LTSB Loan refinancing

us,thecat&thedebt

to cut to the chase my oh has a loan with ltsb which he took out for 6k in march 2005. after a terrible year where illness left him out of employment we have had ups and downs with the repayments

they were orginially 179 per month 5 months ago they helped us out by reducing the repayments for 6 months to 50 per month.

they then said that in 6 months they can reasses the loan again and refinance it with his overdraft at a better apr.

great i thought!!!

well 5 months into the agreement i asked for the loan balance and was shocked to see it is over 8k!!:eek: :eek:

we cancelled ppi about a year ago and had just over 1k taken from the loan bringing to my knowledge the loan to just under 7k (because of interest)

now i am being told that interest is added monthly which we wasnt aware of but it figures!
and because they adjusted the repayments the loan falls into 130 per month arrears of which an excessive apr is charged!!

so near end of agreement loan is 650 in arrears and intrest is being charged at something like 200 per month!

it just seems this loan will never ever reduce!!

to my question! i have been told to call on 15th jan (2 weeks after agreement ends) to arragne refinance.

what should i expect with regards to repayments and apr?

they have said at the end of the arrangement the credit score with lloyds goes back to normal and everything goes back to branch level. (currently with collections)

we would like to pay £150 per month but i have no idea as to what is normal for aprs!

please help thank you

mrmajika

LTSB loans calculate interest daily which is applied to the loan account monthly.

Any monies that have not been paid, ie arrears, attract a higher rate of interest, although I am not sure of the exact figures.

If your partner became unemployed and you had PPI on the loan then you should have been able to claim on this. You can still claim retrospectively.

Collections is the name of the department that deals with loan accounts in arrears. They come to repayment arrangements with customers to clear the arrears.

Your post is a little unclear. Have you almost finished paying your loan? You say that you are nearly at the end of your arrangement. Do you mean the arrangement you have with the collections department?

Once your account has returned from collections you will be able to deal with the branch directly again, but this does not mean that you will be eligible for further lending or 'the best' rates.

LTSB loans range from 6.4% up to 24.9%

For transparency I suppose I should state that I work for LTSB.

Hope This Helps.

us,thecat&thedebt

hi, we couldnt claim on the ppi as he worked for a employment agency, when he became ill he they did not renew his contract. he was eligble for the ppi and never was hence i complained and cancelled it.

the loan has another 4 years to run but the agreement is with collections..

i dont think they are going to offer further lending i think they are just going to combine the total and offer a better rate which doesnt make alot of sense?

awaiting a loan statement which might clear things up..

do you know what rate is typical?

current loan is at 16.9% :eek:

Lennylegs

Hi

Just thought i'd say i had an arrangement with Lloyds collection dept for both mine and my husbands loans, we did the 6 months at the reduced payments and still could not go back to full repayments, we were given to options either we could be passed to a proper 'debt collection agency' appointed by lloyd, reduce our payments further and have all interest stopped or we could re-finance our loan with lloyds and pay over a longer period a lower apr but not affect our credit score. We went with the re-finance given the large sum we owe and the apr is 2% and we're paying over 12 years. I know it seems ages but we can concentrate on the stuff thats at 24.9 etc now and then plough extra money (or not) at Lloyds later. 2% apr was too good to turn down given the sum we owe. Not sure if thats what theyre offering you ? £50 odd per month at a low rate maybe ? All i know is we had to pay ontime everymonth for 6 months before they would consider re-financing.

HTH
L x

mrmajika

Generally, Collections loans are set at a low APR over a long period of time. The poster above is a fairly typical example.

You will not be allowed to borrow additional funds. They will take all your LTSB debt and put it in the one place. Any LTSB credit cards will be closed and any overdraft will be reduced to 0. You will not be allowed to borrow any more money until this new loan has run its course.

MABLE

mrmajika wrote:

Generally, Collections loans are set at a low APR over a long period of time. The poster above is a fairly typical example.

You will not be allowed to borrow additional funds. They will take all your LTSB debt and put it in the one place. Any LTSB credit cards will be closed and any overdraft will be reduced to 0. You will not be allowed to borrow any more money until this new loan has run its course.

I was surprised to note that the interest rate can be as high as 24.9 percent. For some unknown reason when I was asked for a quote via Lloyds internet banking they quoted me 24.9 percent. I then tried a month later and the rate is now 6.4 percent.

betz

My husband and i refinanced with LTSB, before we agreed to take this course i asked if it would affect our credit rating as they were taking away our credit cards and our overdraft facility even though we both had excellent credit ratings. I was told that it was an internal thing and would not affect our credit status and that we could apply again for credit cards and overdraft limit one year after making payments on this new loan, also they would not allow us to take any insurance out on this new loan. i think it is totally barbaric of them as we have always been good customers and i feel we have been treated unfairly, wish we had not refinanced now.

us,thecat&thedebt

betz,
did it affect your credit rating?

nomoneytoday

betz wrote:

My husband and i refinanced with LTSB, before we agreed to take this course i asked if it would affect our credit rating as they were taking away our credit cards and our overdraft facility even though we both had excellent credit ratings. I was told that it was an internal thing and would not affect our credit status and that we could apply again for credit cards and overdraft limit one year after making payments on this new loan, also they would not allow us to take any insurance out on this new loan. i think it is totally barbaric of them as we have always been good customers and i feel we have been treated unfairly, wish we had not refinanced now.

How is it "barbaric" not to allow insurance on a managed loan?