Lloyds TSB Loan Ripp OFF (Revised)

andywebster5

I have just taken a loan out with the my high street branch of LLoyds last week. I then phoned the customer Loan line to ask for a resettlement figure as I might be in a postion to pay a huge chunk of it off. They offered me a loan to pay the balance off which I was to pay an extra £300 on the loan and be £35 better off each month for the same loan period with the same insurance. How can this happen? They offer a policy to save the customer money but can charge different rates for the same product. The branch manager could not give an explaniton as to why this happend. Can anyone please tell me why?:mad: and how do I complain to get this rectified.

jay78

There is someone on this board who works for Lloyds TSB. He/she recommends paying the whole loan off minus one months direct debt. Apparently this will not incur penalty charges.

MarkyMarkD

I don't understand your original post, andy.

Starting irrelevant polls when you are asking a question doesn't help either.

Can you explain what the initial loan amount, over what period. How much you were originally repaying per month. How much you want to repay. How much the new loan amount and repayments are.

dawnylou

jay78 wrote: »

There is someone on this board who works for Lloyds TSB. He/she recommends paying the whole loan off minus one months direct debt. Apparently this will not incur penalty charges.

That is not necessarily correct! If all but one payment is made there is a possibility that an Early Settlement Fee could still be added to the final repayment.

andywebster5

Sorry for the confusion I posted this in a fit of rage. I borrowed £12500 over 60mnths at £397.40 with insurance. I then phoned the banks loan repayment centre after 5 days for a settlement figure as I might be in a postion to pay off some of the loan. Now bearing in mind I had visited my high street branch and was offered the loan after going through all there proceedures. I was offered another loan to pay off this one loan amounting to £12891.31 over the same period with the same insurance at a cost of £364.29 per mnth saving £33.11 x 60 =£1986.60. Now if the bank was right in saying they try to save you money then why are they offering the same loan, same terms but 2 different payment rates.There loan centre is part of the high street group unlike the internet. Why can they do that surely they have to give you the same rate as each other. Does anyone know the right channels to go down to get answers and results? or can they just get away with this.?:mad:

MarkyMarkD

There's no logic at all in taking another loan to repay the first loan, when the whole point is that you don't want the loan.

The fact that you can be offered different rates through different channels for the same loan is a fact of life and nothing to complain about.

jonesMUFCforever

Telephone banking, Internet banking and branch banking can all offer you different rates for the same amount over the same timescale.

All the different departments are in competition with one another -they all want your business.

If you go into a branch the branch manager will not have a clue what Internet or Phonebank will offer you.

shandypants5

just got off the phone to lloyds about this exact subject.
Why cant I ring up "MY BANK" ask to speak to a manager and then have him offer me "THE BANKS" best deal....?

Isnt that what banks used to be about..? offering good financial advice.

It seems to me that it is a lottery and it depends who you call at diff times of the day.

I have been offered the same loan from lloyds 3 times in a 24 hour period,
the apr rates (which I had to ask for as they were not offered till I did)
were 7.9% 8.2% and 13.9%....

in addition to this, I allready have a loan with them which I am paying 5.9% on..... they are going to charge me £53 pounds to settle early and then re-lend me the same money back plus the extra I need to borrow, at the higher rate....:mad:
BUT, I pointed out that one of the features of the loan is the ability to make bigger payments without incurring charges.....
why cant I just pay off 2 huge amounts to clear the loan???? thats not allowed they said.......that would be a settlement and would incurr charges..


Feeling pretty ripped off by lloyds at the moment and thinking of leaving them....

are other banks any better...

MABLE

dawnylou wrote: »

That is not necessarily correct! If all but one payment is made there is a possibility that an Early Settlement Fee could still be added to the final repayment.

Crap. It does work I have done it myself quite a few times. you are just creating a problem when you dont really know yourself.

MarkyMarkD

shandypants5 wrote: »

in addition to this, I allready have a loan with them which I am paying 5.9% on..... they are going to charge me £53 pounds to settle early and then re-lend me the same money back plus the extra I need to borrow, at the higher rate....:mad:
BUT, I pointed out that one of the features of the loan is the ability to make bigger payments without incurring charges.....
why cant I just pay off 2 huge amounts to clear the loan???? thats not allowed they said.......that would be a settlement and would incurr charges..


Feeling pretty ripped off by lloyds at the moment and thinking of leaving them....

are other banks any better...

Shandy

Pretty obviously (to me) you should keep your existing 5.9% Lloyds loan as that's a very good rate now that rates have increased, and get your new loan from a different lender. Best buy rates are just above 6% now.

Paying off an existing 5.9% loan at a penalty AND then a higher rate is madness.

shandypants5

yeah I know...but I really cant afford to raise my monthly payments...
and having TWO loans would do just that..
I just want to extend the loan length, but keep paying the same amount.

SO..I am between a rock and a hard place.. have to get rid of one payment before I take out another to replace it...

really feel bad about losing the 5.9%... but dont see any other way.