exorbitant APR

daddy1

daughter (working single mum on some benefits) 'sold' unsecured loan @ credit card rates and no early settlement option...now at CCJ for arrears. Any redress against the high street bank that did this?

BoGoF

No.....next

opinions4u

no early settlement option

Of course there's an early settlement option.

Welcome to MSE .

Caz3121

She is an adult and needs to take responsibility for her own actions. I am sure she was not 'forced' to take loans and credit cards - I find a 'no thank you' works well when offered. Did she specifically ask for a loan with early settlement options (although if she has defaulted on the regular payments I assume she would not be able to afford to pay it off early) What was on the paperwork that she signed?

daddy1

paid off early yes, but no saving of overall re-payment. the loan is prior to 2010 change in legislation

opinions4u

daddy1 wrote: »

paid off early yes, but no saving of overall re-payment. the loan is prior to 2010 change in legislation

Which bank?

When was it taken out?

What was the APR?

There will be a rebate against the total amount payable for all the high street banks and building society personal loan agreeements, regardless of the date of commencement.

The total amount payable increases if the borrower doesn't pay on time.

In answer to your question, there is no redress against the lender for lending your daughter money at a rate that she agreed to. Unless you can find a way to prove to a court that it's excessive.

daddy1

Halifax, Aug 2009 30%
statements specifically state that full interest will charged so pointless paying off early ( which i would've done had i known about the loan)

opinions4u

daddy1 wrote: »

Halifax, Aug 2009 30%
statements specifically state that full interest will charged so pointless paying off early ( which i would've done had i known about the loan)

Read them again. They will refer to making overpayments making no difference to monthly interest charges.

Settling the loan in full attracts a rebate and is very different to making overpayments.

30% would not be seen as excessive by a court. It reflects the credit standing of your daughter at the time (and the impact on the Credit Crunch on the lender).

McKneff

dealer_wins wrote: »

Only a retard would take out a loan without needing it, so lets stop all this "sold/mis-sold" cr ap.

There really is no need for this.

And as a poster with nearly 2,000 posts you really should know better as should anyone who 'thanked' you.

DebtFreedom_2

Some of the posters here seem very cruel - we're not in the letters page of the Daily Mail here... aren't we meant to be supportive?!

I've just terminated a Halifax loan early (actually it was with a subsidiary, with very high interest rates).

The Consumer Credit Act allows them to charge up to 58 days interest, but other than that you should be able to terminate. Indeed, I just complained to them because I'd previously partially repaid the loan and they hadn't given me the benefit on the interest I should have saved. Result: Over £1000 repaid, along with some compensation.

My tips:
1. Call during office hours;
2. Ask to speak to their complaints team;
3. Be polite;
4. But be persistent.

They have an obligation to treat customers fairly.

Good luck.

DebtFreedom_2

Yes, I did. However, I still don't see the need for rudeness and unhelpfulness. There's so much misinformation out there, and redress is a word which is banded around so often. Mine was, what I thought, a helpful comment. Apologies if you thought differently.