citi-financial

kurjam

hi we took out a loan with citi financial in july 06.

we were told that after 4 months payments we could apply for a refinance and then the apr would be reduced as long as we kept payments up.

now 1 year later we are still waiting, i have phoned and asked them.
when 4 months came i rang them and was told no its 6 months.

can i stop paying my loan and tell them i have been mis sold a loan ??
if so what do i do and what can i ask them to do !!

thanks for any help

jamesd

Don't stop paying. Start writing letters instead of phoning. Build up a paper trail to support your complaint.

Are you now able to get loans from other lenders at better rates? If yes, refinance this one first then proceed with a complaint against them once they can no longer mess you around.

kurjam

would i have reason to say that they mis sold me the loan ??
i rang them today but they were rude and did not want to know

kurjam

have just checked paperwork for the loan and it is incorrect anyway !!
we should pay £178 per month for 48 months total £8544
and we are in fact paying
£44.50 a week for 208 weeks total £9256
overpayment of just over £700 ...
i have written to them as surely this would make the agreement incorrect...
i am hoping that i can just repay the cost of the original loan without any interest and then get them to close my account for good...
do you think this will happen ? ? ? ?

smitchy73

Citi's company policy is no re-financing within a 6 month period as it can adversely affect you're credit report.
As for being mis-sold a loan I don't think you'd get anywhere, you asked for the loan and signed the agreement.
As for the part of the payments, yes chase this up, unless of course you wanted weekly payments, they may class this as extra admin costs??

petermb_2

how did you get the loan. did you deal direct with citi or through a broker?

kurjam

petermb wrote: »

how did you get the loan. did you deal direct with citi or through a broker?

I deealt directly with citi in one of there offices

Sup3rArsenal

Citi had a change of policy that stopped them renewing loans after 4 months and this increased to 6 months.

The only way they can renew the loan is if you credit score for a new loan. So if your other credit has had any mishaps then this could also have an effect.

The other thing to point out is that Citifinancial went through a transition late '06 early '07 when they went from being a 'sub-prime' lender to being a 'near-prime lender'. this means that a fair amount of customers that previously would have passed the credit scoring system no would not.

In conclusion, I do not think that you were miss sold the loan as at time that salesperson was under the impression that they could 'renew' the loan in only 4 months.