nationwide loan mess up!!! help.....

tillydew

Hey all, i made a HUUUUGGGE mistake on tuesday 1st April!
i went to my local bank (nationwide) where i have my bank account, my credit card and my loan....
the loan was taken out some time ago at a really good rate - 14% apr, i was happy with this rate and i only had 13months left to pay it off.
However recently I came into issues and needed to get cash together to fix my van, so i popped into my bank, now this is where it get complicated. I know the chap who dealt with me (i cut his hair) I requested a top up on my loan, he asked what for, I told him, he then asked how much, £2000 was my reply.....yup no problem, he replied, but your repayments and time will shift, fine, i reply.....now at this point, interest rates were NOT mentioned....
No mention of the new loan would supersede the old loan....so i signed his document...but i did not sign my contract....
Later i looked at my contract and realised the loan was now for £4763, not £2000 and the return rate was 24.3%APR.....
HELP....How do i get out of this....i didn't agree to this???

Pixie5740

The £4763 will include the settlement figure from the previous loan plus the £2000 top up.

How long ago did you sign this new loan agreement?

AndyBSG

There is a cooling off period on any loan, which I think is 14 or 28 days after the contract was signed.

If you're still within this period then you can cancel.

Are you certain the first document was not the contract?

Clive_Woody

As stated I suspect the unsigned document was just the copy you were given for your records. The one you signed was the binding document.

Check the document for a cooling off period, normally there should be one but you will need to act quickly.

poppasmurf_bewdley

tillydew wrote: »

Hey all, i made a HUUUUGGGE mistake on tuesday 1st April!
i went to my local bank (nationwide) where i have my bank account, my credit card and my loan....
the loan was taken out some time ago at a really good rate - 14% apr, i was happy with this rate and i only had 13months left to pay it off.
However recently I came into issues and needed to get cash together to fix my van, so i popped into my bank, now this is where it get complicated. I know the chap who dealt with me (i cut his hair) I requested a top up on my loan, he asked what for, I told him, he then asked how much, £2000 was my reply.....yup no problem, he replied, but your repayments and time will shift, fine, i reply.....now at this point, interest rates were NOT mentioned....
No mention of the new loan would supersede the old loan....so i signed his document...but i did not sign my contract....
Later i looked at my contract and realised the loan was now for £4763, not £2000 and the return rate was 24.3%APR.....
HELP....How do i get out of this....i didn't agree to this???

What interest rate and what totals were mentioned in 'his' document, which you signed? Did you look at this document at all, or did you trust this man implicitly because you cut his hair?

tillydew

i did this tuesday 1st, been calling the bank today and they seem to want to delay things....thats cause i only have 5 days left for my cooling off period!!!!
arghhhhhh

Tixy

If you want to cancel the new loan agreement then write to them dated today and state that you wish to cancel it. Then they cannot delay things.

However, because this new loan settled your old loan there is a chance they will not reinstate your old loan agreement. In which case it is possible that the remainder of your old loan will become payable immediately.

It may be worth clarifying with them that your old loan can go back to the original terms, or worth seeing if you can borrow the funds from another bank at a better interest rate than your own bank is offering before you decide to cancel.

tillydew

Thank you Tixy, just got a call from nationwide local branch and nationwide loans head office, they both said the same....i would need to pay the whole lot of in full to cancel the loan....arghhh....i'm such a numpty....so now the search for a 5k loan with a lower rate than my current one....wish me luck.....

Thank you all soooo much for your help

CHR15

You can vent your frustration by carving an appropriate slogan into the back of his head next time he needs a haircut.