ARGHHHH!! FD Loan interest refund saga

cinderella345

Hi

BELOW IS MY ORGINAL POST FROM A COUPLE OF WEEKS AGO:

UPDATE:

I have spoken to someone at FD and although someone else STILL needs to call me back what they are saying now is that the refund of £510 is calculated from July 15 to date. Because the mistake only effects our last annual statement. I have questioned this as the revised annual statements they sent me ran from Aug 2011 to Aug 2014 (not to 2016) and their letter says "we have enclosed revised versions of all the annual statements we sent you up until we rectified the mistake' which would imply to me that the mistake was rectified before Aug 14.

The letter goes on to say "we will refund you all of the interest you were charged from the date of your first incorrect annual statement to the date you receive your new statements" - which was sept 16.

I really don't understand and to be honest neither did they guy who called me. He needs to speak to HSBC who sent out the letters.

Does anyone have any clue about the dates that the mistake on the annual statements was rectified and the dates the interest refund covers?

Thanks
Helen





Hoping someone might be able to help. Basically we have a loan with FD that is nearly paid off (11 months to go).

We took it out in Aug 2010 for £16,200 at 9.9% over 84 months.

We had a letter 2 weeks ago saying they sent incorrect annual statements from Aug 11 to August 14 - of which they supplied revised ones.

The letter also said they would refund all the interest we were charged between the date of the first incorrect annual statement (aug 11) and the date we received the new statements (10th September 2016).

So by my workings we should be receiving over 5 years worth of interest.

However we received a further letter this weekend saying they were refunding £510 to us.

Am I missing something - how can 5 years of interest only equate to £510. The total interest on the loan is just over £6000.

Can someone help? I've tried calling FD but you can't speak to anyone about it just request a breakdown in writing.

Thanks
Helen

meer53

Why do you think you will get 5 years worth of interest back ? They will pay you the amount which you have been overcharged due to their error, not the full amount. It will probably be a few pounds for each month.

takman

Just accept the money and move you. You obviously didn't notice the mistake on the annual statements and even when your told about the mistake you can't even work out on how many statements it is!.
So this problem obviously never affected you in any way so just be happy that you got some interest back for doing nothing. At the end of the day you agreed to pay the full interest at the start of the loan.

tonycottee

All I can suggest OP is to contact FD again and speak to somebody else. I know there are a lot of people that were entitled to have their interest scrapped because their bank didn't follow the rules.
I'm really not sure that people telling you to let it go is good advice. I know if I could reclaim thousands from my bank, I certainly would.

If you don't get anywhere with FD, put in a complaint and then take it to the Ombudsman because it does seem that they are implying they shouldn't have charged you any interest.

Pixie5740

If you aren't able to speak with anyone at FD about this have you written to FD and requested a breakdown?

takman

tonycottee wrote: »

All I can suggest OP is to contact FD again and speak to somebody else. I know there are a lot of people that were entitled to have their interest scrapped because their bank didn't follow the rules.
I'm really not sure that people telling you to let it go is good advice. I know if I could reclaim thousands from my bank, I certainly would.

If you don't get anywhere with FD, put in a complaint and then take it to the Ombudsman because it does seem that they are implying they shouldn't have charged you any interest.

So you would try and claim back money and put in complaints when you don't even understand the problem?. The OP has stated they don't understand the problem and don't even know what statements it applies to yet you think they should make a complaint?.

Complaining about a problem that you have experienced and getting money back due to that is one thing. But to simply make a complaint because you see pounds signs and want to get as much money as possible about something you don't understand just makes you look stupid!.

meer53

tonycottee wrote: »

All I can suggest OP is to contact FD again and speak to somebody else. I know there are a lot of people that were entitled to have their interest scrapped because their bank didn't follow the rules.
I'm really not sure that people telling you to let it go is good advice. I know if I could reclaim thousands from my bank, I certainly would.

If you don't get anywhere with FD, put in a complaint and then take it to the Ombudsman because it does seem that they are implying they shouldn't have charged you any interest.

The bank have admitted they have made a mistake, they've refunded the OP the money they were overcharged, where do you get they shouldn't have been charged "any" interest from ?

There would be no case for the Ombudsman to investigate here.

tonycottee

meer53 wrote: »

The bank have admitted they have made a mistake, they've refunded the OP the money they were overcharged, where do you get they shouldn't have been charged "any" interest from ?

There would be no case for the Ombudsman to investigate here.

From the statement below

cinderella345 wrote: »

The letter also said they would refund all the interest we were charged between the date of the first incorrect annual statement (aug 11) and the date we received the new statements (10th September 2016).

So by my workings we should be receiving over 5 years worth of interest.

If a loan company fails to provide all the required information by law, then all charges and fees for that period are not enforceable. It wouldn't be the first time a bank has offered a token sum to avoid paying the full penalty.

meer53

tonycottee wrote: »

From the statement below



If a loan company fails to provide all the required information by law, then all charges and fees for that period are not enforceable. It wouldn't be the first time a bank has offered a token sum to avoid paying the full penalty.

It would be interesting to see the actual letter the OP received.

cinderella345

The original letter reads:

Dear Mrs xxx

Important information about your personal loan.

We recently reviewed our personal loan annual statements and found some covered the wrong period.
We’re really sorry for this mistake.

What happens next?

We’ve enclosed revised versions of all the annual statements we have sent you up until we rectified the mistake.
We’ll refund all the interest you were charged, from the date of your first incorrect statement to the day we expect
you to receive the one(s) enclosed, allowing for postage times.

We will write to you confirming the amount you will be refunded within a month.

Yours sincerely
xxxxxx

The loan was opened 5th August 2010. The revised statements they sent covered the period from the opening of the loan (so first annual statement was dated 4th August 2011) to 4th August 2014.

I'm still waiting for FD to call me back with an explanation of how they calculated the £510 refund. In answer to some of the posts above. Yes I am very happy with £510 considering I wasn't expecting it. However if this amount is indeed correct then the letter as detailed above is very misleading. Even the guy I spoke to at FD agreed it didn't make any sense. And you can't tell me that if you received a refund for £510 and though it should be quite a bit more you wouldn't query it!!!