the girl printed the agreement she only gave my wife the back page to sign and then popped it in an envolope, we could not go back on the loan because the girl organised for all the credit cards to be paid off whilst my wife was in the bank so the funds had gone.

Why did she not ask to see what she was signing? Did she not ask what the APR was?

fozmcfc

What you have to also consider, is in the long run, the loan will get paid off in a set amount of time and there is an end date, a goal if you like. The repayments are set and less than she is already paying.

A large amount on a credit card, could take years more to pay off, if your wife only pays the minimum we could be taking 5, 10, 15 years more and the total amount could well end up double, triple or even more than the loan.

Before you do anything you should see what the APR on the card is and work out exactly how long and how much it would cost if she continued paying the card as she has been.

Finally nothing to stop the APR on the card going up either, the loan I assume is set.

Common_Sense_2

As it was signed on trade premises i doubt the cancellation rights would be available. As mentioned by earlier posters, the onus is on the person signing to read and agree to the terms and conditions of the agreement. i'm sure that if you look, beside her signature will be the phrase "sign it only if you wish to be bound by it's terms". The redemption fees woudl have been on the agreement document so it cannot be said that they were hidden.

AS you say, she is paying back less than if she carried on paying for the cards seperately so even if teh APR seems high to you, it's better than the cards.

on the 'Mis-sold loan' part of your question - your OH went in asking to pay less per month, you was given a loan that met those needs therefore it would be difficult for anyone to say that the loan was mis-sold.

Unfortunately you will have to put this down to a learning experience and remember to read everything before you sign it!