Mis-sold consolidation loan: can I get my money back?

doglegs

Hi,

My first post here. Just wondering if anyone knows whether it is possible to get back at my bank for giving me bad financial advice. About 3-5 years ago i went to my branch of Lloyds and they sat me down and told me I should consolidate all my debts. They lumped together a £50 a month interest free debt, my £20 a month low interest student loan, my £1500 low interest overdraft, together with the one thing I was struggling with which was a £2000 credit card bill at 18% APR. They gave me a loan of about £6000 plus a couple of £1000 insurance on the top at about 15-18% APR to pay all of these off. At the time I was clearly naiive. Now looking back at it I realise how they've ripped me off. Clearly to me this was terrible advice given by them. I've since paid off this loan with a lower APR loan from Northern Rock but I'm not much better off cause although my credit rating is perfect I never got the typical APR from Northern Rock.

As far as I can guess Lloyds were legally obliged to give me good financial advice. So is there anyway I can get this money back?

All help will be gratefully received.

Emmzi

If you were of legal age and sound mind, and no one stood with a gun to your head when you entered into the contract - no. Best to put it to one side, stop being angry, and move on.

Butlers1982

As far as I can guess Lloyds were legally obliged to give me good financial advice

and your also clutching at straws!
at the end of the day you have been of sound legal age and mind so there is nothing you can do.

At the time I was clearly naiive.

Hindsight is a wonderful thing, but it doesnt mean you should be able to claim back what ever you look back on now and see as correct.
Learn from it and realise that you should always shop around before doing anything and to get "independent" advice before you complete anything on a financial basis.

doglegs

But were they not legally obliged to say " We don't recommend that you do this?"

What about the FSA?

jonesMUFCforever

What about the FSA?
All the bank did was offer you an option to consolidate. You are articulate here and can state your case so why sign up for something that you think is now a rip off.
I also have to say your first posting about low interest this and that to be extremely vague and sorry to say a little bit unbelievable.

doglegs

ejones999 wrote: »

What about the FSA?
All the bank did was offer you an option to consolidate. You are articulate here and can state your case so why sign up for something that you think is now a rip off.
I also have to say your first posting about low interest this and that to be extremely vague and sorry to say a little bit unbelievable.

Not sure what you mean by unbelievable. I find that a little bit offensive. It's not really vague. It's certainly not unbelievable. Why be unpleasant to someone who is looking for advice?

jonesMUFCforever

About 3-5 years ago ...........was it 3 or was it 5?

£20 a month ' low interest' loan' - what was this exactly as banks offers overdrafts to students not loans. Student loans Co. do loans

My low interest overdraft - was this at nil or at another figure?

They gave me a loan of about £6000 at a rate of about 15 to 18% -
Loans would have a fixed rate so what was yours exactly?

The above points to me are VAGUE in the extreme and if you were to write to the bank in that matter your letter would end up in the bin.

You claim you were ripped off - why?
Did they have the knucle dusters on? Did they lock the door and say you couldn't leave until you sign??

Of course not - you signed the agreement.

As for ''I've since paid off this loan with a lower APR loan from Northern Rock but I'm not much better off cause although my credit rating is perfect I never got the typical APR from Northern Rock.'' - I really don't know what you are on about to be honest.
You say that you have a perfect credit rating (says who?) but obviously LTSB and Northern Rock disagree.

Care to try anyone else?

doglegs

A bit harsh there really.

Anyway, I went on this forum because someone told me that Martin Lewis had been talking about missold loans. I couldn't find anything in the main site so I thought I would try the forums.

If you felt the information was a bit vague then perhaps you could have asked me for more information instead of assuming a very unpleasant tone. I can't help thinking that you work for one of these banks and are trying to intimidate me.

Are the banks not legally required to give good legal advice? If someone can tell me politely and authoritatively that they are not then I will happily walk away.

darich

Banks can only offer advice on their own products.
In the same vein, TSB offering a loan at, say 10%, are only going to advise on that particular loan and not say "oh by the way, if you car to visit our competitor down the street, you'll get a loan for 8%"

To be honest, it seems that TSB offered you a loan and you've accepted it without shopping around for a comparison.
Peronally i doubt a personal loan would have rates as high as "15-18%" as you've claimed - unless you have a really poor credit rating.

From what you say, TSB offered you advice on their loan and you signed for it without checking to see if you could get it cheaper. Galling though it is, i think you're only solution is to accept it and learn for the next time you need a loan.

EDIT: Been thinking - you weren't mis-sold anything. TSB offered you a consolidation loan and it was used for exactly that - consolidation. Whether it was a competitive rate of interest is another topic altogether but any complaint to the TSB will be rebuffed and since they clearly stated their interest rate before you signed, they'll probably ask, "what is your complaint?"

petermb_2

Going back to your original question, the chances are that you were ripped off. Ignoring the fact of whether you were naive or of age or any other issue the lender has a duty under various laws to get the thing right.

If they did not get it right and there are lots of issues that give them the opportunity to get things wrong, you have the opportunity to seek redress. PM me for details of how you can take this particular lender on.

regards

Peter

regularsaver1

Advice is not given by a bank adviser, unless they are authorised by the FSA to do so in mortgages, financial advising or insurance

Loans would be an option, It would be more an informed choice and they can only talk about their own banks products

All the rates would have been in the loan agreement that you signed?