Is my Loan unenforceable? Is the charge for credit and interest rate fair?

2sides2everystory

I have posted a suggestion about the original query raised by the OP but I have posted it here in the Forum Policy & Rules section where I understand such avantgarde 'Loans' stuff may find its rightful place

Tixy

I've read your reply in the other section (despite it being ridiculous in my opinion to put the comments specifically relating to this thread and the relevant figures on it there rather than here - I don't know what point you are trying to prove with that).

Yes I did some initial calculations on a spreadsheet and actually I though the cost of credit looked at little low based on the intial capital, term and interest rate. On my quick calc last week (which I just re-created today) I make that the total cost of credit would have been around £6700. This was just a rough calc and I knew it wasn't totally accurate so I then looked at an online loan cal - this is the one i always use - http://yourmoney.moneyadviceservice.org.uk/tools/loan_calculator.html and interestingly that comes out with a total cost of credit of £6425. Pretty damn near the same as what the OP had posted his cost was, close enough certainly without having the whole agreement to check all the dates etc.

I don't know how you came up with your calcs that said the cost of credit would be several hundred pounds less based on the info in the initial post.

Now on to your other points about this thread - the poster asked if his loan was unenforceable because of the high cost of credit - well the answer to that was no. Is it legal - yes. If he was charged the amount he signed up to then that is correct and the loan is enforceable at least on that point.

He asked if the amount he was charged was fair. Well fair is very hard to define - and just because something was expensive doesn't mean it wasn't fair. The bank he applied to offered this rate of interest and he accepted. We have no way of knowing whether he personally could have got a better rate back in 2005 given all his personal circumstances at that point in time. Maybe he could, maybe he couldn't, either way it doesn't mean it was unfair.

ILW

From waht I have seen from 2sides posts, they seem to think that the banks are ALWAYS at fault, no matter what the circumstances.

2sides2everystory

Interesting Tixy. I posted my query over there because anything that doesn't suit the regulars over here causes so much hassle !

Actually I think my spreadsheet contains an error this time and the gap I was suggesting should be investigated has dropped to £200 (in the opposite direction to your rough calculation Tixy). But I will concede now at risk of further ridicule that actually the cost of credit at a level 10.9% is probably close enough to be in the right ball park if it was originally stated at £6451.08 and the actual loan applied for without any additional amounts added in anywhere for PPI was indeed £10,500.

I apologise for the suggestion that I'd found a potential much larger £700 that might have taken a 6 month payment holiday to explain. I am kind of glad I didn't make that particular incorrect claim in the full glare of the lights over here in the esteemed Loans forum, now
What would they have thought had they seen it ?

But it still leaves the question about exactly how PPI did fit in with this loan and also how much a month the OP was actually paying. I more or less agree that the monthly payment without PPI should have been £142 give or take 25p. My spreadsheet is not a rough calc, it's a pretty accurate one (now!)

Apples2

I don't normally put people on Ignore, even those who blatently troll.

Ironic username of 2sides, where his pointless wittering posts have only one side...his.

He's been called a Troll before, I'll second it.

His posts are that of a stereotypical militant University student rep. Just wants to argue the toss for the sheer hell of it but has zero understanding of his own point of view.

2sides2everystory

You think?

So Apples2 what exactly are you that you should so tersely dismiss someone like me and stereotype me too?

Where can I see your mark for the public good in this universe exactly?

ILW

2sides2everystory wrote: »

You think?

So Apples2 what exactly are you that you should so tersely dismiss someone like me and stereotype me too?

Where can I see your mark for the public good in this universe exactly?

To save that happening, what do you do for a living?

2sides2everystory

Stereotyping is always a mistake, isn't it? My living has however equipped me with well-founded views from the inside of the financial services industry.

LovelyLeeds

2sides2everystory wrote: »

So Apples2 what exactly are you

It would appear Apples 2 is shocked to the core and wont see your reply.

somethingcorporate

2sides2everystory wrote: »

Stereotyping is always a mistake, isn't it? My living has however equipped me with well-founded views from the inside of the financial services industry.

You do seem to have a bee in your bonnet about it tho!

A giant killer bee that blows smaller killer bees from its mouth for that matter.