mis sold bank loan, based on the interest please help

nbrsmith

Hi Folks

I have had a lot of success got PPI over 1200 and got bank charges back 300. But i am not sure what to do about this problem i have

i took out a non secuired load after getting 3 quotes from high street banks.

I was offered 2 different kinds of loans, one where the interest was all paid in the beginning and the capital at the end, or an equal interest charge split during the whole term of the loan

I went with the load that said the interest was split equally each month as i always planned to pay it back early , it was a no brainer as it would save a fortune in interest charges paying it off early instead of paying 3 years of basically just interest.

I just called the bank and they gave me the figure to settle the loan and i nearly fell over, i was expecting it to be a lot less, i am in fact paying a loan with all the interest at the beginning with the capital at the end


The guy that sold me the loan even drew me 2 graphs one showing all the interest first with a big down sloaping line and one with a straight line accross, i choose the second, i even took the loan with the slightly higher rate knowing paying the loan early would save me more in the long run.

So what do i do?? is there anything i can do to fix this?

Also does this make sence, please please help

RichGold

Its almost everyday now one of these threads pops up. You should have checked the agreement then before you signed it.
Checking your agreement now will tell you what (if any) rights you have today.

I doubt there is a case for mis-selling here though.

Apples2

You could try posting some figures to give us a chance.

nbrsmith

Thankd for the posts i will have to get back to you with the accurate figures, I actually still have the two graphs the guy made on the paper would that help?

Peelerfart

Use the PPI money and the bank charge money to reduce/pay off the loan.

nbrsmith

Hi peelerfart

I have the money ready to settle the loan i am just annoyed that i have been told the wrong thing, I know i should have examined the contract more carefully, i was just hoping if anyone had had this issue and how they corresponded with the bank and if they got anywhere, like is it a waste of time to try?

opinions4u

I was offered 2 different kinds of loans, one where the interest was all paid in the beginning and the capital at the end, or an equal interest charge split during the whole term of the loan

All loan agreements calculate interest based on the balance at any point in time. some may do so daily, others monthly, but if you owe £10k they will charge the interest on £10k. If you owe £2k they will charge the interest on that.

Because you owe more at the start, the interest costs earlier in the loan are always higher.

There is no credit agreement anywhere that apportions interest charges equally across the term when the debt is falling.

CLAPTON

opinions4u has explained how loans work

however, if you have some documents that show that you were mislead then you may be able to get some compensation

chanz4

Can you prove he drew the graphs?

stonecold_2

I really believe you have a case and if you contact the bank, make a complaint they should look at the evidence you have and any they have and come to a decision. They may reduce your settlement figure, its worth looking into.

I really feel that a lot of people on here are very quick to dismiss the possibility of loan miss selling. I currently look at cases of miss selling of PPI, there is so much evidence that would prove that loans have been miss sold. The commission the salespeople would earn selling these loans meant that any responsibility to ensure customers understanding of what they were getting into went out of the window. I am not talking about small amounts of money either e.g. I listened to a sale where a customer called to to borrow £25,000 to consolidate debts, after 60 mins of being told lie after lie the customer walked away with £79,000. I understand that we are all adults and can make our own decisions but there are always 2 parties responsible in any transaction and both parties should be held accountable.

Believe me these cases are NOT rare, and it is wrong as peoples lives have been destroyed. But my worry is if these cases are investigated on a large scale what will be the effect on the economy? Globally it could have a really negative effect on everybody.

nbrsmith

chanz4 wrote: »

Can you prove he drew the graphs?

Yeah,, well kind of. I have them on the actual Bank Of Scotland letter head piece of paper, it was just by chance i kept it.

I think i will raise the case with the bank and see how i get on. I have went back to the bank and asked for the guy and quote " that guy is no longer here" I asked if he had moved branches etc and the guy went on to tell me he was "long gone after tonnes of complaints from customers about situations like yours". I then asked what i should do, he just said call contact customer services.

So i suppose asking those questions supports my mis-selling complaint.

I will keep you posted

Thanks