Barclays rip off loan advice?

gb12345

richbhill wrote: »

and then include her expensive loan in the mortgage balance.

As long as she fully appreciates the risk of doing this - as it is not usually recommended to move unsecured debt to secured.

gb12345

2sides2everystory wrote: »

I'd be interested in understanding what gb12345 is warning when learning that you and your SIL are considering consolidating unsecured debt into secured debt save for the fact that secured debt is more difficult to walk away from if you get into future difficulties.

Just that, and the fact that she is converting a fixed rate to a variable (but as her mortgage rate is unlikely to reach 19.9% she should be safe on that) - the OP has already covered the fact that even with the longer term she will still save money overall, which would be a possible concern of stretching the term.

GDVS

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?

I'm saying they don't give advice.

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:

You were the one that brought up TCF, I assumed you were talking about the actual TCF guidelines that came out of the FSA rather than some hypothetical variant that doesn't actually exist.

Stupid_Question

2sides2everystory wrote: »

Anyone who has taken a new loan since early 2009 is almost certainly being ripped off. There is absolutely no link between your SIL's true creditworthiness and the 19.99% rate or any other rate offered by a bank. They charge what their computer is programmed to charge to support the cartel. The computer doesn't know your SIL. Your SIL is not "entitled to" any particular rate. What she is entitled to is fairness and precious few working in banks have any concept of that any more.

I buy a coffee everyday, this costs £3, i doubt it costs the business anywhere near £3 to make. This is not a rip off this is the cost of something, something I have the choice of taking or not.

Exactly the same way no one is forced to take a loan at a high rate. The loan is offered, the customer has a choice. Fairness doesn't come into it. Personal responsibility should.

richbhill

Thought I'd give you an update, back on thread!

So, after planning some of the measures I mentioned above, we decided that my SIL needed to increase her overdraft by £250 on a temporary basis to make sure she didn't go over her existing limit this month until we'd sorted out her cash flow. So she contacted Barclays and this is what I wanted to report to you all on.

What she experienced is what I would consider really hard sell tactics to try and get her to take out a further loan at 20%. This is absolutely not what she needs and she was very clear that she needed just some temporary flexibility. The guy kept her on the phone for 55 minutes and still would not accept her position so told her he wanted to let her think about this for 20 minutes and he'd ring her back which he did. He again tried to sell her this loan but she held firm and insisted on a yes or no to her request.

In the end, he agreed to the request. But this took two hours. Not two hours of advice and considering her position but two hours of pushing their product.

I know there were lots of reactions to my initial post saying how it was my SIL's fault for accepting the loan, to which I agreed, but this in my view is an example of poor customer service when someone was in need of good advice.

I know that without our guidance, that that my SIL would likely of accepted the sales pitch. The must be many people who fall into this category.

We need our banks to operate like honest trustworthy businesses supporting their customers in difficult circumstances, not acting like aggressive sales engines. I just don't think its appropriate.

As part of the restructure of my SIL's finances we will be moving away from Barclays. Probably to First Direct who I've always had very good experiences of, however I have no experience of how they might treat the same situation.

Again, interested in all your views.

meer53

If one bank sees your SIL as a risk, others will probably see her the same way. Even more so if she is a new customer so if she is moving banks, i'd allow a good few months before applying for any lending from them. 6 months at the very minimum.

Space_Monkey

richbhill wrote: »

Thought I'd give you an update, back on thread!

So, after planning some of the measures I mentioned above, we decided that my SIL needed to increase her overdraft by £250 on a temporary basis to make sure she didn't go over her existing limit this month until we'd sorted out her cash flow. So she contacted Barclays and this is what I wanted to report to you all on.

What she experienced is what I would consider really hard sell tactics to try and get her to take out a further loan at 20%. This is absolutely not what she needs and she was very clear that she needed just some temporary flexibility. The guy kept her on the phone for 55 minutes and still would not accept her position so told her he wanted to let her think about this for 20 minutes and he'd ring her back which he did. He again tried to sell her this loan but she held firm and insisted on a yes or no to her request.

In the end, he agreed to the request. But this took two hours. Not two hours of advice and considering her position but two hours of pushing their product.

I know there were lots of reactions to my initial post saying how it was my SIL's fault for accepting the loan, to which I agreed, but this in my view is an example of poor customer service when someone was in need of good advice.

I know that without our guidance, that that my SIL would likely of accepted the sales pitch. The must be many people who fall into this category.

We need our banks to operate like honest trustworthy businesses supporting their customers in difficult circumstances, not acting like aggressive sales engines. I just don't think its appropriate.

As part of the restructure of my SIL's finances we will be moving away from Barclays. Probably to First Direct who I've always had very good experiences of, however I have no experience of how they might treat the same situation.

Again, interested in all your views.

There's nothing to stop her trying to get a 5.1% loan, we did it, do it on-line so you don't have to speak to a sociopath as well.
Probably be better than re-mortgaging, and don't blame her, some, as you say are easily intimidated.

Best of luck,

SP