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

doglegs

Thanks very much for the last few posters whose advice has been friendly and informative.

Thanks again.

Debt_Free_Chick

I think you have two difficulties in making a claim.

Firstly, you would need evidence that they recommended the loan to you - if they just offered it as an option, then this is not a recommendation and it would have been down to you to take it or leave it. Do you have anything recommending the loan as the best for you?

Secondly, in order to claim compensation, you would need to demonstrate actual financial loss i.e. you would need to show how much extra you paid out on this loan, compared with what you would have paid out had you kept the original loans.

You may well have been ripped off, but it's difficult to know without seeing all the figures. Perhaps you were ... perhaps you weren't?

But to claim compensation, you need to prove you were

darich

i don't believe any claim can be made.
Just because the product purchased wasn't the cheapest doesn't make it a rip off. It also doesn't mean it was mis-sold. If you wanted a consolidation loan and they gave you one, then it meets the requirements of the customer, is fit for purpose and is therefore, not mis-sold.
Whether it is the cheapest, is another debate entirely.
If another cheaper option is found after a few years, it doesn't automatically mean the original one was mis-sold.

All it means that some shopping around was necessary before committing to a product.

I have to say though, that claiming you were mis-sold a loan and trying to claim compensation after "3-5 years" and after paying it off in full is bordering on the ridiculous.

darich

i don't believe any claim can be made.
Just because the product purchased wasn't the cheapest doesn't make it a rip off. It also doesn't mean it was mis-sold. If you wanted a consolidation loan and they gave you one, then it meets the requirements of the customer, is fit for purpose and is therefore, not mis-sold.
Whether it is the cheapest, is another debate entirely.
If another cheaper option is found after a few years, it doesn't automatically mean the original one was mis-sold.

All it means that some shopping around was necessary before committing to a product.

I have to say though, that claiming you were mis-sold a loan and trying to claim compensation after "3-5 years" and after paying it off in full, is bordering on the ridiculous.

mrmajika

petermb wrote: »

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.

This post, taken along with the signature, stikes me as a sales pitch.

doglegs

Can I just point out that I didn't go to Lloyds TSB looking for a consolidation loan. What I did do was go to see an adviser there about the trouble I was having with a £2000 credit card bill.

I intend to dig out the bits of paper showing all the interest rates but off the top of my head they presented an option for a loan of £6000 at at least 15% APR ( I can go and find out when I have some time) plus the loan insurance of around £1500-2000. I know it was at least 15% APR because I went in this year to see if there were any options and they did suggest a lower APR loan of around 14% which I rejected.

I didn't really know anything about loans and APR at the time but I trusted that they did since they were a large bank and seemed to have treated me well for the previous years.

In terms of the comments about credit record Lloyds have a 9 or 10 point system and i have remained for most of my time there in the top 1 or 2 positions. I have barely missed a monthly credit card payment in 5 years (twice I think), I don't miss any bill payments of any kind and still find it odd that Northern Rock wouldn't offer me the typical APR. Most of their questions in the NR loan consultation interview were about overtime, they asked me remarkably few questions about anything I would have expected. I can't work overtime so I guess this is why they offered me a rate of 8.9%. I'm also young with no mortgage and no kids so I guess this may have made a difference.