Black Cat

I'm so angry.

Did you know that if you undertake a loan agreement you do NOT have the 2 week cooling off period as you do with other legal agreements. This applies to car loans, white goods and other household merchandise.

Some low interest car loans are not loans but hire purchase agreements cleverly disguised ie this means the loan is front loaded, therefore there is no benefit in trying to surrender the loan early. In fact if you do try you end up being harassed and threatened by the loan company.

If you try to discuss it with them you get passed from pillar to post to a point when you are so frustrated and verging on anger they then put the phone down on you.

Whatever happened to customer care and good will, and the customer is always right. What happened to PR and treating customers with respect.

After discussing this with the a legal entity today it was agreed this practise was unprofessional but alas within the law.

I have another word for these people f****** b*******

Don't do business with Capital Bank

fast bloke

AFAIK the cooling off period applies to any agreement you sign in your own home. If you travel to a business or third party premesis you don't get the cooling off period.

carl

Is this GE Capital Bank?

Mind you, I don't have any good words to say about Tricity Finance.

Black Cat

Thanks, FB, I didn't realise that, and I've found out the hard way and I'm so so angry, so people should be aware of this I feel.

fast bloke

Can't be GE Capital? I've had a number of HP deals with them, all of which I've paid off early, and each time they have deducted an appropriate amount of the front loading.

Black Cat

Sorry but it is, maybe you had a different type of loan, their treatment of me has not been an experience I will want to recommend.

fast bloke

How far up the chain have you got?

Black Cat

Not far.
Paid them loads of money 6 months ago, enough to cover all payments until the end of this year. They claimed I owed still loads more. I rang them discussed it they said don't worry we'll sort it out. Hear nothing for 6 months.

Three weeks ago get abusive threating phone call from some oik - we will put you in hands of solicitors we will repossess the car yabbity yabbity yab..
I said I will deal with it - I pay (reluctantly) the amount asked for 6 months ago. Yesterday get another letter saying I owe them even more money as my account has been in arrears - hello ! since when ? another telephone call which results in oik agreeing to split the difference or else. How can the interest be more now than it was 6 months ago when the account was never in arrears.

They cashed both cheques quick enough.

fast bloke

Sounds like they are trying it on. Do you have anything in writing from 6 months ago? Even if you don't, the cheque and original agreement should be enough to prove that you were never in arrears. You don't have to prove this to them. Just make sure they know you have the necessary documentation if you go to court. Ask Mr oik to explain their escalation process. Escalate the issue through as many lines of management as you can.
If you get no joy from them, ask him for details of the banking and finance ombudsman. (You can get details here, but it is best to make sure the people you are dealing with know you wont roll over.)
Once you have exhausted GE's internal escalation process, report it to the ombudsman. Generally by this time the 'defendant' realises that you can keep about 20 of them tied up with paperwork for the next 50 years, so they give in and give you a refund. Has never failed for me. Good luck


Edited to make it read like english



[Edited by fast bloke - 3/15/2002 4:15:36 PM]

MichelleWRX1994

That's a long paragraph there FB and it certainly doesn't E N G L I S H, I think you should look into that one

fast bloke

Yours really doesn't make any sense dearest

MichelleWRX1994

Damn, sorry

I have just woke up from night shift

I meant to say, it doesn't READ english

CaptainBeakie

That's the problem with HP (most of them anyway). They penalise you if you are paying off early or the lump the interest at the beginning so much that it's not worth paying off prematurely because you don't really save anything rather than running the full term.

It's always worthwhile getting a loan from a bank or a similar institution (IMHO) the interest is normally calculated on the daily outstanding balance and is added to the loan in arrears. You still pay of a larger amount of interest at the beginning but you are not 'stiffed' by penalties or hidden charges.

I know this doesn't help you now.

My experience comes from working for a bank for 15 years and I see some great deals outside of it offering get credit deals (Seemingly alot better than us). However, the smallprint or a few simple questions usually clears up how they are really going to make the money out of you.

Sorry you got shafted mate!!


Beakie

Black Cat

Thanks FB and thanks Beakie very very useful information.

Michelle what you doing in my thread girl? - go back to bed

Black Cat

PS FB checked out the Ombudsman site, and you know what I feel a whole hell of a lot better now, thank you again I really am very grateful. (Big hug!)
P

fast bloke

What a nice way to end a Friday afternoon

Little Miss WRX

Sorry BC

I was merely pointing out my darling's error of ways and making a fool of myself in the process.....I'll go back to the hutch now shall I?

I would go to bed BUT, I do have to be in work in half an hour, so no matter how much I want to, I can't

MattN

hmmmm.

i thought personal loans were subject to repayments by rule of 78.

You'll always pay more interest early in the term because you owe more.

I don't see how an HP agreement would differ significantly enough to make much of a difference to the repayment structure.

Credit Act of 1974 says once you've settled you can't be charged more than 3 months interest as a penalty.

47 NAT

I had a similar problem going back a few years ago. I had the settlement figure and wrote a cheque to pay it all off, after months of aggro

My Dad said to write on the back of the cheque....."This is full and final payment of loan agreement ******* and in accepting this, the contract is cleared and settled"

I requested the cheque back from my bank and when they started playing up (as expected) I quoted what was on the cheque and faxed them a copy...No more was heard from them at all.

But it does infuriate me how they can take the pi$$ and get away with it. American companies are one of the worst to deal with. My mum was stil paying 8.5% on a mortgage with Home loans when everyone else was paying a lot less. She contacted all the governing bodies only to be told..."Sorry we cant help you" ..... There a waste of time, when you need help.

Nath

JASON H

One other thing to bear in mind is that if you invite someone to your home you have no cancelation rights as apposed to being canvassed
Jason