Barclays rip off loan advice?

redpete

richbhill wrote: »

Basically she took out a 60 month loan last July of £10500 and the monthly payment is £302. APR 19.99%.

Knowingly agreed to by your sister.

Recently Barclays advised her to add her £1000 overdraft to this loan taking the balance even higher.

Again agreed to by your sister. What rate was she payiong on the OD?

This seems really bad advice to me,

Depends on the rate she was paying on the OD.

especially as Barclays have non-secured loan rates of 5.1% for this amount.

That rate has to be paid by at least 51% of those accepted for the relevant type of loan. Your sister's loan could well have been a different product, even if not then it is very unlikely that she would be considered for the 5.1% rate.

I would like to approach them and at least have it transferred to the 5.1% rate,

You have no grounds for asking this.

but actually demand a refund on the exhoribitant interest since lat July.

and no grounds for demanding this.

The redemption fee is one months interest so at the very least we can take it elsewhere for a charge of £175.

Do you have any reason to think she would get a new loan at a cheaper rate?

jonesMUFCforever

No rip off again.

2sides2everystory

lippy1923 wrote: »

As for the classic thread title "rip off" - it's not. Rip off means to cheat someone or deprive someone of something by deceit. As barclays would have had all the information including the 19.99% rate on the paperwork she signed, there is nothing rip off about it.

WRONG go back to school to learn TCF.

iolanthe07 wrote:

People are becoming far too fond of screaming 'rip off' and 'scam' and suchlike, when banks are merely pursuing perfectly normal commercial lending practices.

WRONG go back to school to learn TCF.

R_P_W wrote: »

So she applied for a loan, she was offered a loan, she knew the payment and interest being charged? She accepted it?

What is the problem?

Go back to school to learn TCF.

jonesMUFCforever wrote:

No rip off again.

WRONG go back to school to learn TCF.



A 20% loan rate in this environment is obscene.

I am borrowing several multiples more than the OP's SIL from the same bank at 1.45% and I am investing a large chunk of it in a Nationwide ISA at 4.25% tax free.

Five years ago if this bank charged you 20% you might wonder if you were a high risk but as of late 2008 the banks were discovered to be careering out of control - remember? They have been out of control ever since. Stop telling people they are high risk when they aren't.

The banking industry is totally unfit for purpose and if you work in it so are you unless you stop propounding nonsense.

27col

Someone seems to have a singular lack of knowledge of the nature of loans and of the meaning of the words rip off.

gb12345

2sides2everystory wrote: »

WRONG go back to school to learn TCF.

WRONG go back to school to learn TCF.

Go back to school to learn TCF.

WRONG go back to school to learn TCF.



A 20% loan rate in this environment is obscene.

I am borrowing several multiples more than the OP's SIL from the same bank at 1.45% and I am investing a large chunk of it in a Nationwide ISA at 4.25% tax free.

Five years ago if this bank charged you 20% you might wonder if you were a high risk but as of late 2008 the banks were discovered to be careering out of control - remember? They have been out of control ever since. Stop telling people they are high risk when they aren't.

The banking industry is totally unfit for purpose and if you work in it so are you unless you stop propounding nonsense.

Ah the ramblings of a deluded idiot.

2sides2everystory

gb12345 wrote: »

Ah the ramblings of a deluded idiot.

And you are?

I happen to know what I am posting about - your excuse?

gb12345

2sides2everystory wrote: »

And you are?

I happen to know what I am posting about - your excuse?

Really, you don't give that impression - you just appear to be talking a load of indoctrinated rubbish - remove your tin-foil hat and come and join the rest of us in the real world (you know the one where banks make commercial decisions based on the risk of lending to certain people).

greenlightluke

2sides2everystory wrote: »

WRONG go back to school to learn TCF.

WRONG go back to school to learn TCF.

Go back to school to learn TCF.

WRONG go back to school to learn TCF.



A 20% loan rate in this environment is obscene.

I am borrowing several multiples more than the OP's SIL from the same bank at 1.45% and I am investing a large chunk of it in a Nationwide ISA at 4.25% tax free.

Five years ago if this bank charged you 20% you might wonder if you were a high risk but as of late 2008 the banks were discovered to be careering out of control - remember? They have been out of control ever since. Stop telling people they are high risk when they aren't.

The banking industry is totally unfit for purpose and if you work in it so are you unless you stop propounding nonsense.

The posters aren't wrong and you are deluded. 20% loan rate isn't obscene at all - If you couldn't afford the repayments you shouldn't have took the loan. Just because you can get a lower rate doesn't mean any one else should or will.

Pay day loan's rates are obscene - this isn't obscene. Too many people scream rip-off when everything goes bottom's up because they FAILED TO READ the documents they were sent.

meer53

2sides2everystory wrote: »

WRONG go back to school to learn TCF.

WRONG go back to school to learn TCF.

Go back to school to learn TCF.

WRONG go back to school to learn TCF.



A 20% loan rate in this environment is obscene.

I am borrowing several multiples more than the OP's SIL from the same bank at 1.45% and I am investing a large chunk of it in a Nationwide ISA at 4.25% tax free.

Five years ago if this bank charged you 20% you might wonder if you were a high risk but as of late 2008 the banks were discovered to be careering out of control - remember? They have been out of control ever since. Stop telling people they are high risk when they aren't.

The banking industry is totally unfit for purpose and if you work in it so are you unless you stop propounding nonsense.

We're not saying the OP's SIL is high risk, Barclays are.

Doesn't matter what rubbish you spout (and you spout a lot) it was Barclays who offered the loan and the OP's SIL who signed to accept it. Banks are no longer out of control, quite the opposite, as people who are trying to borrow now are finding out.

2sides2everystory

greenlightluke wrote: »

The posters aren't wrong and you are deluded. 20% loan rate isn't obscene at all - If you couldn't afford the repayments you shouldn't have took the loan. Just because you can get a lower rate doesn't mean any one else should or will.

Pay day loan's rates are obscene - this isn't obscene. Too many people scream rip-off when everything goes bottom's up because they FAILED TO READ the documents they were sent.

They are wrong and I can tell you are not long experienced in this field.

Just because you shed the wetness behind your ears in the last few years and experienced obscene "normal" loan rates well over 10% when the base rate is at a record low does not mean you know what is normal.

Until the autumn of 2008 or maybe even later Barclays matched any other rate. You probably didn't know that. Assorted banks were putting posters in windows for loans at 6% and they were giving them quite freely too. Double digit rates were somewhat unusual until 2009 and yes, if you took one from Barclays at that time then there probably was something high risk about your affairs.

Yes something else has happened in the last five years - Wonga and payday. You think they define what is a high rate perhaps? So banks can requalify their obscenity as not quite as obscene as Payday outfits - is that your premise ?

Resits for you too I think

meer53 wrote:

Doesn't matter what rubbish you spout (and you spout a lot)

Still taking the shilling at First Direct, are we?