Natwest Personal Loans, extraordinary!

Julian88

Hi All,

This is my fist tim using the MSE forum and i was hoping to see if any one could shed some light or help me with my predicament.

I have just made my final payment on a personal loan i took out in 2008 with NatWest Bank when i was 18. The loan amount was originally £5000, to consolodate a few bills and purchase a car. Roughly a month or so later i wanted to extend my loan by £1000. This now totals £6000.

My issues now comes with the interest rate/ money i have had to pay back. Since 2008 i have paid back over £12000! double what i was lent. How can they do this? the only thing i was told when i was taking the loan out was that my interest was calculated as high risk, most likley due to my age as i was in full time employment. High risk interest surly cannot be in excess of 100% !!!

Can any one help me with this scenario. Am i eligable to claim some of this money back?

lippy1923

You don't say what interest rates you were offered. What did the contracts say when you signed them? You can speak to Natwest and get them to clarify the payments you have made, but you cannot claim anything back unless it's an error.

Have you defaulted? Had any charges? Just because it's a lot, does not necessarily mean it's wrong. At the end of the day you agreed by taking out the loans.

opinions4u

Am i eligable to claim some of this money back

No. No you're not.

Interest at an agreed rate? Don't be silly.

Did the loan have PPI?

stephane_2

You agreed to the terms at the time....
No....you're not eligible to claim some money back....

plymouthscubagirl

I agree with the others. Unfortunately you would have agreed to the terms and conditions at the time.

My partner also had a Natwest loan for £20k and his monthly payments were £258 each month and even now after 8 years of paying, he was still paying £128 interest EVERY month. :mad: Its taken me quite some time to get him financial savvy, well kind of anyway :cool: The loan interest made me physically sick each month so I have taken out a loan with M and S and will only pay about £300 interest in TOTAL due to putting it over 1 year. Makes me so annoyed though as people don't understand when they sign up, they just look at the monthly payment and think thats fine that they can afford it. I'd hate to actually work out how much he would have paid on that loan in the end.:eek:

bigadaj

High level of risk would equate to a high interest rate. Sounds as though the rate would be somewhere between the mid teens to low twenties, so fairly average for high risk lending, credit cards could be a fair bit more, and payday loans are ina different league, though obviously for smaller amounts.

chambta

You were fortunate to get it at 18. You'd struggle at 18 in 2013.

dealer_wins

Julian88 wrote: »

Hi All,

This is my fist tim using the MSE forum and i was hoping to see if any one could shed some light or help me with my predicament.

I have just made my final payment on a personal loan i took out in 2008 with NatWest Bank when i was 18. The loan amount was originally £5000, to consolodate a few bills and purchase a car. Roughly a month or so later i wanted to extend my loan by £1000. This now totals £6000.

My issues now comes with the interest rate/ money i have had to pay back. Since 2008 i have paid back over £12000! double what i was lent. How can they do this? the only thing i was told when i was taking the loan out was that my interest was calculated as high risk, most likley due to my age as i was in full time employment. High risk interest surly cannot be in excess of 100% !!!

Can any one help me with this scenario. Am i eligable to claim some of this money back?

If the interest rate was in excess of 100% you would have paid £25000+ back.

As to the question of claiming some back, does your loan agreement that you signed have a clause stating you can claim back some of the interest. :rotfl::rotfl:

molerat

Looks like an APR of about 36% so high risk normal lending, nothing to complain about.

BugsyBrowne

Its actually the low risk high credit scoring customers that have put the banks in a mess with the poor savings interest rates not high risk applicants.

debtcutter

If you agree to borrow from someone and agree to pay back an agreed amount, you have to pay that amount.

If you can get a cheaper loan than they are offering, take it out and pay that loan off. If you can't, then I'm not sure what the issue is.

If you borrow for long enough, you will end up paying double, no matter what the interest rate.

A 25 yr mortgage @ 6% would cost double what you borrowed!!!

If you want to pay less in total, then you need to pay more each month to reduce the time you borrow it for.