Mis-sold Loan?

Emilly80

Hi
I'm new so go easy on me!
My ex partner and I (we were together at the time) took out a loan in September 2008 with Black Horse, to consolidate credit cards.
We went into branch and agreed on a loan for 4k, and we wanted it over 4 years.
I can remember (so can my ex) distinctly it being over 4 years.
So we were given forms, and tiny tiny little print, and I just put them all in a folder. (unsigned) and signed things in the office when agreeing on the loan.

Just the other week we were mentioning how nice it will be next year to stop paying the loan.

Today I receive an annual statement from Black Horse.
It says we still have 2800 to pay. I thought that sounded wrong so phoned them.

He told me on the phone "Your loan was for a MINIMUM term of 72 months, you pay back so much interest each month it will take another 5 years before it's finished".

I was shocked, and told him it was a 4 year loan, he said he would check the original documents, and said no, it's minimum 72 months. I got out the old folder, and sure enough in small print on the UNSIGNED papers, it said minimum term 72 months.

He then told me I'd be best off getting another loan with someone else on a lower interest rate and paying this one off.

I feel we were mis-sold this, and we agreed on 4 years.

I have rang Citizens advice and they will get back to me, but wondered if anyone here could offer any advice.

Many thanks.
Em

McKneff

So you took all the forms home in a folder and didnt bother to read them, took them back and signed them in the office.
Forget what was actually said, its what is on paper and signed for that is relevant.

If you had read the T & Cs you could have gone back and said 'this is not what we want'

So why is that their fault.

Emilly80

They were the ones he went over with in branch, and we didn't even notice (I can't even remember why we didn't notice or go through those).
There's not much point in you replying to just state it's my fault. I am just asking if there is anything that can be done about it in the position I am in now.
Thanks for replying though.

molerat

You signed paperwork and you both have that paperwork. Can you now see the difficulty of trying to prove the contract was meant to be anything other than what you signed.

Tixy

Hi

If the papers you signed that they hold state that the loan is over 72months then despite what was said to you there is nothing you can do to alter it.

Perhaps you could look to see if overpayments are allowed on the loan? If they are, can you afford to overpay? which will not only mean the loan is paid off sooner but will reduce the total interest you have to pay.

What is the APR on this loan? Another alternative might be for you and ex both to see if you can get separate loans for half the settlement figure at a cheaper APR, to pay off this loan. Again that would save in interest and would also mean you would no longer need to be financially associated with each other and therefore impacting on each other's credit files etc.

Dabooka

What have the repayments been? Have you missed any of them? Does it mention an APR ont he paperwork?

It certainly sounds like it is you and your (ex)partner's fault, but now you need to look at an alternative plan.

fracturedsun

I can understand you feel you have been lied to. Unfortunately the terms on the agreement you signed are what you have legally agreed to, I'd be happy to be wrong but whilst it would have been different if you had noticed when you got home and gone back to the bank within a few weeks I don't think you'll be able to make any sort of claim now three years later.

Your best bet now is probably to try and work out the cheapest way you can pay off the remaining debt without accruing too much interest. Good luck.

CHR15

It certainly isn't mis-sold (we love that term on here!) as it is exactly what the paperwork states.

The advice the bank gave you is good - get another loan at a cheaper rate and pay it off.

Out of curiosity it would be nice to know the APR and the amount you are paying. When we see this type of question a quick bit of maths will show the monthly payments wouldn't have even repaid the capital of the loan, let alone the interest.

Bear in mind there is no guarantee you would have been accepted for a 4yr loan with them under your perceived terms in the first place, especially if it was to consolidate.

The same applies now, there is no guarantee you will be accepted for a new loan with a low APR so go careful with the applications/searches.

chalkie99

You say it was taken out in Sept 2008 and you still have another 5 years to pay, and you say you still owe £2800.

That is £46.67 per month.

Is that what you are currently paying?

If so, after 4 years you would have paid back only £2240 on a £4,000 loan.

Something wrong with the figures or missing from your story somewhere.:huh::huh::huh: