Lloyds TSB Loan Ripp OFF (Revised)

Lizzy

andywebster5 wrote: »

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.

If you have only taken out the loan last week, I'm sure you have 30 days to change your mind and return the full amount with no charge. I used to work for a loan company and that was their rule.
You could then take a lesser amount that you want from else where and completely start again. Have a read of the terms and conditions.....and get to the nitty gritty.

shandypants5

towseriv wrote: »

Also Lloyds are not 'pants' they are just as good as any other supplier of loans.

Thats your opinion, heres mine.
I think lloyds are "pants" for tring to relend me the same money back at a higher interest rate AND charging me for the privelige.
Surely they would be making enough out of me just from the massive apr hike they tried to get me to take.

I had a long chat with their one of thier managers on the phone and it seems to me that lloyds will give you a deal that their computer calculates for them...
and it seems to me that the calculation is based on what they can get away with charging...
if they think you can afford it they offer you higher aprs....
they offederd me 3 loans at 3 different rates... all within 24 hours.
and on the same day offered my wife the same loan at a lower rate....
SO, how come someone on a lower income gets a lower apr????

It smacks of the banks taking as much as they think they can get away with.....:mad:

towseriv

Or does it smack of a bank lending money based on risk just like everyone else? Your income for the basis as the APR is irrelevant as this is based on your previous credit history and such like so if your wife has less dets than you or a better re-payment history then this will generate a lower APR for her.

As for hiking up the interest rate and charging you the interest is higher as your risk is higher. In a way you have proved this by saying you cant afford to run two loans so as such the same also the interest is always higher when re-borrowing the same money. Is the APR not lower is you were to borrow the new money alone? Not that you can do that I know.

shandypants5

surely the Bank has a duty to "look after" its customers..
OK I understand that the apr may be affected by risk... and different people get different rates.
But Lloyds offerd ME 3 different rates within hours.... so did my risk level change.? no I dont think it did.

What happened is I spoke to different sections of the lloyds group, and got different deals because they are in competition with each other.

My argument is that it is extremely difficult for me as a customer, to know whether I am getting the best deal from my bank.
If I bank with Lloyds then I feel they have a duty to treat me as a customer and research ALL the deals their "group" offers and present them to me in a way that is clear and understandable.
Surely that is why we use banks... because they provide a service.

If the branch I call thinks another department could offer me a better deal then they should advise me to take that route, after all I would still be borrowing from Loyds so Loyds still make money from me.

BUT NO... what happens is whoever you call says that THEIRS IS the best offer and tries to get you to take the loan out with them. even though another department could offer me a better deal.

So will someone please explain how Lloyds are looking after me "the customer"... as I seem to be missing the point....

andywebster5

That is my point exactly. The loan customer service centre is linked to the branch side of the bank, but the internet is not. So i understand that it is split between different parts but this is the same side of the high street.The branch manager did inform me that the loan centre should not be competing with the high street side as per a memo he recieved not so long ago. So is there mispractice going on in lloyds itself?

shandypants5

sorry Andy I seem to have unintentionally hijacked your post.:rolleyes:

But I am seething mad at the total lack of concern that lloyds seem to have for their customers, and their financial well being.
A Bank is not a shop.... they shouldnt be out to make as much profit as possible from the customers.
They should offer a service, and make a reasonable profit honestly and openly.

jamesd

They are looking after you in exactly the manner that you should expect from banks these days: as a cash cow to milk.

The different divisions of the bank have different competitors and costs and that's reflected in the rates they offer. It's not solely due to your credit history.

Bank employees should note that my concise description of bank sales objectives isn't intended to comment negatively on you.

shandypants5

Oh well in that case....

MOOOOOOOOO!!!

towseriv

Different overheads etc will dictate different rates. This is how the internet can beat prices in shops etc is it not? On the phone you are basically doing the same as on the internet as all they do on the ohoine is take your details, enter them into the system and let the system decide if you can afford it or not based on the information you gave them. In branch you sit with an advisor who can help you work out how much you can actually afford compared to hat you think. Take into account all your overheads instead of those you think are relevant to mention. I have dealt with several customer who have been told no over the net or telephony only for us to realise that the situation is not standard for example and once this has been taken into account they can have a loan.

if your argument is that a bank loan should cost the same on the net then in branch then get on the back of the shops that cuts thier prices online too because in your eyes they are ripping you off also.

As for not competing between the depts then again it all depends on if you need the money when you talk to someone or if you can wait a week to get your money.

MarkyMarkD

The part of LTSB's behaviour here which I believe is pants is levying an early settlement penalty on a customer who isn't settling, but contra-ing the existing loan against a new loan.

I agree with everything else that towseriv says.

Differential channel pricing is fine.

Charging by risk is fine.

Charging customers any rate which they are willing to pay is fine.