Just applied for a LTSB Loan

Darren_Jey

Obviously, with it being Christmas, I have decided that I need a little bit of extra cash.

Thinking that an extra £1000 will be plenty, I applied online for a loan My terms were No PPI, over 12 months, £94 p/m total repayable £1400
.
Once it had all gone through online, I was asked to call LTSB to provide some additional information.

I spoke to a guy on the other end of the phone, who convinced me to add this to my current loan I have with them (£2800 @ £182 over 17 months remaining), and pay my £400 OD, there is a charge of £50 to do this, but I thought it would be less hassle.

Once I had given all the additional Information he told me that it would extend my current loan my only a couple of months and my payments would be £247pm. I was happy with this and decided to go ahead with it. I was told that they would then have to phone through to another department to auth the loan and he would call me back.

When I got the call back, he told me that they would only agree to the loan under certain conditions. Instead of the original 24 months, I would have to take it out over 48mths and I would have to leave a £50 OD.

My payments had been taken down to £156 per month, taking my loan up to £4200.

It wasnt untill I ASKED, that he told me the total amount repayable.

£7500 !!!!!!!!!!

A whopping £4700 more on top of my existing loan, just to borrow £1400!

This caught me off guard and I agreed to it

I'm going to cancel the agreement and try again to a separate loan rather than combining it.

This is a joke, I cant believe they try and get away with doin stuff like this!

fatgit

shocking!!!!!!!!!!!!!!

CLAPTON

I would indeed cancel it if you can and as quickly as possible.

Lesson learned I'm sure but just to add

-best always to ask them to write to you with the full details before you agree to any loan... being quoted figure over the phone is very confusing.

- reconsider the reasons why you are in debt... I'm afraid xmas is no reason to borrow money; its a totally predictable event and you need to think 'save up for things' rather than borrow.

If indeed you had borrowed £1,000 over 12 months paying £94 p month, that works out at a staggering 27% APR

Burlesque_Babe

There should be a cooling off period where you can cancel it.

mrmajika

You will not have agreed to the loan until you have signed and returned the paperwork. If you don't sign and return it then you are not commited to the loan. There is also a 30 day cooling off period.

The maximum APR LTSB offer is 24.9%. It can't be anymore than this.

The reason they will have had to phone you back is that your loan will have been referred to the LTSB lending decisions department. By the sounds of it, their sanctions will have been to spread the payments over a longer period, remove the overdraft and put a lending restriction on the account, which means no more loans, credit cards or overdrafts for a year.

You might struggle to get the 2nd loan as a separate loan along side your other one, but it's worth a call.