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Posts posted by Bizzimum

  1. Was your loan definitely on a fixed rate to start with? Secured loans usually seem to be fixed. I thought my rate was fixed, but only my payment was. I have just settled my loan and by my reckoning I was paying around £100 per month less than I should have been. I wonder if they let the shortfall rack up to a certain level before they do something about it? I never had any official notification of any interest rate fluctuation except retrospectively on my annual statement. They told me it was my duty to keep an eye on the interest rate (published in the national papers apparently!) and amend my own payment accordingly (I paid by Direct Debit!?). Even as I am typing this I do realise what a load of carp it sounds. I have encountered a few people on the internet who have the same kind of problem and until recently they too were blissfully unaware of how their loan operated.

    Do SAR them they will send a load of garbage, but the interest rate applied right through the period of your loan will be in there.

  2. This was my thread when I originally worked out the implications of my loan, which, incidentally, was also taken out with First National.


    I am not going to let the matter drop. Operating a loan in this manner can in no way be acceptable.

    BTW did you use a broker and if so which one?

    We can't be the only people with loans that operate on this arrangement and I reckon many people haven't realised what's happening yet.

  3. Sounds like your loan is like mine. They gave me a right load of carp about how their base rate is published regularly and that I was supposed to keep track of it myself:rolleyes:. Mind you, I'm not sure how my rate related to the base rate, but that's another story. This would seem to be a massively unfair contract term and I'm waiting to see how the Firstplussers (who are in a worse position re their interest rates) get on and then I'm going on the attack.

    I guess you were only informed of your interest rate, retrospectively, on your annual statement?

    I started writing a letter of complaint about what I'd been told, but it sounded so ridiculous I never got round to sending it.

  4. Did you always pay the same monthly payment even though your interest rate was variable? It sound like the £900 is some kind of balloon payment. If I had let my loan run it's course I was looking at a £17000 shortfall. That was after 5 years of a 15 year loan - I don't want to think about what it might have ended up as!

  5. Yes it should, however as a Barrister told me if GE say they no longer have the document, there is not a lot you can do about it. amazin.


    If the said underwriting sheet contains details of the commission paid to the broker they should take better care of it in my opinion - it being "sensitive commercial information.";)

  6. Do you happen to have a variable rate loan with a fixed monthly payment?

    I'm looking into loans like this as I have one too. I don't know how many payments I have left. I recently reckoned I would have a shortfall of about £17500 at the end of the original term:eek:.

    Did you use a broker?

  7. Hi,


    Interesting document:


    3.11.2 Broker Fee

    You are able to charge an optional broker fee of up to 10% of the net loan up to a maximum £3,000.


    The fee will be added to the loan advance and will then be paid to you with the commission. All fees need to be included in LTV calculations.


    I guess added to the loan advance means one will be paying interest on top of the £3K for the duration of the loan.


    Looks like a double whammy for the everyone! :)


    Is that from Steveoram's document?

  8. The commission is not paid by us(the customers), it is paid by the company. I dont care if my broker got paid by my mortgage company for finding me.

    If i paid the money myself, then i would have something to say but as we dont, it really doesnt matter.

    It just seems to be a case of trying to find fault for no reason in all thses companies. What agreements companies have between each other is between them, not us.


    But it would if they didn't necessarily act in your best interests, to earn themselves a higher commission. My broker has openly advertised having a "special arrangement" with GE.

  9. If you took out PPI with your loan then you might be one of the lucky ones. It is likely to make the agreement a 'multiple agreement' - under S.18 of the CCA - which means there needs to be separate prescribed terms for each part, i.e. for the loan and for the PPI separately. It may be that your agreement was not laid out like that - of course you need to see a copy of the agreement to be sure.


    If you have a multiple agreement that puts any part of the loan under £25,000 then the Consumer Credit Act will apply. Then you can check to see if the agreement is enforceable or not - i.e. if it's missing the prescribed terms (separately stated for each part), then it may be deemed unenforceable.


    What exactly is a multiple agreement? I just read that if the loan was over £25000 and was consolidating existing debt that was already covered by the CCA it would be regulated. Does this mean all the consolidated debt had to have been with the consolidating company IYSWIM? Or would it be covered if you were paying off various other regulated debts?

  10. I'm still waiting for SAR documents. I really need to be rid of this loan. Looking at the current interest rate I am facing a balloon payment of a possible £17500:eek:. Bearing in mind I asked for a loan that would be paid off by the time OH retired (the 15 year term) I feel somewhat mis-informed. My original agreement does state minimum monthly payment of £X, but with no illustration of the consequences of not increasing the payment if the interest rate rose. GE obviously carefully leave me in blissful ignorance of what my current interest rate is - apparently I have to find out for myself:confused:. I am informed in tiny writing at the top of my annual statement what interest rate has been applied and when. There is never any suggestion of increasing the payment, in fact the account must have been behind schedule when they reduced the payment.

    If I settle the loan would I still be able to go after them (and the broker, if MBNA ever admit they exist:mad:) for mis-selling/secret commission. I can only assume that their reluctance to supply the underwriting sheet speaks volumes:rolleyes:. Where do I stand if they can't/won't supply the revised payment documentation?

  11. Cheers Suzi. I'm certainly not giving up. There's obviously something they don't want me to know. I must admit that their failure to provide the amended agreement doesn't seem terribly clever on their part.

    Did they roll over fairly easily at/before Court?


    LCUK/MBNA are actively ignoring me too. We'll see;).

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