lloyds tsb loan

[dizzyking]

I have recently received an annual statement for a lloyds tsb loan that i was advised to take out, I am horrified to see the interest rate at 22.47%

I was "invited" to the bank during a phone call from lloydstsb, to see if they could help me improve my circumstances, I did explain on the phone that I did not think they would be able to, as at the time I was working full time and was very happy with my financial situation.

As they were persistant, I agreed to go in for an overhaul.
A few days later I went to the arranged meeting, and we discussed, making a will, and life insurance, both which I had already made arrangements for, we then discussed contents insurance, which although I had contents insurance with another company, as they were coming up for renewal, I decided to change over to Lloydstsb.

She then wanted to go through all of the payments that were going out of my bank account at the time, one of which was a regular payment to a mbna credit card, she suggested that I look at taking out a loan to pay off the credit card.

As I already had a loan with LLoydstsb with the interest rate of 7.9% I said that if I could have a loan with the same interest rate I would be interested in taking a loan to pay off the credit card, I was told that 7.9% was an extremely good rate, and they would not be able to offer me this rate, but they were offering 11% rate. As the credit card was charging around 21% at the time, I decided to go ahead with the loan, she then proceeded to offer me a buy now pay later loan, were the payments were a little higher, but no mention of the higher interest rate. I ended up with this loan, and signed all agreements, while the lloydstsb employee was happily chatting away all the while.

by the time I got home that day, the loan was in my bank account as promised and I promptly paid off the mbna credit card, I have made regular payments to this loan ever since.

If I had been made aware of the interest rate on this loan, I would never have taken it on. As it was at a higher interest rate than I was paying on the credit card.

I am not at all happy with the rate, as I feel I have been treated unfairly, and would like to know if I am within my rights to make a complaint to the bank about it, and ask them to change the interest rate to the rate I was offered.

I notice that the bank is at present offering a buy now pay later loan at 11%.

any feedback at all would be welcome.

[scoobydoo]

Re: lloyds tsb loan

You should send a SAR letter asking for all details of the loan and meeting including a copy of the credit agreement . It will be interesting to see how they can jusify a loan to repay a cc at a higher rate!

[Tools]

Re: lloyds tsb loan

It could be that the advice at the time was valid, not saying I agree with it though.

1. As the repayments were deferred, it gave you "breathing space"
2. The monthly repayments may have been lower (based on the IR at the time)
3. The interest rate may have been shown to be "variable"

I do agree this is a rather underhand way of making a loan sound more attractive than it actually is, I would follow scoobys advice unless you have copies of the documents saved at home? I assume this loan was signed for after 2007?

[dizzyking]

Re: lloyds tsb loan

The loan was signed in july 2008, I don't have a copy of the agreement, but I do have the copy of the personal summary and recommendations, but there is no mention of the loan on it.

[dizzyking]

Re: lloyds tsb loan

In the light of Lloyds recent fine, I am thinking of chasing up the underhand treatment applied to the loan above, any advice would be grateful. I did send a letter in 2009 and had no reply.