How is interest calculated?

user1984

Can you please tell me how you calculate interest on a personal loan?
The information is not available on your website.
I think I have been OVERCHARGED

Bank of Ireland: Alison

Hi user1984

Thanks for your query today.

The way interest is charged can vary on a personal loan account, it depends on the terms and conditions set out in your loan application/ agreement. This page here may help answer some questions. 

We would also suggest calling our Lending Team on 0818 200 334, a colleague will be more than happy to look into the interest amount being applied on your loan.

Thanks
Alison

user1984

Hi Alison,

Thanks for your reply.

In relation to the link you provided, no where on that page is there any information on how interest is calculated. 
For avoidance of doubt, the headings are as follows:

            [font=Arial, sans-serif]Loans / Overdraft[/font]
·         [font=Arial, sans-serif]Can I apply for a loan online or by phone?[/font]
·         [font=Arial, sans-serif]What is the difference between a variable and fixed rate?[/font]
·         [font=Arial, sans-serif]Can I take a break from repayments, or reschedule them over a longer period?[/font]
·         [font=Arial, sans-serif]Are there penalties if I pay my loan back early?[/font]
·         [font=Arial, sans-serif]How many years can I repay the loan over?[/font]
·         [font=Arial, sans-serif]How long do I have to drawdown a loan?[/font]
·         [font=Arial, sans-serif]How much will the monthly repayments be?[/font]
·         [font=Arial, sans-serif]Do I need to have savings or a guarantor to take out a loan?[/font]
·         [font=Arial, sans-serif]Are there any extra charges on a loan?[/font]
·         [font=Arial, sans-serif]What is an Internal Reference Rate?[/font]
·         [font=Arial, sans-serif]How to apply for an overdraft?[/font]
·         [font=Arial, sans-serif]Why would I get an overdraft rather than a personal loan?[/font]
·         [font=Arial, sans-serif]What are interest surcharges on an overdraft?[/font]
·         [font=Arial, sans-serif]How can I avoid interest surcharges on an overdraft?[/font]



If I have missed the exact location, I would  appreciate it you could point it out.



In relation to your suggestion about contacting your lending team, I spent 25 mins on hold to them yesterday wanting to close a loan account.

I wanted the closing balance and when I asked the exact same question to the phone operator, I was given 2 different & conflicting answers. When I queried how this could be the case, I was politely and firmly told it was not there job to explain how interest is calculated to me and that I should contact my branch.

Am I expecting too much that the dedicated helpline and team that deal with personal lending should be expected to know how interest is calculated?

The only reason I had called that number in the first place was on the instruction of my branch.

Perhaps you may be able to provide further guidance on how the interest on variable rate loan facility is calculated?

Thanks

User1984

Bank of Ireland: Alison

Hi user1984

Sorry, we can understand if the link was not helpful as your query is very much account specific. We're disappointed to hear our Lending Team were unable to provide a clear answer to how the interest was charged on your closing balance on your loan account, we'd also like to apologise for the delay on the phone trying to reach a colleague.

We'd be more than happy to arrange a call to you to explain the way interest is charged on your loan with us. Could you please send us a PM with your full name, contact number and your branch? Please be careful not to send any account details on the PM.

Hope to hear from you soon.

Thanks
Alison

user1984

Bank of Ireland: Alison wrote: »

Hi user1984

Sorry, we can understand if the link was not helpful as your query is very much account specific. We're disappointed to hear our Lending Team were unable to provide a clear answer to how the interest was charged on your closing balance on your loan account, we'd also like to apologise for the delay on the phone trying to reach a colleague.

We'd be more than happy to arrange a call to you to explain the way interest is charged on your loan with us. Could you please send us a PM with your full name, contact number and your branch? Please be careful not to send any account details on the PM.

Hope to hear from you soon.

Thanks
Alison

Thanks Alison,

I have PM'ed you my details now.

Just to clarify, the link provided gave no information on my query at all. In fact, that page makes no reference to Interest charging what so ever.

The query I have raised is not account specific as the calculation of interest is standard for all lending products types.

I understand that calculation of interest on different product types, e.g. Overdrafts, Credit cards, fixed rate loans and variable loans will all be different, but surely they will be that same for all products of the same type, i.e. Variable rate loans?


I look forward to getting a call regarding this.


Regards
User 1984

Bank of Ireland: Alison

Hi user1984

Thank you for the PM. Just to mention, variable loans can have different factors within the agreement and it would be difficult to give you a precise answer here. As mentioned, we're more than happy to help with the call back.

Thanks again
Alison

Bank of Ireland: Alison

Hi user1984

Not sure if you have seen my private message I sent back to you yesterday asking for your branch name to facilitate the call. Can you send us this information by PM please? 

Thanks
Alison

user1984

Bank of Ireland: Alison wrote: »

Hi user1984

Thank you for the PM. Just to mention, variable loans can have different factors within the agreement and it would be difficult to give you a precise answer here. As mentioned, we're more than happy to help with the call back.

Thanks again
Alison

Hi Alison,

Thanks for your PM. I have replied to you now.

In relation to the above comment, " variable loans can have different factors within the agreement and it would be difficult to give you a precise answer here";  are these factors in addition to, or in replacement of the Loan Terms and Conditions attaching to personal borrowing that can be found on your website, in all your branches, and that is issued with loan documentation? 

These terms and  conditions (found under -  "Borrow", "Loans", "Personal Loans") make no reference to any other factors that could affect how interest is calculated.

In fact, they clearly state that;

3.2 The Bank will calculate interest on the daily balance outstanding (after adjustment is made for cheques in the 
course of collection).
3.3 The Bank shall compound interest on the Loan at such quarterly or other periodic intervals as the Bank shall in its 
discretion determine.

This is at odds with what the phone operator told me and your comment about "other factors" above.

Am I missing something here?

Also, for my own information, could you please give me an example of a "different factor" that would affect how interest is calculated?

Many Thanks

User1984

Bank of Ireland: Alison

[font=Verdana, sans-serif]Hi user1984[/font]
[font=Verdana, sans-serif] [/font]
[font=Verdana, sans-serif]Your original post mentioned you felt you were overcharged with the interest on your personal loan account. The information you require is out of our remit here and we have offered a call from our Lending Team to discuss this further. [/font]
[font=Verdana, sans-serif] [/font]
[font=Verdana, sans-serif]If you would like to further this, another option is to make an official complaint, details are available to you here [/font]
[font=Verdana, sans-serif] [/font]
[font=Verdana, sans-serif]Although we do try and answer the majority of general queries here, at times it may be necessary to direct you to another department for further help. [/font]
[font=Verdana, sans-serif] [/font]
[font=Verdana, sans-serif]We will need to ask you to try and locate the information requested within the PM we have sent to you to facilitate the call for you. Once you have located this, please send us an update by PM and we will be more than happy to have a call made to you or alternatively you can call the Lending Team directly on 0818 200 334. [/font]
[font=Verdana, sans-serif] [/font]
[font=Verdana, sans-serif]If you have any general day to day banking queries in the future you may need help with, please feel free to ask here.[/font]
[font=Verdana, sans-serif] [/font]
[font=Verdana, sans-serif]Thanks[/font]

[font=Verdana, sans-serif]Alison[/font]