Loan Interest differs from Agreement

Aunt_Flo

Hi there,

I've had loan with RBS since 2008. My agreement states interest rate of 9.9%. I've just recently found out they've actually been charging me a rate of 14.89%.

I wondered how I could never get the figures to work out but thought it was just my terrible maths skills so I sent a SARS request to get a look at what agreement they had at their end. They've written back saying they don't have my loan agreement but sent a few sheets of paper with some details and the rate there says 14.89%

What should i do now? My paperwork clearly states 9.9. Can i ask them to rejig the loan at the rate on my agreement?

Any advice greatly appreciated.

Thankyou.

Wutang_2

Are you angry? also its now 2012

maginot

Double check your paperwork, does it clearly state 9.9% APR and not getting confused with the flat rate.

If it does state 9.9% then you probably do have a case. Send a copy of your agreement and a complaint to the lender and see what they say. You can then escalate it further depending on their response, make sure you keep the original copy of the signed agreement.

Aunt_Flo

Thanks so much for responding.

Yes Wutang I am pretty annoyed but this is overshadowed by feeling like complete eejit for not questioning it earlier.

Maginot, its says 'APR -9.9%' in the 'Key Financial Information' section.

I'll go ahead and get a letter off to them then.

Thanks so much again for your help.

opinions4u

Is it a variable rate agreement?

Aunt_Flo

Says 'Fixed Sum Loan Agreement' on the paperwork.

Wutang_2

you got to be looking at rate not sum, e.g. if it were a variable sum, that would be hilarious! Also, is this right you don't have a loan agreement as therefore it could be unenforceable?

Aunt_Flo

Oh i see what you mean Wutang, sorry (doh!).

I think it's fixed? I missed out a dash, it actually says 'Fixed - Sum Loan Agreement regulated by the Consumer Credit Act 1974'. There's no mention of variable anywhere on the agreement. Can i take it that it's fixed then do you think?

Regarding them not being able to enforce, yes it's true they do not have my loan agreement they said they were 'unable to locate it' in response to my SARS request.

I've looked around but can't really see any advice about non enforcement where there's no agreement. Has anyone had any experience of this or can offer any advice?

Thanks