Permanent TSB

Anna23

I would much appreciate some help as PTSB has done it again. This morning I receive a "lovely" letter from my bank. To make a long story short, I have taken out a loan, variable rate on the 30th of November 2007 for 15,000 euro, which is due to end on the 30th of November 2012. With interest and everything I would have to pay 18,000 euro, which is understandable.

The letter states, I have to pay a further 1,534.43 euro which means I have to make an additional 6 payments, after November 2012. It was a variable loan, so they should have adjusted this accordingly, and they haven't done it, nothing to do with me. I went to my branch where I took the loan from, and they have advised I can book an appointment which I have done, for Wed. I am in total shock the letter doesn't even give me a break down of the interest, I have never received a letter about my variable term loan. I have advised them I am refusing to make the additional 6 payments and I would love to go to court, I do not mind, as I am sure the judge will understand. I am appalled and disgusted as I have never ever missed a payment with them, never! Might I add that the tone of the letter is down right rude and annoying, and how dare they?

What am I to do? I will pay the last amount of 304.86 euro on the 30th of November and that is it, I am unemployed as it is, was made redundant recently so probably they thought the 5k I got is my new salary, wrong.

Any ideas, as I will not be paying the extra amount of 1,534.34 which hasn't even been explained to me, no breakdown, nothing. They must surely think I am stupid to sit down and pay this.

This is illegal, any ideas on what to tell the bank manager on Wednesday as now I am closing the account and moving everything onto my parents until I can open one with AIB.

Please any ideas or comments are welcomed.

Thank you

Paulw

Firstly, the letters are automatic and system generated. Someone didn't sit down and specifically type a letter to you. No one specifically sat and looked at your balance, figures, account balance, etc.

A system noticed that your interest was charged at the wrong amount. This then generated letters to everyone in that situation, including you.

If they do take you to court, I'm afraid that they will win, since these things are almost always covered in the terms and conditions of the loan.

Talk to your branch, but the best that can be arranged will be an agreed payment plan. You will have to pay the money.

Sorry to give you the bad news.

Anna23

Paul I am fully aware they are system generated, however I am sure that the initial letter had to be drawn up by someone who decided if the wording was correct and adequate.

I do not plan on letting them get away with this, it was a variable loan, and i have read the small print, which I plan on bring to them, as they have made a small mistake, so I hope to get them to understand this. I refuse to pay the 1,500 euro, which I do not owe to them, just because of their silly system. I have read on other forums, that they have done this, and didn't get away with it. I am sure with everything that banks are doing now, a Judge will defo not side with them, and hopefully pity me.

I shall never deal with PTSB again. I have had previous loans with AIB and BOI and never had this issues and both loans were variable. They should have told me before not 4 months priory to the loan ending that they want 1500 euro more, otherwise I would have made extra payments to cover the shortfall, trust me I would have.

This basically means that they can change the 1500 euro and increase it as they please, and end up paying a loan of 15000 over 25 years and be charged 150% interest. This is a load of b******** in my opinion.

But thanks for your input its much appreciated.

Scaman5

Anna23 wrote: »

I would much appreciate some help as PTSB has done it again. This morning I receive a "lovely" letter from my bank. To make a long story short, I have taken out a loan, variable rate on the 30th of November 2007 for 15,000 euro, which is due to end on the 30th of November 2012. With interest and everything I would have to pay 18,000 euro, which is understandable.

The letter states, I have to pay a further 1,534.43 euro which means I have to make an additional 6 payments, after November 2012. It was a variable loan, so they should have adjusted this accordingly, and they haven't done it, nothing to do with me. I went to my branch where I took the loan from, and they have advised I can book an appointment which I have done, for Wed. I am in total shock the letter doesn't even give me a break down of the interest, I have never received a letter about my variable term loan. I have advised them I am refusing to make the additional 6 payments and I would love to go to court, I do not mind, as I am sure the judge will understand. I am appalled and disgusted as I have never ever missed a payment with them, never! Might I add that the tone of the letter is down right rude and annoying, and how dare they?

What am I to do? I will pay the last amount of 304.86 euro on the 30th of November and that is it, I am unemployed as it is, was made redundant recently so probably they thought the 5k I got is my new salary, wrong.

Any ideas, as I will not be paying the extra amount of 1,534.34 which hasn't even been explained to me, no breakdown, nothing. They must surely think I am stupid to sit down and pay this.

This is illegal, any ideas on what to tell the bank manager on Wednesday as now I am closing the account and moving everything onto my parents until I can open one with AIB.

Please any ideas or comments are welcomed.

Thank you

Hi Anna,
While the loan you took was at a variable rate the repayment was based on the amount, rate of interest and the term at the time you took the loan, in effect the repayment amount was set from the date it was issued. Any changes in interest after that are dealt with at the end of the loan and this would be in the terms and conditions. The problem is that while mortgage rate have been low over the last few years term loans haven't. You might have taken the loan at 7.% and it could be now 12 or 13% which is why there is still an amount to pay. The same happens in reverse if rates fall. I can see why you would be annoyed but get them to give you a copy of the terms & conditions.

Anna23

Thanks, I understand what you are telling me, I have read the small print and in the small print it says that any changes to the interest rate shall be sent to me by letter, this was never done, the interest rate I took the loan at was 8.1 I believe. the issue is, why wasn't I informed, and why are they telling me 4 months before its due to end? don't get me wrong I would have made additional payments if i knew, seeing that it is a variable rate, they should have changed this accordingly, reason why I took out the variable back in 2007, sure its hard to know what will happen 5 years down the line, but still asking for an additional payment seems quite ridiculous and absurd. I have never missed a payment or been late with a payment. I have had loans before on variable rate with AIB and BOI (paid in full) but never have I received a letter quite like the one I have received today, which was extremely rude, someone needs to revised the letters that are system generated. Might I add that they have still failed to send me a breakdown and where the money is coming from? And how they came to the conclusion I still owe this money! I am hoping they will write it off, I am, honestly I am.

If I am thinking about this, it means that if I agree to pay the 1500 euro, 1 month before its due for final payment, they can turn around and say, well actually u still owe us another 2 to 3 months. I mean I can surely expect this from them, cant I? seeing how things are, they are capable of doing this?!

"Any changes in interest after that are dealt with at the end of the loan and this would be in the terms and conditions" - this is not in the terms and conditions that I have received when I took out the loan!

killers1

Was there any form of 'payment protection' built into the loan that they 'advised' you to take out when you took out the loan?

Anna23

oh yes there was...hmm life insurance! pls do not tell me they are claiming this, as I did cancel it a few months after taking it out, didnt see the point! but if they are trying to cover and clam it as interest, then they have problems!

jamiechap

Hi Anna

How did you get on with this, im in the exact same situation now.

Mellio

Sorry for dragging this up but I would like to know how you got on with this as I have the exact same issue also with a loan this due to be paid in Apr'13.


I had a discussion with some unhelpful robot on the phone woh just splurged terms and conditions to try and put me off.

I have sent my compliant to the custmer relationship department and waiting for a response.

I have approached this from a different angle as I beleive they have not taken the capital amounts of the loan and it is nothing to do with the Interest not yet charged.

The terms & conditions state that they will obtain monthly periodic payments to ensure the full amount of capital and Interest is obtained thruoghout the term of the loan. This they will not have done come Apr'13.

I was also advised by the person on the phone that all Interest has been charged correctly through the term of the loan so there clause of extending the term if the loan is not fully repaid due the changes in Interest rates is does not come into play as they will have fully charged the interest for the full 5 year term that I took out.

I know these banks have there arses covered with these things as there well drilled legally but still beleive they should stick to the terms that we applied for which was 60 months not 64 months and deduct the right amount of repayments over that period instead of surprising people with a letter that there loan is to be extended by a further 4 months which I beleive will apply more interest to the remaining balance.

If they have not taken enough interest over the period then why should I pay an additional 4 months at higher rates due to there bad practice in being lazy calculating this interest and if they have taken the right amount of interest to date then they have not stuck to there terms and conditions in deducting the right amounts of capital repayments.


Anyway would be interested to know how you got on or the last poster before me?

Thanks

BuffyBot

As per the forum charter, please don't bump old threads

As the OP may not be watching this forum, if you want to check something with them, a PM might be a better method of doing so