Barclays rip off loan advice?

2sides2everystory

GDVS wrote: »

I'm not aware of any high street bank that gives advice of any form to non-high net worth clients any more, whether on risk or other matters. The banks lay out the facts, the customer makes the decision. This works better than the previous situation where people were advised by someone with a sales target.

Are you saying that bank staff no longer have sales targets or are you saying that we should no longer talk to them because they are totally unqualified to engage in discussion about what they sell?

Please state which of the six TCF customer outcomes you believe is related to lending risk, I'll explain why you're mistaken.

Oh no. Not another tixboxer ... Don't you have any imagination of proper outcomes of what is fair in business yourself based upon what Mummy and Daddy taught you of good and evil?

Do you only work on the six that were dreamed up over seven bloody years ago pre-Northern Rock, pre-Lehman, pre HBOS/Lloyds, pre RBS pre AIG, pre Qatar, pre just about everything that defines the market today???? They were even drafted by the conniving light touch barstewards of the day who had the temerity to call themselves regulators :mad:

meer53

2sides2everystory wrote: »

Are you saying that bank staff no longer have sales targets or are you saying that we should no longer talk to them because they are totally unqualified to engage in discussion about what they sell?

Oh no. Not another tixboxer ... Don't you have any imagination of proper outcomes of what is fair in business yourself based upon what Mummy and Daddy taught you of good and evil?

Do you only work on the six that were dreamed up over seven bloody years ago pre-Northern Rock, pre-Lehman, pre HBOS/Lloyds, pre RBS pre AIG, pre Qatar, pre just about everything that defines the market today???? They were even drafted by the conniving light touch barstewards of the day who had the temerity to call themselves regulators :mad:

What an absolute plonker. Past their bedtime now obviously.

2sides2everystory

meer53 wrote: »

What an absolute plonker. Past their bedtime now obviously.

A banker calling me a plonker - that's rich. I suppose it is business as usual tomorrow, meer53? HSBC are squeaky clean of course

This stuff just won't go away will it?

Got any confessions before bedtime yourself?


To be continued in another rip off near you ...

meer53

http://www.guardian.co.uk/money/2013/feb/20/hsbc-removes-sales-targets-staff-incentives

2sides2everystory

http://www.law.leeds.ac.uk/assets/files/research/cblp/conf-jan13/back-to-the-future.pdf

richbhill

Thanks for all your replies. Didn't expect to get this much response going!

Some more info for those of you who asked:

My SIL is a Head Teacher, earning circa £50K per annum. She has a good credit history and has been with Barclays as her bank for over 15 years.

Apart from a temporary cash flow crisis, there are no other problems.

I quite agree that she would have been made aware of the terms of the loan and willingly accepted them. Stupid perhaps, but she admits this sort of thing fazes her completely and I suspect she is not alone in this.

I also agree I was wrong to call this a 'rip off'. Although it certainly got some responses going! It's not a rip off like a cowboy builder, but I do think it was poor advise for a good customer who had got themselves into difficulty. I think that is a shame in this environment and also a shame that so many people in this forum jumped to the conclusion that the bank was right and that this treatment was OK.

In my view it's not OK and I shall be helping her move to another bank. In fact after some fairly swift research we can restructure her mortgage, loan etc and save over £390 per month, whilst at the same time replacing her car to cut down fuel costs. So quite pleased with that.

Thanks you for all constructive comments. It was my first ever forum post, so apologies for using inflammatory wording in the title and any other faux pas.

ILW

richbhill wrote: »

Thanks for all your replies. Didn't expect to get this much response going!

Some more info for those of you who asked:

My SIL is a Head Teacher, earning circa £50K per annum. She has a good credit history and has been with Barclays as her bank for over 15 years.

Apart from a temporary cash flow crisis, there are no other problems.

I quite agree that she would have been made aware of the terms of the loan and willingly accepted them. Stupid perhaps, but she admits this sort of thing fazes her completely and I suspect she is not alone in this.

I also agree I was wrong to call this a 'rip off'. Although it certainly got some responses going! It's not a rip off like a cowboy builder, but I do think it was poor advise for a good customer who had got themselves into difficulty. I think that is a shame in this environment and also a shame that so many people in this forum jumped to the conclusion that the bank was right and that this treatment was OK.

In my view it's not OK and I shall be helping her move to another bank. In fact after some fairly swift research we can restructure her mortgage, loan etc and save over £390 per month, whilst at the same time replacing her car to cut down fuel costs. So quite pleased with that.

Thanks you for all constructive comments. It was my first ever forum post, so apologies for using inflammatory wording in the title and any other faux pas.

No wonder some or our schools are in trouble if this is the caliber of their leaders. Sorry.

gb12345

richbhill wrote: »

In fact after some fairly swift research we can restructure her mortgage, loan etc and save over £390 per month, whilst at the same time replacing her car to cut down fuel costs. So quite pleased with that.

A few things about your swift research -

1. Bear in mind that any APRs that have given as illustrations will not be guaranteed and it is not until she has applied and been accepted for a loan that she will know exactly what she is getting.
2. If your savings are due to extending the term of the loan then is she aware that overall, she will likely be paying more for the loan.
3. You mention restructuring mortgage and loan - are you planning on incorporating the curretn unsecured loan into the mortgate to save money? If so then she needs to be fully aware of the implications of doing this.

I don't know what your research was, but Nationwide's soft search will give her an idea of the APR she would be likely entitled to, without putting a full search on her credit history.

meer53

2sides2everystory wrote: »

http://www.law.leeds.ac.uk/assets/files/research/cblp/conf-jan13/back-to-the-future.pdf

You have far too much time on your hands.

richbhill

Thanks gb12345.

We're actually proposing to move her mortgage to a new lender with the same term, but rate drops from 5.5% to 3.6%, and then include her expensive loan in the mortgage balance. I appreciate this means that the £10K loan will then take 15 years to pay off but I still work this out to be significantly lower than what she'll be paying otherwise.

Don't believe that there are any credit issues but will check with the Nationwide tool. Thanks.