Unenforceable loan agreements

~Brock~

bobpitbull wrote: »

I understand that some people can be "higher risk" by not paying on time... but lets face facts... we're in a recession right now. Is it right for, on one hand, the government trying to help people by lowering interest rates and trying to help people who have been made redundant... then, on the other hand, other financial institutions increasing their rates for, probably, the same people...

It is a commercial decision based on factors that determine the prudent running of their business. There is little to be gained by talking about it in such general terms.

bobpitbull wrote: »

What's happening is that companies like Virgin are forcing people into bankruptcy...

I think you will find that people are perfectly capable of getting themselves into bankruptcy.

bobpitbull wrote: »

If Richard Branson's companies suffer the same difficulties as individuals, he'll probably get a cash handout from the government in order to survive... just like Northern Rock, Nissan, Lloyds, Barclays and so many other companies that have taken people for a ride for so long. Meanwhile, as his company is failing and costing the taxpayer even more money, he'll increase his rates and pocket a bonus in the tens of millions at the same time.

Oh dear. Please don't let the fact that you have taken this so personally cloud any ability think rationally.

Just one other small point as well - could you confirm to us exactly how much Barclays has received from the government in 'cash handouts'?

Never let the facts get in the way of a good story eh?

oscar52

Virgin/Richard Branson have nothing to do with the interest rate on Virgin Credit cards - they are rum by MBNA and it is them that decide the interest rate. And yes, they do put them up for no reason (Trust me, I work there and have seen it)

Its not just high risk customers that have them hiked up, but also those customers they make no profit on (ie full balance payers) and also those that have a history of "tarting".

And the reason for many of the hikes is beacuse BoA (who now own MBNA) are struggling (fact).

dvs

I never missed a single payment with MBNA and they more than doubled my standard rate of interest to 34.9%. In fact, I had never missed a single payment with any creditor at that time. They also did the same to my family member who was hardly in debt. It's nothing to do with risk, more to do with greed.

I'm amazed when I see that people have reclaimed £1000 or more in unfair charges. I think, how did your charges add up to so much (not that I dis them in any way - personally I think the banks are to blame for all the debt we are in).

bobpitbull

Exactly... when I said earlier that some of my payments were a little late... what I meant was that the direct debits hadn't gone through but that I'd then manually paid - before the payment deadline - by calling the companies involved...

How can these companies raise their interest rates so much at a time when the government is trying to lower interest rates to help people keep their houses and to stop people going through bankruptcy?

It baffles me...

But, as everyone says, no point in talking about it here... it's not like the CEO of MBNA would read it and think "hey, you know, they're right... it's not very nice of us... let's lower our rate to 8.9%...".

bobpitbull

Is there an article on Martin's website about Unenforceable Loans? Someone mentioned it but I can't find it ... there's only mention of the Bank Charges thing...

Or can someone suggest a letter that I can write to Virgin/MBNA requesting that they lower my interest rate to 15.9%? According to the person that I spoke to yesterday at their call centre, I should've been offered an opt-out when the rate was increased from 15.9% to 29.9%... the fact that they seem to offer these opt-outs suggests that there must be some sort of regulation on this..?

I would happily repay my credit card debt - but, in fairness, I'll never be able to do that with an interest rate of 29.9%..! I'll be stuck with that debt hanging over me for the next 20 years..!

*Chattie*

What actually is your question, your interest rate or how to get out of paying it all back? You'll only have this debt hanging over you for the next 20 years if you don't pay it off when you receive back the £10,000s of tax you are due.

Although someone seems to have a thread entitled CREDIT CARD DEBT - Can I legally wipe it off, I don't think this is a legal issue or endorsed by Martin but perhaps someone will put me right.

cyril82

dvs wrote: »

.

I'm amazed when I see that people have reclaimed £1000 or more in unfair charges. I think, how did your charges add up to so much (not that I dis them in any way - personally I think the banks are to blame for all the debt we are in).

it's actually not that hard to get hit by £1,000 in charges by your bank, it just requires you to take your eye of the ball a little.

i have several bank accounts, 3 business accounts and 2 personal accounts, one personal account was with natwest and i stopped using it in favour of my barclays account (where i do my business banking) i had no bills going through it so i didn't really check it much, then out of the blue (ok not out of the blue as they had sent other statements but i hadn't opened them, as i said, i took my eye off the ball) i got a letter demanding £800 be repaid, it turned out that it was charges, one direct debit had been missed which i had overlooked (it was the last insurance payment on my policy) and i was charged £35, it never went through again as i payed it by card, nor did any other dd's go through but i was charged interest monthly untill it took me over my overdraft limit, i was then charged interest and overlimit fees monthly at a rate of £50 per month untill this mamouth £800 bill accumulated. i am disputing it as i dont really see what they did for the money? seems unfair so i'm trying to get it wiped out rather than pay and reclaim, but it's really not that hard, just takes a little bit of carelessness and they are all over you.....leeches!!

dvs

uktyler wrote: »

I think the problem is these companies need to get money in to cover those who can't, or won't, pay back the money they borrowed.

Yes of course there is a element of greed, they are companies, they lend to make money, not out of the goodness of their hearts.

Personally I don't think the banks are to blame for the debt we are in, just because they offer it does not mean you have to take it.

Everyone signs the T&C's stating the company can change the interest rate when they want, and then seem suprised when they do.

Whilst I agree they lend money as a business, they clearly haven't calculated the risk involved and I think are therefore to blame for their own mistakes - credit agreements that didn't/don't have legal standing, lost credit agreements etc. They also should ensure responsible lending - not many creditors checked income and affordability and until recently weren't too fussed about how much debt you had elsewhere.

With regards to MBNA, they can change rates as and when the like but it seems that they have no proof that customers ever signed the agreement. I think doubling an interest rate, regardless of whether they have a right to do so, is unreasonable. They've lent too much money and are now losing so much money. That's their fault for lending too much, regardless of whether the onus is on the customer to repay.

dvs

bobpitbull wrote: »

Is there an article on Martin's website about Unenforceable Loans? Someone mentioned it but I can't find it ... there's only mention of the Bank Charges thing...

Or can someone suggest a letter that I can write to Virgin/MBNA requesting that they lower my interest rate to 15.9%? According to the person that I spoke to yesterday at their call centre, I should've been offered an opt-out when the rate was increased from 15.9% to 29.9%... the fact that they seem to offer these opt-outs suggests that there must be some sort of regulation on this..?

I would happily repay my credit card debt - but, in fairness, I'll never be able to do that with an interest rate of 29.9%..! I'll be stuck with that debt hanging over me for the next 20 years..!

The new code that MBNA (amongst others) have subscribed to, only started in January 2009. That code basically said that if MBNA increased their interest rates, the customer had an opportunity to request that the rate prior to the increase was kept but their account would be frozen and/or closed. As your rate went up in August 2008, I don't think this would apply. If they have said on the phone that you were offered this option, then you could probably complain (but I wouldn't get my hopes up).

I had my rate increased in August 2008 and a family member had rate increased in Nov 2008. Neither offered the option to freeze the interest. My friend received a letter informing him of a rate increase in February 2009 and he was offered the option to freeze the interest rate and close the account.

There is a useful threads about requesting your CCA (consumer credit agreement). If the creditor doesn't supply one, they probably can't enforce the debt (although this may cause problems obtaining credit in the future). See this thread (rather long though) and this one (which is shorter but should help) about requesting your CCA. There are other threads too.

You could try writing a letter about the interest rate first and see where you get to if you'd rather go down this route.

dvs

cyril82 wrote: »

it's actually not that hard to get hit by £1,000 in charges by your bank, it just requires you to take your eye of the ball a little.

i have several bank accounts, 3 business accounts and 2 personal accounts, one personal account was with natwest and i stopped using it in favour of my barclays account (where i do my business banking) i had no bills going through it so i didn't really check it much, then out of the blue (ok not out of the blue as they had sent other statements but i hadn't opened them, as i said, i took my eye off the ball) i got a letter demanding £800 be repaid, it turned out that it was charges, one direct debit had been missed which i had overlooked (it was the last insurance payment on my policy) and i was charged £35, it never went through again as i payed it by card, nor did any other dd's go through but i was charged interest monthly untill it took me over my overdraft limit, i was then charged interest and overlimit fees monthly at a rate of £50 per month untill this mamouth £800 bill accumulated. i am disputing it as i dont really see what they did for the money? seems unfair so i'm trying to get it wiped out rather than pay and reclaim, but it's really not that hard, just takes a little bit of carelessness and they are all over you.....leeches!!

It still amazes me but I'm not criticising anyone for it. I think bank charges are grossly unfair and people deserve to be able to reclaim at least some of the charges.

Have you tried using an account aggregator to manage your accounts online? I've always used First Direct (you don't need to bank with them). You can log in to all your accounts just by going to the First Direct website (they call it Internet Banking Plus). It's secure and can only be used on each PC that you setup. I just use it on my own PC.