High Street Bank Con
Discussion
Partly me, mostly them...
About 6 months ago I desperately needed 3 grand for the business. I knew it would only be shortish term, but needed it within the hour so i popped along to my local branch.
"14.5%" she said - fair enough, I was desperate
"would you like insurance cover at about £15 per month" she said - took that as you never know what will happen.
"Sign here" she said - so i did (easier than selling an organ)
Anyway, all sorted now so want to pay the money back. I owe considerably more than I borrowed, mainly because of the following:
The insurance premium of "£15 per month" is infact totalled up and added to the cost of the loan! i.e I borrowed 3k + interest + 36x£15.
Is it a dirty trick? - yes
Am I dumb for not reading the small print? - yes
have I learnt my lesson? - yes
just a warning for the PH posse.
Steve
About 6 months ago I desperately needed 3 grand for the business. I knew it would only be shortish term, but needed it within the hour so i popped along to my local branch.
"14.5%" she said - fair enough, I was desperate
"would you like insurance cover at about £15 per month" she said - took that as you never know what will happen.
"Sign here" she said - so i did (easier than selling an organ)
Anyway, all sorted now so want to pay the money back. I owe considerably more than I borrowed, mainly because of the following:
The insurance premium of "£15 per month" is infact totalled up and added to the cost of the loan! i.e I borrowed 3k + interest + 36x£15.
Is it a dirty trick? - yes
Am I dumb for not reading the small print? - yes
have I learnt my lesson? - yes
just a warning for the PH posse.
Steve
towman said:
Partly me, mostly them...
About 6 months ago I desperately needed 3 grand for the business. I knew it would only be shortish term, but needed it within the hour so i popped along to my local branch.
"14.5%" she said - fair enough, I was desperate
"would you like insurance cover at about £15 per month" she said - took that as you never know what will happen.
"Sign here" she said - so i did (easier than selling an organ)
Anyway, all sorted now so want to pay the money back. I owe considerably more than I borrowed, mainly because of the following:
The insurance premium of "£15 per month" is infact totalled up and added to the cost of the loan! i.e I borrowed 3k + interest + 36x£15.
Is it a dirty trick? - yes
Am I dumb for not reading the small print? - yes
have I learnt my lesson? - yes
just a warning for the PH posse.
Steve
B
s - How can you be expected to pay for 'insurance' which by definition is in place for a given period to insure you against potential loss etc??? Surely they should only be charging you for the insured period (ie. however long youve taken to sort your little financial problem out...) As you say - lesson learnt!
Pretty standard as far as insurance goes on loans.. Look at your mortgage for example. Agree they should have been clearer, but if it's in the small print it does make it difficult to complain, as when you sign up you agree to those terms.
Not sure you should have mentioned the name of the bank… doesn't sit well with Ted's no name and shame policy...
Not sure you should have mentioned the name of the bank… doesn't sit well with Ted's no name and shame policy...
Quite common practice I'm afraid. Some loan companies also put all the interest on at the start of the loan and offer a very pitiful return if you repay the loan early. Check the small print on your insurance, if you haven't made a claim you may be able to get some or all of the premium back.
TeamD said:
Not sure you should have mentioned the name of the bank… doesn't sit well with Ted's no name and shame policy...
Ooops!, does that mean I should have referred to the 'Thieving organisation that delivery letters etc in red vans' in my last thread?
Probably not..!! See the "Rules of Posting" link on the right of your reply box…
Ted's Rules of Posting said:
Please don't name and shame companies with which you've had a bad experience. It's a legal problem for us to host such messages.
Yep - I noticed the same on my last loan. Saying it's only an extra x per month is all well and good, BUT the premium for the full term of the loan is added to the loan itself, and you pay interest on the total amount. It may only cost x more in monthly payments, but it increases the amount you're paying interest on.
On the plus side, if you pay it off early you cancel the insurance and get a lump sum back, so your exposure on the loan is only (original loan amount + interest on the total amount) - refund.
I thought it was a bit cheeky, mind, and I wouldn't do it again.
Dan
On the plus side, if you pay it off early you cancel the insurance and get a lump sum back, so your exposure on the loan is only (original loan amount + interest on the total amount) - refund.
I thought it was a bit cheeky, mind, and I wouldn't do it again.
Dan
A mate's dad died very unexpectedly recently with about £6k on various credit cards and almost no assets save a W reg Focus estate.
All covered by payment protection insurance, all have handled their end of things very professionally, so in his case it was well worth it.
In the main though I have a serious problem with insurance companies. As someone once said when trying to explain their take on people making a profit from them:-
"I'm happy to be made love to, occassionally be Fked, but being raped then spat on really pisses me off!"
All covered by payment protection insurance, all have handled their end of things very professionally, so in his case it was well worth it.
In the main though I have a serious problem with insurance companies. As someone once said when trying to explain their take on people making a profit from them:-
"I'm happy to be made love to, occassionally be F
ked, but being raped then spat on really pisses me off!"I had a call from one of my credit card companies the other day. It was for a card I have just taken out (who are offering a rather good interest free period at the moment).
Him: I'd just like to welcome you to [name of albuminous company] and ask if you are happy with the card?
Me: Yes, I am thanks.
Him: Are you aware of our website and on-line facilites?
Me: Yes thanks. I've used them already
Him: Can I take a moment to tell you about some of our other features and offers?
Me: Errrrr, ok.
Him: Just before I do, are you in full-time employment and aged between 18 and 55?
Me: If this is heading towards payment protection then I am fully satisfied with my ability to repay the balance on the card regardless of my future circumstances.
Him: Errrr, oh. Er, well that was what I was going to ask actually.
Me: Ok. Well, unless you have anything else....?
Him: Er, no.
Me: Ok. Well thank you for your call then. Goodbye.
Like shooting fish in a barrel, isn't it?
>> Edited by JonRB on Friday 4th February 15:15
Him: I'd just like to welcome you to [name of albuminous company] and ask if you are happy with the card?
Me: Yes, I am thanks.
Him: Are you aware of our website and on-line facilites?
Me: Yes thanks. I've used them already
Him: Can I take a moment to tell you about some of our other features and offers?
Me: Errrrr, ok.
Him: Just before I do, are you in full-time employment and aged between 18 and 55?
Me: If this is heading towards payment protection then I am fully satisfied with my ability to repay the balance on the card regardless of my future circumstances.
Him: Errrr, oh. Er, well that was what I was going to ask actually.
Me: Ok. Well, unless you have anything else....?
Him: Er, no.
Me: Ok. Well thank you for your call then. Goodbye.
Like shooting fish in a barrel, isn't it?
>> Edited by JonRB on Friday 4th February 15:15
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