MSE News: Had a Barclays loan? You could be due share of £100m payout after blunder

Former_MSE_Helen

"Barclays personal loan customers could get a share of a £100m payout after the bank made mistakes on their paperwork..."

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Had a Barclays loan? You could be due share of £100m payout after blunder




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luckoftheirish1

I've just worked out I've been paying a ridiculous amount of interest! I took a loan out last year for £6000 over 5 years. My payments are £162 a month. I've just had a look at my online banking and only £900 has gone off my loan. 14 payments of £162 are £2268 - 900 means I've paid £1368 in interest already! That means only £64 of my monthly payment goes towards my loan and £98 is interest? I need to double check when I get home exactly what my interest rate was, but it definitely wasn't high!! I remember looking at my yearly statement thinking it seemed strange - now I know it's definitely not right! Cannot believe I've only just realised!

tinkerbell28

luckoftheirish1 wrote: »

I've just worked out I've been paying a ridiculous amount of interest! I took a loan out last year for £6000 over 5 years. My payments are £162 a month. I've just had a look at my online banking and only £900 has gone off my loan. 14 payments of £162 are £2268 - 900 means I've paid £1368 in interest already! That means only £64 of my monthly payment goes towards my loan and £98 is interest? I need to double check when I get home exactly what my interest rate was, but it definitely wasn't high!! I remember looking at my yearly statement thinking it seemed strange - now I know it's definitely not right! Cannot believe I've only just realised!

That would make it about 22% :eek:

What actually have they done? Does this apply only to those who were in arrears?

Can't say I'm surprised, we had 10k short term from them, 2010-11 then paid the whole lot off. I remember thinking they made a huge !!!! up with the settlement figure and how much interest that we'd paid. OH would not have it though, they knew best :cool:

As the article mentions it is linked with arrears notices and statements. I wondering if it applies to well managed accounts too, if it does, happy days.

Apples2

luckoftheirish1 wrote: »

I've just worked out I've been paying a ridiculous amount of interest! I took a loan out last year for £6000 over 5 years. My payments are £162 a month. I've just had a look at my online banking and only £900 has gone off my loan. 14 payments of £162 are £2268 - 900 means I've paid £1368 in interest already! That means only £64 of my monthly payment goes towards my loan and £98 is interest? I need to double check when I get home exactly what my interest rate was, but it definitely wasn't high!! I remember looking at my yearly statement thinking it seemed strange - now I know it's definitely not right! Cannot believe I've only just realised!

All seems correct to me, you agreed to a loan of about 21%.
£6k over 5 years is not a "normal" loan, sounds like there must have been some desperation at the time of applying.

Put your figures of £6k, 60 months and 21% apr in here to see a breakdown of payments
http://www.theguardian.com/money/loan-repayment-calculator-interest-rates

tinkerbell28

Apples2 wrote: »

All seems correct to me, you agreed to a loan of about 21%.
£6k over 5 years is not a "normal" loan, sounds like there must have been some desperation at the time of applying.

Put your figures of £6k, 60 months and 21% apr in here to see a breakdown of payments
http://www.theguardian.com/money/loan-repayment-calculator-interest-rates

Yeah that's what I worked it out at. Small amounts over long period of time always = majorly high interest.

VT82

Apples2 wrote: »

£6k over 5 years is not a "normal" loan, sounds like there must have been some desperation at the time of applying.

Come again??

luckoftheirish1

Jeez!! Maybe it is right then. Didn't think they took that much in interest though! Will never be silly enough to get another loan!!

snortbrick

Wonder if this also affects Barclaycard/ credit card?

timmh

Or even the Egg Credit Cards?

tinkerbell28

snortbrick wrote: »

Wonder if this also affects Barclaycard/ credit card?

They are looking at barclaycards.

JimmyTheWig

Apples2 wrote: »

All seems correct to me, you agreed to a loan of about 21%.
£6k over 5 years is not a "normal" loan, sounds like there must have been some desperation at the time of applying.

Santander, for example, would loan this amount for this term. 6.8%. Don't know what isn't "normal" about it.
http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&canal=CABBEYCOM&cid=1237918154384&empr=Abbeycom&launch=NO&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_ViewSelector