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Loan interest rates miscalculated 5 years ago
Hi all,
I'm a newbie to the forum and hope that someone may have some advice to offer on a difficult issue.
Our bank recently informed us that we were in arrears over£2000 for a bank loan. We have never missed payments and on discussing this we were informed that the interest rate had been miscalculated over 5 years ago. The rate was set at 1% instead of 7%. They have agreed to waive the arrears but are increasing our monthly repayments by £70. This is not something we have accounted for and will push us into hardship. The bank have offered us advice on how to manage our money in order to meet repayments.
Has anyone else had similar experiences or would anyone know whether this is in breach of the original agreement?
Many thanks.
I'm a newbie to the forum and hope that someone may have some advice to offer on a difficult issue.
Our bank recently informed us that we were in arrears over£2000 for a bank loan. We have never missed payments and on discussing this we were informed that the interest rate had been miscalculated over 5 years ago. The rate was set at 1% instead of 7%. They have agreed to waive the arrears but are increasing our monthly repayments by £70. This is not something we have accounted for and will push us into hardship. The bank have offered us advice on how to manage our money in order to meet repayments.
Has anyone else had similar experiences or would anyone know whether this is in breach of the original agreement?
Many thanks.
0
Comments
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Sounds very unusual. Have you got the original paperwork? (If not, don't worry, ask the bank to provide you with a copy they will have it on file)
If so the paperwork should display the interest rate AND the monthly payments. If this is the same as what you have been paying then you may have a claim.
You may decide to raise a complaint contending that you have been sticking to a budget and increasing payments would place you in hardship if this is the case, however you will end up paying it off for longer?Thanks to all who post here:beer:0 -
Many thanks for your response and your advice.
I'll start searching for original paperwork.
Kindest regards0 -
Given they are waiving the arrears seems a generous offer. So you've little grounds for complaint if the ongoing charges are revised to the correct amount.0
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Name and shame the bank.0
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PeacefulWaters wrote: »Name and shame the bank.
Shame them for accidentally taking too little off the customers, and deciding not to ask for the difference back?
How is that shameful?0 -
Getting the basics of your business correct isn't too much to ask is it?Shame them for accidentally taking too little off the customers, and deciding not to ask for the difference back?
How is that shameful?
The financial difficulties that the increased payment will cause would probably have happened sooner without the error though.0
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