Wrong %APR - dispute with Bank

Robert_Sterling_3

I am surprised to hear they will be chaging so soon as the consultation process is open until 26 Oct 04 as far as I know,

condyk

Yes, there is something potentially dodgy about this whole typical APR thing. Who's typical. I think I probably am but ...

I have a loan with Cahoot, a great flexible loan that I was happily paying off, some months by 1000 +, others by minimum amount. Very happy and decreasing nicely. Then all these interest rate rises start. Fine, I chose a flexible rate so o worries.

Then I see Alliance and Leicest offering 5.8% typical. Ok, I'm pretty typical: well paid, own home, good equity, no dodgyness or massive debts, perfect record of payments, etc.

Applied for enough to clear Cahoot (now @ 8.5%) and so I reckon 3% beter off is cool! Get letter saying no problem with loan, just do this paperwork, get ID copied then checked and signed, etc.

So, lots of hassle finding someone on their list who is 'appropriate' to sign, drive 22 miles to get it done, post it all off and then get another note sent saying yes, we'll pay soon and you just need to sign agreement.

Arrives ... and after all this they offer me 10.9% WHY?

And, what is really irritating, I went to the trouble of sorting all the paperwork and turned down a Capital One loan at confirmed 6.5%. Why couldn't they just say at outset they would offer 10.9% and save all the hassle.

The woman on the phone spoke as if this was the 500th time today she'd explained 5.8% is typical rate, blah, blah, so tough ti**ie. I ask why am I not typical and they don't tell you.

Anyway, rant over ... and I probably have a credit search on my record now too!!!!! I think they suck ...

robnye

i had a similar situation earlier this year with Northern Rock.

I already had an existing loan with them, and wanted to buy a new used car.

so i contacted them about a pay off figure and was asked whether i would be interested in a new loan, that paid of the old one and gave me enough money to buy the car.... 6.9%

I said ok, went through the application over the phone.

when asked did I want their payment protection insurance , I said 'No', asked why , I replied you are too expensive.
then got told the rigmoral of having to be read the T&C's including insurance protection.. even though i said i didnt want it.

they then said, please wait why the system does its calculation...... we can offer you that loan for 7.9%..... what happened to the 6.9% on offer. OH dont worry you have a very good credit rating..... If i do , why wont you give me the 6.9%

their reply.... sorry that is what the system is offering.
So i said, please send me a pay off figure in the post and put the phone down.

I subsequently borrowed the money from my mortgage company (yes i know, i didnt need to do it as a secured loan), they gave me 4.79%, over 20 years, but as I can afford to pay extra to make the payments up to £200 per month (the northern rock loan would have been £198), we will pay of the loan in 5 years and 4 months, ok 4 months longer then NR, but even with rate rises, it is still 2.5% lower than NR
I also have the flexibility to draw off, the amount I have paid in advance at any time