Procedures that should be followed by a loan representative.

4thstar

Hello all.
We are currently disputing the way in which a loan was sold to us, we were advised that some things were not right in our situation, we are now led to believe that we can fight our case, its been suggested that if the representative followed guidelines we would not have been accepted in the first place.

How can I find out what the guidelines are for someone selling us a loan?
I wanted to make sure of a few facts before I reply to the lender explaining how and why we think we were mis-sold the loan.

A few things I now believe to be strange are…

1.i work full time, I am the only earner in our family, the original loan was applied for by me, I was turned down.
2.the representative via email suggested we try my wifes name, my wife hasn’t worked for several years and only receives benefits due to our two young children (she is a housewife).

the rep replied via email saying….

“The 12 month deffered loan has been accepted in your wife’s name. Don’t ask--you know what banks are like.”

3.he then came again and had a form that was already filled in and my wife was asked to sign.

At no time did he explain in detail the situations regarding the loan, procedures or consequences.

4.he then told us that the deferred loan would be at 29% so what we should do is nearer the time take out a loan with Sainsbury or tescos at a lower interest rate and pay the loan company off.

We were under the impression that we could pull out any time within the deferred period and tried to do so 3 months before the payments date as our financial circumstances had changed, we were also told that if we now tried and succeeded in obtaining a new replacement loan to escape the 29% and then had trouble we could be up for fraud by obtaining a new loan we may not be able to pay.

We had it seemed little choice but to let things roll and see what happened.

In 6 months our loan has gone from £4300 to £9700

The rep has gone away with a large cut of our loan via commission for selling his companies product.
I did offer the company in question a fee to let us out of the contract, they declined saying it wasn’t their problem.

QUESTION:
So if I wanted to read the procedures and guidelines on how and what a loan sales rep should do when selling me a loan where would I look?

Kind Regards
Carl

jonesMUFCforever

There is no hard and fast rulebook.
Each company will have its own procedures.

Can I just add loans are not sold but bought (unless you were cold called by someone?)

Who made the first enquiries about the loan?

Sorry you may well have made a big mistake by taking out this loan but I do not believe that it was missold to you.

Butlers1982

Although they should adhere to Treating Customers Fairly.
If you feel what they have done is wrong then you should first right to the company in questions complaints dept and then see what they say.
If their answer isnt satisfactory, then you can go to the FSA.