Loans to pay off overdrafts & cards ???

[photoman]

Has anybody else been in the position of taking out loans to pay off overdrafts...or even credit cards.....the level of which themselves have been caused in great part due to bank or card default charges !!

 

Surely in this scenario, then you should be able to claim back the interest portion of that loan that relates to the paying back of the charges portion of the original overdraft ???

 

ie; You would not have taken out such a big loan in the first place had you not had all the original charges !!!

 

You are in effect taking out a loan to repay the charges which were wrong in the first place, and then paying additional (often much higher) interest !!! :-x

[mr.t.wright]

they get us everywhich way we turn. how about waiting for a cheque to clear when in this day and age they can take the money out of an account instantaneously... so they're making money out of our not having money.

[gizmo111]

Yes I have included interest on loans on my 2 Nat west claims

 

http://www.consumeractiongroup.co.uk/forum/natwest-bank/11431-nat-west-3-claims.html

 

and

 

http://www.consumeractiongroup.co.uk/forum/natwest-bank/41199-nat-west-2nd-claim.html

[photoman]

Gizmo. Read your thread and sounds like they are using the loan portion of claim as a stalling tactic. I gather this has been made doubly difficult due to the Joint account issues. Myaccount is just my own, but My thinking now is that I put in the standard claim for charges on that account over period, and then a second claim later for the interest on the loan axccount once first resolved? I wonder if this would be possible and work ?

[gizmo111]

Gizmo. Read your thread and sounds like they are using the loan portion of claim as a stalling tactic. I gather this has been made doubly difficult due to the Joint account issues. Myaccount is just my own, but My thinking now is that I put in the standard claim for charges on that account over period, and then a second claim later for the interest on the loan axccount once first resolved? I wonder if this would be possible and work ?

 

No loans were just in my name and the 2nd claim the account was put into my sole name and the new loan paid the od and charges. They will pay the charges abut argue about the interest as in theory they will not have to disclose their charging regime on a part settled claim. I would claim for whole lot together as I think that putting a 2nd claim in for interest only wil lbe even more complicated. At least if we all do the same thing then they will start to deal with us uniformly.

I putthe interest in the spreadsheet same way as I did o/draft interest and claimed for lot - and I won't be happy until I get it.

I am going to contact them end of week - as I still have a big fat cheque and can't cash it!

[JED]

I took out a loan of £55,000 to 'consolidate' my debts from credit cards, store cards, bank overdraft and other small loans. As this wasn't quite enough to pay off everything, I still had a small amount on a credit card, I soon ran up another debt - and so it goes on. That debt of £55,000 with interest is now £121,000! Please anyone reading this DO NOT be tempted into so called consolidation loans they don't solve the problem just make it bigger. I found a company called Payplan who work out arrangements for you with creditors free of charge. Good luck with getting the interest back.

[sn00psmum]

I found a company called Payplan who work out arrangements for you with creditors free of charge. Good luck with getting the interest back.

 

Sounds like an IVA?

 

Anyway, i've been directed here by Photoman (thankyou PM) and i'll post the same here about my Provident loans as elsewhere to try and revive this discussion. As Photoman says, it's a very important issue which i'm sure alot of us are familiar with so here goes:

 

Due to RBS making sure that we were permanently skint we've had a number of loans over the years from Provident.(stupid, I know!) We always approached the bank first but were always turned down flat and Provident have saved our skin loads of times when the bank wouldn't help, but their interest rates are atrocious, £6150 in loans over the last 5 or so years has resulted in interest of £3852.20!!!

 

I hear that some people have had success claiming interest on loans that they would not have needed if it weren't for the penalty charges they incurred. I also know that we wouldn't have gone near the 'Provi' if we hadn't had to.

 

My question is can we claim this interest back? Our charges claim with RBS is for over £7k making the amount borrowed from Provi almost the same amount.

 

How do I go about getting this started? Are there templates for this purpose? Has anyone any advice or experience on this?

 

Thanks, SM:p

[photoman]

I have today just sent a PM to some of the members I discussed this issue with before.

They had then had some ideas about working on a spreadsheet to help in working out reclaiming loans due to charges.

Hopefully, they may have made some progress, or have some further comments now as a result of reviewing the matter.

I will keep you all posted as and when hear back from them.

 

Snnopsmum

Thanks for joining in !!

Do you know how to put a link to this thread into your signature?

Might help to encourage more to join in the debate.

Regards

PM

[sn00psmum]

I'll have a go Photoman:) Not great at this type of stuff but I was going to try & do a sig tonight, watch this space!

SM:p

[gizmo111]

They had then had some ideas about working on a spreadsheet to help in working out reclaiming loans due to charges.

 

 

I just worked out the charges at the time, the interest on the loan, and apportioned the interest.

 

eg if the loan was £10,000 with interest of £2000 and the charges in the loan were £4500 then £2000/10,000 X £4500 =£900 - being the figure you should reclaim due to charges.

 

I have had my claim paid in full. But bear in mind this was on a bank loan with the bank I was claiming from - if you are talking about consolidation loans to pay off other debts then you will need a much more sophisticated calculation and proof that the reason you took the loan was to pay off debts that were made up of charges. Internal bank borrowing is usually easy to prove as the reason for the laon would be something like 'refinance borrowing with this bank' and a lot easier to prove the purpose of than a third party loan.

 

eg if the loan was £10,000 with interest of £2000 and the charges in the loan were £4500 then £2000/10,000 X £4500 =£900 - being the figure you should reclaim due to charges.

[sn00psmum]

Can't see that my sig has changed yet- do I have to do a new post before it shows? Guess i'm about to find out!

 

Aargghhh, not working!!

[thereshope!]

I to have taken cosolidation loans out over the years with NW and I would imagine it would be pretty easy to trace back to when my initial cash flow problems started.

 

it would have been circa 1990 when i left home and hot footed it up to yorkshire to live with my b/f.

 

I was 18 and skint and the manager of my local branch hauled me in for a good talking to every other week -and 'forced' me to take out a consolidation loan by rescindering my o/d.

 

The rest ,as they say ,is history...

 

I intend to start a new NW claim for 1990 -2000 when the current claim is concluded and would like to have a go with these consolidation loans.

 

Good move in re-newing interest in this thread PM.

 

Hope xx

 

 

PS I have put a link in my sig to this thread.

[millymollymoo]

I just worked out the charges at the time, the interest on the loan, and apportioned the interest.

 

eg if the loan was £10,000 with interest of £2000 and the charges in the loan were £4500 then £2000/10,000 X £4500 =£900 - being the figure you should reclaim due to charges.

 

I have had my claim paid in full. But bear in mind this was on a bank loan with the bank I was claiming from - if you are talking about consolidation loans to pay off other debts then you will need a much more sophisticated calculation and proof that the reason you took the loan was to pay off debts that were made up of charges. Internal bank borrowing is usually easy to prove as the reason for the laon would be something like 'refinance borrowing with this bank' and a lot easier to prove the purpose of than a third party loan.

 

eg if the loan was £10,000 with interest of £2000 and the charges in the loan were £4500 then £2000/10,000 X £4500 =£900 - being the figure you should reclaim due to charges.

 

 

[EDIT]

[photoman]

Can't see that my sig has changed yet- do I have to do a new post before it shows? Guess i'm about to find out!

 

Aargghhh, not working!!

 

Snoopsmum

I think the general rule with sigs showing up on threads is:

a/ Your sig only show up the first 3 posts you make on that particular thread (you've made 4 or 5 here already)

b/ I think you have to type in a minimum number of characters,,otherwise everytime someone just types something like "i agree" or "bump" etc then their sig will show.

c/ Only good looking people are allowed to have sigs...........okay I made that last one up !!!

 

Try posting on another thread, and see if your sig shows up there?

 

Regards

[sn00psmum]

Ok PM, will try that! Am being dumb, too much Mother's Day wine!!

[gizmo111]

Ok PM, will try that! Am being dumb, too much Mother's Day wine!!

 

lol I can relate to that - and the dodgy breakfast:)

[Guest Battleaxe]

We took out our first loan because of charges, now you have me thinking. Long story but I think I will throw this into the ring to keep them on their toes.

[photoman]

We took out our first loan because of charges, now you have me thinking. Long story but I think I will throw this into the ring to keep them on their toes.

 

 

Good move Battleaxe

Your very very welcome here.

I think the time is ripe to now really bring this issue to the forefront, as it is yet another way they they have sneakily taken advantage of us !

If you think about it, it really amounts to much the same principle as the extra overdraft interest we reclaim in our standard claims, and we are all winning on that front.... so I think it really is reclaimable on the same principle.

Please spread the word !

[elizabeth1]

Good move Battleaxe

Your very very welcome here.

I think the time is ripe to now really bring this issue to the forefront, as it is yet another way they they have sneakily taken advantage of us !

If you think about it, it really amounts to much the same principle as the extra overdraft interest we reclaim in our standard claims, and we are all winning on that front.... so I think it really is reclaimable on the same principle.

Please spread the word !

 

 

Well - now you come to mention this topic - WE were doing fine till just after the Foot & Mouth Crisis when Hubbies employers went into administration due to untimely payments for contracts done for the Govt in clearing this mess up.

 

We are clever people - but we listened to the adverts and kept life "simple" and it meant we kept our eggs in one basket!!!

 

We had our Mortgage, personal loan, secured refurbishment loan, buildings & contents insurance, life cover, payment protection, 2 current accounts - all safely in "one basket" easy life ??? so we thought!!

 

So then the FUN began!! the endless DD's upon Hubbies redundancy as it was the same company - all the DD's were rejected once - then 7 or 10 days later they'd try again. Then because the DD's weren't being paid the endless charges mounted up & up & up & up. Like the biggest nightmare ever - and there was nothing we could do because the DD's were rejected it meant insurances were voided (paymentcare, mortgage protection, house insurances etc..) and the bill got higher and higher as every month it was added to.

 

We were dragged across hot coals and told to remortgage with same company!!! Because we had got arrears etc.. our fixed rate was taken off us and we had to take a mortgage with a much higher rate of interest etc.. cause we were "undeserving bad payers!!".

 

Now it was quite right we couldn't afford to pay the high charges and the bills while all the protection policies had been voided due to rejected DD's etc.. - Seemed every caution we had ever protected ourselves with had in fact been voided due to these unlawful charges? Some of the premiums were so much lower than the charges being made by this bank and these were taken twice as the DD's were rejected twice to begin with - but this was of little relevance to the "big boys" who were doing this to us.

 

It didn't matter how much we warned of the pending redundancy notice - and we did ask for help to see us through this "lean time" while Hubby found alternative employment etc.. and no assistance was given at all.

 

This obviously cascaded into all our other liabilities in credit cards, utilities etc.. and was such a massive problem at the time - we had no choice but to remortgage with this company to salvage our situation.

 

NOW I am very MAD about this as I now realise that these charges were "unlawful" - and it was these "unlawful charges" that initially caused the financial mess where our policies were voided and made useless? Had these policies of paid out we'd never have had a problem - life would have been as per usual as we'd paid for these expensive policies to cover such events??

 

What happened to us was nasty and I do get very angry when I think of it now as I see it wasn't our fault it was the dirty deeds of the Bank involved etc.. I need to let the anger pass before I deal with these people as I plan to get EVEN!!!

 

I will work out a way to go back over that ground - and will be able to show that this company pulled a fast one on us!! Just a thing or two to tidy before I plot this one. I will get my own back for these dirty deeds!!!

 

BUT yes - we were definitely led into higher priced products to amend the devious tactics of this Bank!!

[photoman]

Elizabeth

Words fail me about their behaviour !!

Hell has a special corner set aside for these people !!!

Which Bank was it ?

Please post a link to your thread when you start to kick butt over this one !!

All the best

[Seahorse]

A story familiar to a hell of a lot of people, I suspect. Been in a similar situation myself, and found myself refinancing over and over again, until it's got to the stage where I had to remortgage with my bank, just to be able to pay off loans with WELCOME and their ilk, because my financial status was in tatters. So now, despite my income being considerably better than it was 10 years ago, all I seem to be doing is improving my income just to pay out on debts that accrued during the past 10 years or so, and now I'm paying over 3 times the amount I was paying 6 months ago on my mortgage. Refinanced with the RBS, by the way. The self same folks who kept banging away with ther "fair and transparent" charges.

 

But how do you even start to collate something like that in a fashion that would satisfy a judge? i wouldn't have a clue where to begin.

 

And some folk have the gall to question whether I should feel morally obligated to PAY MY DEBTS even if I have a technical way out by way of certain financial institutions' ineptitude when it comes to drawing up an enforceable CCA???? HAHAHAHAHA.

[Guest Battleaxe]

Like Elizabth 1, we had all our eggs in one basket and the bank knew they had us over a barrel because of the circumstances. I am definietly going to go for the charges back on the first loan, because this will reduce the capital on the loan we have now, yes we kept extending to keep covering costs of the unlawful charges on the current account, hence we are at the stage we are at now and in the process of getting the FOS to intervene with getting the loan terms renegotiated. the bank? Alliance & Leicester. I will never trust the bankers in England ever again. I seriously am thinking claiming the principle of the loan, because this was borrowed to cover our living expenses. it get so complicated. perhaps that Interest component alone going back to 2000, with compound contractual will be enough to reduce the principle of the currect loan. I know this sounds complicated, but I maybe I should create a flow chart for the simple minds at A & L Personal Finanace Limited to follow, but then again why should I do the forensic accounting for them. MIB at A & L, please take note of the next flood gate opening in your direction. Some goodwill at this stage might help your cause when we get up in front of the Judge.

[photoman]

If there are any moderators looking in here, I think there are some stories of Bank behaviour that various Press organisations might be interested in?

Would it be worthwhile drawing this threads attention to Bankfodder and Dave?

PM

[sn00psmum]

This is turning into a really gritty thread and an interesting read, for all the wrong reasons- obviously all of us wish that we weren't in this forum in the first place! It's just comforting to know that we are not the only ones who feel anger, frustration and helplessness at the hands of the banks. We have a loan with Welcome at the moment for £10k, it was initially going to be £16k and I remember when we were in going over the papers (a humiliating and degrading experience in itself) I caught a glimpse of the total interest and almost swallowed my tongue- on the £16k figure the total payable was going to be over £80k!!!! The guy who was dealing with it for us tried to hide the figure from me- he could obviously tell from the look of sheer panic on my face that i'd spotted it. We had no choice though, we managed to shave off some of our less important debts and bring the loan down to £10k but for that we are paying over £300/mth and if the DD is returned they phone and phone and phone until you pick up and insist on doing a home visit to collect the arrears. If you had the money your DD wouldn't have bounced!!?? Welcome was last resort before an IVA or bankruptcy. This loan is secured against our already remortgaged property.

 

We have numerous Provident loans as mentioned in a previous post. Most of these were to cover our payroll (hubby self employed joiner) when we had maxed out on Provi we had to lay off 5 out of our 6 employees. One of them has recently dragged us through an employment tribunal for unpaid wages even though he knew the position the business was in, partially caused by lazy & unproductive workforce of which he was the worst culprit, besides the point though, he's still entitled to his pay! RBS refused yet again to help.

 

The one thing we owned that was paid for with all our own money was our car. It was old but ran well and we were proud that we didn't owe a single penny on it, it was ours. We went to the bank to ask for help one day and were told to tighten our pursestrings (we don't even manage a trip to McDonalds with the kids these days!) and sell our car! Because they had left us no choice, we did sell our car. We p/ex'd it for a banger (which now subjects us to large garage bills) and got £1000 cheque which we stupidly deposited in our RBS a/c. where charges swallowed all but £200 of it.

 

Business now all but dead, hubby having to find work in better paid areas just so we can cover bills & eat, he's never home with family and when he is home he's asleep! Work van (therefore livelyhood) in danger of being reposessed. House falling down around ears as no cash to do it up or even maintain/ fix it. Because of this kids embarrassed to bring friends home. All of us close to nervous breakdown, even kids I fear! Every aspect of every day of our lives is in some way affected by

bank charges. Most of all the fact that we are not happy where we are and would love to move but simply can't afford it, by the time we are able kids will be oldenough to say they don't want to and we'll be stuck here forever!:o

The greedybanks deserve to be shut down for what they put people through. CAG members should join forces and open a penalty-free bank or credit union!

Sorry about the rant, feel like i'm in therapy and probably should be, hehe!

SM:p

[sn00psmum]

Alliance & Leicester

 

Oops......that's who our parachute a/c is with as we're going after Nationwide next. We've been with them for years and they wouldn't even give us a debit card because of the mess RBS have made of our finances. A&L on the other hand opened our a/c with a chq bk & debit card. Maybe they think they will make a fortune from us aswell.

 

Sounds like A&L have given you a really hard time too though!

 

I'm seriously considering going back to paper bills which I can pay with cash at the Post Office- banks, who needs them? Mind you, P.O. more & more like a mainstream bank with each passing day........

SM:p