Variable rate loan question

dekbhoy

Hi all. I took out a loan 5 years ago with B.O.I for 15k, it was a variable rate loan . I was going through the agreement the other day re. the loan thinking im sure i took that loan out 5 years ago this month , to my surprise i realised i made an extra repayment to the loan as the term of loan expired on the 7th of january,I rang the bank to inform them of this but they told me then the loan wouldnt be paid off till april as the interest rate had gone up therefore adding an extra 1066 euro onto the loan.On the agreement it states the loan would be for 60 months and the final date of repayment would be the 7/1/2010, it also states that the weekly payments would be adjusted as the interest rate fluctuated but yet the weekly repayments never changed. Would i have a case of telling them i cannot pay the extra 1000 euro as it was their fault the loan had exceeded the agreed time frame for paying back . I was thinking of contacting the ombudsman as they mis sold me the loan .

Thanks for advice in advance
Dekbhoy

ShaneB

Hi Dek - you have a strong case to go the the Ombudsman with, as the bank screwed up, not you.

Put your complaint in writing to BOI first & advise that you intend to make a formal complaint to the Financial Services Ombudsman if your complaint is not satisfied.

Link to the Ombudsman site here. He is pro-consumer at the moment (main man has just retired though), so it's a good time to complain!

Regards,

Shane
www.cfsireland.com

stepbar

dekbhoy wrote: »

Hi all. I took out a loan 5 years ago with B.O.I for 15k, it was a variable rate loan . I was going through the agreement the other day re. the loan thinking im sure i took that loan out 5 years ago this month , to my surprise i realised i made an extra repayment to the loan as the term of loan expired on the 7th of january,I rang the bank to inform them of this but they told me then the loan wouldnt be paid off till april as the interest rate had gone up therefore adding an extra 1066 euro onto the loan.On the agreement it states the loan would be for 60 months and the final date of repayment would be the 7/1/2010, it also states that the weekly payments would be adjusted as the interest rate fluctuated but yet the weekly repayments never changed. Would i have a case of telling them i cannot pay the extra 1000 euro as it was their fault the loan had exceeded the agreed time frame for paying back . I was thinking of contacting the ombudsman as they mis sold me the loan .

Thanks for advice in advance
Dekbhoy

Who is your main bank a/c with? and have you kept your address up to date during the 5 yrs?

ash_18x

dekbhoy wrote: »

Hi all. I took out a loan 5 years ago with B.O.I for 15k, it was a variable rate loan . I was going through the agreement the other day re. the loan thinking im sure i took that loan out 5 years ago this month , to my surprise i realised i made an extra repayment to the loan as the term of loan expired on the 7th of january,I rang the bank to inform them of this but they told me then the loan wouldnt be paid off till april as the interest rate had gone up therefore adding an extra 1066 euro onto the loan.On the agreement it states the loan would be for 60 months and the final date of repayment would be the 7/1/2010, it also states that the weekly payments would be adjusted as the interest rate fluctuated but yet the weekly repayments never changed. Would i have a case of telling them i cannot pay the extra 1000 euro as it was their fault the loan had exceeded the agreed time frame for paying back . I was thinking of contacting the ombudsman as they mis sold me the loan .

Thanks for advice in advance
Dekbhoy

hi Dekbhoy

just wondering if you got anywhere with this as i am in the exact same position as you.

My husband and I took a loan out 5 years ago this october and recently sold a car so we wanted to pay it off. i had calculated that with 8 payments left there should have been €2252 to pay to clear it off, however when i rang the bank yesterday for a closing balance they told me that the loan had been a variable rate which we werent aware of and that we owed €2799, the lending manager said that all that info was in the terms and conditions, however page 7 of the paperwork wasnt there so the terms and conditions werent there. she said we would have to keep paying it back until it had cleared even though the credit agreement said that the last payment was due on 7 oct 2010 and that we would in total pay €16000 or something like that.

Had we known it was variable we would not have taken it out. The reason we got it was because we had been approved for a 100% mortgage at the time but they renaged at the last minute and said i wasnt in work long enough so the then lending manager said she would give the deposit to us as a loan but we werent to tell anyone!!
the lending manager i was talking to yesterday said that there was nothing we could do and that we were missold the loan, that it happened alot a few years ago and they are stricter now about telling people all of this information. that doesnt do me any favours though. she said the lending manager that we dealt with doesnt work there anymore! it is with BOI again.

my mam thinks i should complain, i think i will. i was so mad yesterday, still am!

sorry for the bit of a rant!

dekbhoy

I RANG BOI and the girl on the phone was very surprised that i still owed so much , she rang me back and informed me that the bank were correct and there is nothing she could do :mad:......when i read the T&Cs in depth i found the bank was covered every way except the fact i felt i was mis sold the loan, i think i may just have to accept they messed up by not adjusting the payments from my bank account but in truth it was really my mistake for taking out such a ridiculous loan with no knowledge of market forces etc. contacting the ombudsman is the next step if you feel they will rule in your favour. Proving something someone said verbally is gonna be tough, best of luck which way ya go and keep us posted if ya do get any joy.