Lloyds lone rip off, do we have a case?

sazandpaul

Hi,

we are looking for a bit of information because we think we have been right royally ripped off by Lloyds. In 2001 my husband took out 2 personal loans. They were for £1000 and £1500 (for home inprovements).

In 2002 we briefly split up. My husband phoned the bank and asked for a refinance loan to help pay off both loans as he was struggling to pay both loans off.

Since then my husband has been paying off £50 per month which he was told was interest free. With all the previous interest it was accumulated to £4100. We have later discovered that we have been paying interest on each repayment.

We are still to this day paying off the loan. My husband tried to get a settlement figure and to raise the payment figure as our circumstances have changed and we are able to pay much more. He was told in on a few occasions that this wasn't possible and we had to carry on paying the current payments,

My husband never missed a payment of the loan, but missed a few refinance payments in round about 2002.

There have been no missed payments for 72 months now and we have ended up paying around £11000 in total for a £2500 loan.

After many unhelpful phonecalls we have now gone with a finance company to get rid of the loan as our credit rating is zilch because of this loan.

We contacted the bank to tell them and was told that we have been badly advised for years.

We have put in a complaint but is there anything else we can do? Any help would be greatly appreciated.

xx

vassa

sazandpaul wrote: »

Hi,

we are looking for a bit of information because we think we have been right royally ripped off by Lloyds. In 2001 my husband took out 2 personal loans. They were for £1000 and £1500 (for home inprovements).

In 2002 we briefly split up. My husband phoned the bank and asked for a refinance loan to help pay off both loans as he was struggling to pay both loans off.

Since then my husband has been paying off £50 per month which he was told was interest free. With all the previous interest it was accumulated to £4100. We have later discovered that we have been paying interest on each repayment.

We are still to this day paying off the loan. My husband tried to get a settlement figure and to raise the payment figure as our circumstances have changed and we are able to pay much more. He was told in on a few occasions that this wasn't possible and we had to carry on paying the current payments,

My husband never missed a payment of the loan, but missed a few refinance payments in round about 2002.

There have been no missed payments for 72 months now and we have ended up paying around £11000 in total for a £2500 loan.

After many unhelpful phonecalls we have now gone with a finance company to get rid of the loan as our credit rating is zilch because of this loan.

We contacted the bank to tell them and was told that we have been badly advised for years.

We have put in a complaint but is there anything else we can do? Any help would be greatly appreciated.

xx

You've gotten out more finance?

In future, write to them, say your circumstances have changed and you can only make X payment per month. Make this figure something really low. Save up like mad whilst paying this off. Then when you have the money saved, ring and ask for a settlement figure. Job done.

Moral of the story, only spend what you have. Credit is bad.

DevCoder

If you have put in a complaint then no.

I assume you have it in writing all the pertinent points you mention (ie the interest free £50 payments, the lack of settlement figure (which is bizarre and if you request one they should put the figure in writing)) ?

You refinanced on the original £2500 loan so you cant use that as part of the equation, what was the new refinancing amount/apr/period?

DevCoder

vassa wrote: »

You've gotten out more finance?

In future, write to them, say your circumstances have changed and you can only make X payment per month. Make this figure something really low. Save up like mad whilst paying this off. Then when you have the money saved, ring and ask for a settlement figure. Job done.

Moral of the story, only spend what you have. Credit is bad.

Make the figure reasonable according to your incoming and outgoings , not necessarily "really low".

vassa

krisdorey wrote: »

Make the figure reasonable according to your incoming and outgoings , not necessarily "really low".

Well whatever suits, but the general premise is if they won't allow you to overpay, come to some arrangement where you can save up and then bang the whole lot off in one go.

John1993_2

sazandpaul wrote: »

There have been no missed payments for 72 months now and we have ended up paying around £11000 in total for a £2500 loan.

This is the nature of a very long loan, you can end up paying back multiples of the amount which was advanced, as in the early years your payments are mainly paying interest.

It's not clear what you mean by the £50 payments being interest free; you aren't charged interest on payments, you are charged money on outstanding balance. If your husband asked if he was being charged interest on the payments then the answer absolutely was right, that he was not.

gazman100

No offence, but are you supplying all the information here?

What was the interest on a £50 a month loan that meant that a £2500 debt was increasing? What were the original payments?

And if you paid £50 a month since 2002 how is that £11000?? Closer to £6600 not including the original loan payments surely?

RichardD1970

dustingemma wrote: »

You're good, congrats.

Only 2 more to find!

sazandpaul
x

So you say, but why not post as sazandpaul, just to prove it?

John1993_2

dustingemma wrote: »

You're good, congrats.

Only 2 more to find!

sazandpaul
x

.???

What does this mean?

RichardD1970

dustingemma is an alias of a known troll, who is claiming this is one of their wind up posts with a new alias.

sazandpaul

Will get him to reply properly tomorrow with all the facts. Going with more finance might not have been the best move but it's our only debt and in 10 months we should be clear and can start building up again