Was my loan missold?

_Andy_

"I would write into them and see if you can get it re-priced based on the absurdly high rate. " - which is ludicrous and will waste the OP's time

opinions4u

mat5664 wrote: »

A bank like the Halifax giving an £8k loan at that 27.9% is morally questionable for sure - but sadly not mis-selling.

So are you suggesting that they shouldn't have lent at all?

The rate is clear and up front. The customer can say yes or no to it.

I would write into them and see if you can get it re-priced based on the absurdly high rate.

What an utterly bonkers suggestion. One of the best this week.

I presume your credit rating would not allow you to pay it off using a better rate from elsewhere, otherwise no doubt you would have done it.

This is moving towards a more useful suggestion.

Anonymous_m

cos wrote: »

27.9% is a huge rate. I think you owe what they say, I'm afraid. I assume you agreed to the rate.

They said it was a good rate and I had worse quotes. The rate didn't bother me because I could pay it off in about a year. I did it online and by phone. I applied for it through Halifax but the paper work I got said it was Bank of Scotland, I was after told it was Halifax but the person in the branch recently said it was Bank of Scotland

opinions4u wrote: »

The loan agreement has a total amount payable on it including interest. It will be a number between £16,500 and £17,000. Am I right?

Their web site confirms this with the following:

"If you let us know before you make an overpayment we'll apply this to your loan and this will reduce the total amount of interest you pay over the term of your loan and may reduce your loan term." along with a clear explanation as to how to go about this.

Like it or not, branch staff are salesmen. Indeed, they sell numerous products and don't always know the product features inside out. You can overpay. Overpaying will reduce the term. If you explicitly overpay it will save you interest.

Your total mount payable is close to £17,000. You're a third of he way through and a third of the total amount payable has been paid. It makes sense.

If you ask for a settlement figure you get a chunk of the remaining interest due cancelled. So your settlement figure will be less than £8,000.

The interest was higher than the loan but I was planning to pay it off within a year, I only got the loan to improve my credit rating but when I asked if I could pay it early in branch I was told I couldn't because I agreed to a 7 year term.

On the welcome screen on the Halifax online banking it did display that I had a loan and it said I could manage it on there but I couldn't access the page, the loan reference wasn't a link like with my bank accounts.

I have requested the amount so I could pay it off early and they keep telling me the total amount remaining and that it doesn't say how much it will be if I pay it off early.

Anonymous_m

Clive_Woody wrote: »

A rate of 27.9% is not great but the bank did agree to lend the money, there would have been plenty of people who got an outright "no".

I tried other lenders and they said no because I had no credit rating but I had been with Halifax for about a decade and I have an income that's higher than the loan I which wouldn't show up in other banks records

Dogger69

What does your agreement say about early repayment?

Anonymous_m

jonesMUFCforever wrote: »

It looks like your credit rating is worse than when you took out the loan (only you can say if this right) and this is why no new offers of a loan are appearing now on your internet banking..

My credit rating seems better, before I could only have a £10 overdraft (which it still remains) and even Halifax wouldn't give a credit card but now I have a total of £10,600 available credit on credit cards but that might be because I have a Capital One card (at 30.34%) which is paid off in full each 56 days so I pay no interest and with the cash back offer they pay me :j

There wasn't an offer for a loan from Halifax for a loan, they always offer savings accounts, ISAs and home insurance

Anonymous_m

Dogger69 wrote: »

What does your agreement say about early repayment?

It says I can pay it early but I need to pay 2 months interest. I don't mind paying the extra but no one is telling me the sort code and account number to send the money for full or extra payment.

Dogger69

Anonymous_m wrote: »

It says I can pay it early but I need to pay 2 months interest. I don't mind paying the extra but no one is telling me the sort code and account number to send the money for full or extra payment.

Contact the call centre, branches rarely deal with these things now. Ask 'I would like to repay my loan today, can you give me a final settlement figure please'.

If they give you this figure, then ask if you can make a payment over the phone, or for the relevant banking details.

If they cannot give you this figure, ask to speak to a manager.

If you do not allow this, ask them to log a complaint.

Make sure you don't get sidelined with other moans.

Anonymous_m

Dogger69 wrote: »

Contact the call centre, branches rarely deal with these things now. Ask 'I would like to repay my loan today, can you give me a final settlement figure please'.

If they give you this figure, then ask if you can make a payment over the phone, or for the relevant banking details.

If they cannot give you this figure, ask to speak to a manager.

If you do not allow this, ask them to log a complaint.

Make sure you don't get sidelined with other moans.

I have called them but they said the only amount shown is the amount borrowed plus interest if paid over the 7 years. When I requested to have the loan term reduced the person on the phone said if I go to the branch they have the same system and it's the same if I call them or if I go to a branch they have access to the same database

opinions4u

Anonymous_m wrote: »

I have called them but they said the only amount shown is the amount borrowed plus interest if paid over the 7 years. When I requested to have the loan term reduced the person on the phone said if I go to the branch they have the same system and it's the same if I call them or if I go to a branch they have access to the same database

I'm convinced you must be doing something to make this harder than it should be.