Sainsbury's loan con

PeterRG

Can anyone advise me?
Has anyone else been tricked into payment holidays?
12 months ago I took out a 5 year loan with Sainsbury's. Recently I got my first years statement only to find I had made 9 payments but been charged 12 months interest.
I rang Sainsbury's to ask what was going on and was there a mistake. Sainsbury's told me that I had been given a 2 month payment holiday. When I asked them why this had happened they said, "you had been told about this at the time of taking out the loan. It is in our default script. You could have refused it if you wanted to at the time". I told them "if I had known I would never have taken any payment holiday, I had no need of it"!
This payment holiday effectively cost me an extra £ 122 on a £ 9700 unsecured motorbike loan. Sainsbury's were very understanding but would not return my money and I am unable to prove they never said anything about payment holidays.
I do not remember what was said at the time of taking the loan but I would not have accepted any payment holiday.
I remember ringing them, a couple of months after taking the loan, to chase why payments had not been taken from my account. They said "Don't worry your first payment will happen soon. It just takes us time to set things up". They said nothing about payment holidays.
I feel I have been conned. What can I do?
Have you had anything similar happen to you?

CLAPTON

taken from the Sainsbury website

Loans from £7,500 to £14,999 - Key information

Payment is made by monthly Direct Debit. The first monthly repayment is due three months after the date the loan has been opened. We charge interest between the start of your loan and your first monthly repayment
Interest charging information The interest rate is fixed and guaranteed for the life of the loan. Interest is calculated for the full term of the loan and is applied at the start of the loan Repayment information Payment is made by monthly Direct Debit. The first monthly repayment is due three months after the date the loan has been opened. We charge interest between the start of your loan and your first monthly repayment Repayment period You can choose to repay your loan over 1 to 5 years Amount of Loan available Loans are available from £7,500 to £14,999 in increments of £1 Application / Arrangement fee There is no application/arrangement fee Other fees If you choose the optional courier service to receive your loan agreement, the fee will be payable one month before your first repayment Default fees The following charges will be made if any of the following actions have to be taken: If a Direct Debit is returned unpaid: Up to £25; Letter requesting payment or telephone call to home or business: £10; Pre-default notice: £30; Default expired: £50; Issues of solicitors’ letter, instruction of agency to collect the balance, instruction to solicitor to issue court proceedings or instruction to obtain new address: £50 Repayment information Payment is made by monthly Direct Debit. The first monthly repayment is due three months after the date the loan has been opened. We charge interest between the start of your loan and your first monthly repayment
Interest charging information The interest rate is fixed and guaranteed for the life of the loan. Interest is calculated for the full term of the loan and is applied at the start of the loan Repayment information Payment is made by monthly Direct Debit. The first monthly repayment is due three months after the date the loan has been opened. We charge interest between the start of your loan and your first monthly repayment Repayment period You can choose to repay your loan over 1 to 5 years Amount of Loan available Loans are available from £7,500 to £14,999 in increments of £1 Application / Arrangement fee There is no application/arrangement fee Other fees If you choose the optional courier service to receive your loan agreement, the fee will be payable one month before your first repayment Default fees The following charges will be made if any of the following actions have to be taken: If a Direct Debit is returned unpaid: Up to £25; Letter requesting payment or telephone call to home or business: £10; Pre-default notice: £30; Default expired: £50; Issues of solicitors’ letter, instruction of agency to collect the balance, instruction to solicitor to issue court proceedings or instruction to obtain new address: £50 Repayment information Payment is made by monthly Direct Debit. The first monthly repayment is due three months after the date the loan has been opened. We charge interest between the start of your loan and your first monthly repayment

Cash_Flow

PeterRG wrote: »

Can anyone advise me?
Has anyone else been tricked into payment holidays?
12 months ago I took out a 5 year loan with Sainsbury's. Recently I got my first years statement only to find I had made 9 payments but been charged 12 months interest.
I rang Sainsbury's to ask what was going on and was there a mistake. Sainsbury's told me that I had been given a 2 month payment holiday. When I asked them why this had happened they said, "you had been told about this at the time of taking out the loan. It is in our default script. You could have refused it if you wanted to at the time". I told them "if I had known I would never have taken any payment holiday, I had no need of it"!
This payment holiday effectively cost me an extra £ 122 on a £ 9700 unsecured motorbike loan. Sainsbury's were very understanding but would not return my money and I am unable to prove they never said anything about payment holidays.
I do not remember what was said at the time of taking the loan but I would not have accepted any payment holiday.
I remember ringing them, a couple of months after taking the loan, to chase why payments had not been taken from my account. They said "Don't worry your first payment will happen soon. It just takes us time to set things up". They said nothing about payment holidays.
I feel I have been conned. What can I do?
Have you had anything similar happen to you?

Why dont you make some over payments and save some interest;)

opinions4u

I feel I have been conned. What can I do?

Read your loan agreement next time. They have done exactly what they told you they would do - in writing.

vickyj

Looking at the website it seems pretty clear and exactly as per the first sentance of the loan agreement. They have not buried the info within tiny Ts and Cs either. Did you not read any of the load agreement ? surely on a loan this size you would have wanted to understand all involved?
If you are like my husband and do not think Ts and Cs are particularly important and warrant too much time, then take this as a fairly cheap lesson learned. Always read through an agreement there are very often lots of devious things buried in them. The consequences could have been far worse than £122.

iolanthe07

Sainsburys have always been upfront about their default three month holiday. I had a Sainsbury loan once, read the T & C's, and decided I wanted to start paying back right away. This was arranged without any problems at all. I was very satisfied with their service, tbh.

PeterRG

Thank you 'all' from taking the trouble to reply. It has all been helpful if not completely helping... If that makes sense. I will take all your advice.


I did not take out the loan on the internet. I took it out over the phone. I hardly referred to the internet at all other than to find who was offering what. My terms and conditions say nothing of any payment holiday or that I should look on the internet for more through terms and conditions. Given all your replies, it sounds like I have been given a deal that is offered on the internet though, with web based terms and conditions? This helps, thanks, I will address my latter to Sainsbury's accordingly.
You all are all obviously loan experts. I am not a loan expert, I have no knowledge of who is a good loan supplier or what is normal for Sainsbury's but I did take the trouble to read the T & C's.

PeterRG

Well, Following all your advice I wrote to Sainsbury's and got my money back.

iolanthe07

PeterRG wrote: »

Well, Following all your advice I wrote to Sainsbury's and got my money back.

Excellent result - well done.

Fishingtime

I blame everyone in the world,except myself