Bank changes loan agreement rate ...

[papadak]

Bank changes loan agreement rate ... So i am putting this out there in order to seek some advice:

This has happened to a biz mate ....

Took out a business Drawdown Loan for a sizeable amount in 2003 Has only recently realised that whatever the base rate was at the time an agreed 'add on of 1% was signed and agreed to added to the base rate for the life of the loan (15 years) However discovers that they were in fact paying 1.50% above base rate and NOT 1%

Signed documents clearly state 1%, but the statements show 1.50% ...

He thinks that the person who dealt with the loan in the beginning has benefitted from the difference.

Any tips or advice as to what to do next please?

Thank you

[papadak]

If i send a letter of complaint is there any particular letter structure that you would recommend to start with?

Further to my original post the bank has recently offered compensation of £200. This has been verbally offered and in their words 'this will help us all to move on' I personally smell a rat here, believing that business bankers etc have gained financially here ...?

[Bookworm]

£200? they are having a laugh, aren't they?

If they have been charging more than what they should have, you (or your mate) want the totality of what has been overcharged + compensation, and you expect them to work out exactly by how much you have been orvercharged, and not argue about it either. Bloody cheek.

I don't know what you call a "sizeable loan", but the extra 0.5% could mean a fair chunk of money, especially on a 15 yrs loan.

[Bookworm]

Letter structure, btw, I'd just go with somethign on the lines of:

Further to our conversation, I must decline the ridiculous off of £200 to "move on", and fully expect you to:
1) calculate exactly by how much I have been overcharged and refund this.
2) immediately adjust the interest and payments so that I am no longer overcharged.
3) make an adequate offer of compensation, bearing in mind the amount of which I have been deprived which I could have used to gain interest elsewhere.
4) investigate how this could have happened in the first place.

Something like that anyway.