The rate of inflation has never been as high as 4.8% for a long long time, Also the leaflet state that they are charging interest, not inflation. I am going to request my original agreement and contact a solicitor, to charge interest as opposed to inflation is mis-selling, esp tot he tune of 2.4% dating back to september 07. Thanks for your response though

I took out student loans between 1998 & 2002 which I have been making regular payments since 2003. At the time of taking out the loan I was advised the rate of inflation would be charged on to the loa each year. i have received this years final statement an I have noticed as of 01/09/2007 I am now being charged 4.8% interest as outlined on the advice leaflet. As I originally signed up on the basis of inflation being charged on any outstanding balance is there something I can do about this as I now feel this loan has been mis-sold to me and presumably thousands more??? Any advice would be appreciated

I worked within the sub prime market for almost 2 1/2 years before the credit crunch set in - I understand and agree with pricing for the risk of any borrower but NOT to the extent of 60% + - this is absolutely extortionate and I was horrified when I found out that some companies charges this. I feel these companies are the type to target people who probably do not understand the implications of the loan. Also their 're-finance' option that I am aware of is even worse - paying off 1 loan with another one can only mean paying double interest. I feel loans like this should only be taken out in absolute desperate measures i.e. borrow or starve to death, not for the yearly holiday or a new flash car!!! Most responsible sub prime lenders have proper underwriting procedures in place and DO NOT lend to people who cannot afford to pay it back for the simple reason that it is not in the customers best interest. Now I have lost my job I have cut back drastically, total rubbish but it won't be forever!!! Not into the buy now pay a lot more later strategy. try typing moneysupermarket into google - finds a variety of loans for any credit rating from excellent to poor!!! At least this shows people the options without then having companies mither you on the phone!!!