Lloyds TSB Loan Ripp OFF (Revised)

towseriv

Some people just seem to think banks owe them something. They would soon be complaining if you could get a loan over the phone and were 'forced to go inot a branch'

As for the settlement fee it is pants yes and there are still ways around it but if it was common place the person doing it in branch could get into trouble.

mrmajika

jay78 wrote: »

Here's where I got my info:
http://forums.moneysavingexpert.com/showthread.html?p=5840654#post5840654

I can assure you that the process I describe does work.

This way of settling loans is not proactively promoted for obvious reasons.

Sadly, this will not help the OP as (s)he is looking to refinance a loan which means settling the existing loan (complete with Early Settlement Fee) and taking out a new loan for the full settlement plus new funds required.


With respect to rates, branch rates and telephone rates should be the same. Internet rates, as a general rule, are cheaper than branch / telephone. The OP may have had a retentions or price match offer which would have resulted in the different rates.

Very_Poor

towseriv wrote: »

It is niot a fault and it has not been fixed.

Yes you have to make sure it's a fixed interest rate.

shandypants5

towseriv wrote: »

Some people just seem to think banks owe them something. They would soon be complaining if you could get a loan over the phone and were 'forced to go inot a branch'

As for the settlement fee it is pants yes and there are still ways around it but if it was common place the person doing it in branch could get into trouble.

OK,OK I allmost agree with you now...I think.....
I see what your saying.... if All channels had to be the same ,then I would end up paying the higher rate by default....

I was..am still.. a little bit annoyed .

The bank could easily not charge me an early settlement if they wanted,they just dont "want" to and they know I HAVE to pay it...
And
If I hadnt been a little savy and actively searched for a good rate, then the bank (not just lloyds I admit) would have happily let me lend the money at 13.9%...

This is the behaviour that bothered me... because it is the sort of thing that gets less savy people into spiraling dept...

I have this old fashioned notion that the bank should be the people you trust most, and you only use credit cards/ loan sharks/fast cash companies, as a last resort....

but it seems times have changed.....

dawnylou

Sorry repeat post.

I do apologise.

towseriv

dawnylou wrote: »

As far as early settling goes - I have never had a loan with LTSB so I don't know if it would work or not - but I know someone got into trouble for telling a customer how to avoid the charge as he still had a charge applied and of course then we had a complaint on our hands!

I know it sucks to have to pay that bit extra...At the end of the day if people are looking to settle early then there is usually a fee to pay - and all customers agree to this having read and signed their T&Cs...

Telephone rates are also different to those given in branch.
All 3 channels offer different rates.
Sometimes mailings are also sent out with special offers on them and those rates are only available if you apply via the telephone so if you go into a branch you will get a higher APR than you have been advertised on your mailing.
But even without mailings the rate over the telephone can often be lower than in branch, whereas the internet can be lower still.

Didn't I say all this??

towseriv

Very_Poor wrote: »

Yes you have to make sure it's a fixed interest rate.

What?? Think you need to read the whole post I am talking about a fault not fixed not an interest rate.

towseriv

shandypants5 wrote: »

OK,OK I allmost agree with you now...I think.....
I see what your saying.... if All channels had to be the same ,then I would end up paying the higher rate by default....

I was..am still.. a little bit annoyed .

The bank could easily not charge me an early settlement if they wanted,they just dont "want" to and they know I HAVE to pay it...
And
If I hadnt been a little savy and actively searched for a good rate, then the bank (not just lloyds I admit) would have happily let me lend the money at 13.9%...

This is the behaviour that bothered me... because it is the sort of thing that gets less savy people into spiraling dept...

I have this old fashioned notion that the bank should be the people you trust most, and you only use credit cards/ loan sharks/fast cash companies, as a last resort....

but it seems times have changed.....

I partly agree with you but there are alot less freindly or helpfull lenders out there. You would be surprised the number of people that have high finance because they think they have bad credit but don't at all. They get sucked in by some sub-prime lender giving them th impression no-one else will lend. Or just the fear of asking. Also if you feel you have a good relationship with your PBM then ask for thier advice and see if you agree is all you can do.