Career Development loans arggh!

[Wishihadntbothered]

I'm new to here so hi.

 

I am having a nightmare with this bank. I took out a career development loan 4 years ago and believe i was mis sold this product as weel as the payment protection insurance. It was never explained to me excatly how the loan works and how much it would actually cost me.

 

I borrowed £9500, i got a settlemnt figure in June of £17500!!! When i contacted them they said that interest had been added on each day (£5 p/day) for the 4 year repayment hol - and then charged me £3000 on top for payment protection.

 

I am now unemployed and unable to pay the monthly paymnets - cannot claim on the insurance as not been in perm employment for 6 months prior to the claim - again not explained at the outset.

 

I have had numerous letters from Jamie O'neill at the customer care centre and a tearful converstaion with an Andrew someone who told me he "expected" me to know exactly how much debt i would be in when i took out the loan. Shocking!

 

It is in process with the ombudsman - i hope they take them down!

 

Since wednesday of this week i have had 11 phone calls - ranging from 8 in the am til 9 at night demanding payment - harrassment or what? I have explained EVERY single time that i am trying to deal with the situation and have given details of what has happened.

 

Anyone else ever had one of these loans and been gobsmacked at the cost (hidden)

 

Thanks

[la2006]

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Edited August 15, 2008 by la2006
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[blaciuk]

I entered a contract with Britannia-IT in November 2004 to do a Complete Learning Programme, in the following courses.

EDCL

CompTIA A+,

CompTIA Network+,

MCSE

and Cisco CCNA

1. I had to take a careers development loan of £8000. The sum of £7180 was paid into Britannia IT training Academy on the 1st December 2004 and £820 was paid into my own bank account

2. I attended the ECDL CD-Rom course in December 6 2004. I was not happy from that start as I did not need to attend this course firstly because it was very basic. Also, I could have done this on my own PC or could have been completed the course in one day, but was extended to five days (completely wasting my time). I had received more advanced IT training when I was at secondary school.

3. On Friday 10 December 2004, I handed in booking forms for the entire courses as part of the Complete Learning Programme for January-April 2005. However, almost all the bookings I made placed me on standby. For me it was not acceptable to pay thousands of pounds only for the academy not to be able to fully book me on the courses itself. I initially asked for a refund of all course fees in January 2005 through an e-mail I sent to Customer service.

4.They refused to give me a refund of over 7000 pounds because I had attended a CD-ROM based course which has an average retail cost of 10, I even asked to be placed on a shorter and less expensive course and to refund any excess course fees. Again the reason that they gave was because I attend the ECDL CD-Rom course, I would not be able to get any refund or change course.

5.In June 2006 (despite Britannia –IT being fully aware that I had only attended the one course so far,) they still wrote to me demanding I pay them an extra £1,795 within 7 days or would take legal action against me.

6.I then replied in writing explaining my surprise for the request for £1,795 because the career (sales) consultant Matt Craig only stated that the course fees was £7180. I still have the document hand written by Matt Craig stating that £7,180 went to ‘us’ – (Britannia IT), he did a 2 year predictive time line. Absolutely, no indication was given that after a year and half I would be requested to pay an extra £1,795. Britannia IT had made no reply to the letter I sent. So I sent them a cheque for £1,795, to avoid a court judgment affecting my credit rating which they immediately replied to with a thank you letter.

7.I signed the contract with Britannia-IT in 2004 believing that the total cost for the Complete Learning Programme was 7,180. When I had my appointment with Matt Craig, I was given misleading information, through his failures to not fully disclose information regarding the total amount of course fees. If I was given correct information that the cost was £8,975 I would not have entered the contract with this company.

8. In addition I was given false information by the careers consultant Matt Craig to create a good false impression of the company. One of the main reason for joining Britannia Academy was he (Matt Craig) told me that the academy would be opening an additional office in Canary Wharf in 2005. Firstly the canary wharf location has a number of major companies including investment banks, secondly I live five minutes away from canary wharf. The irony is I still remember his blank facial expression when I told him I live very close to Canary Wharf . Now I know it was because he was lying.

9. It is completely unacceptable that a careers consultant who intentionally lied and gave misleading information concerning courses fees, company future expansion, companies clients, where students had their imagery job placements, in order to get me to sign the companies contract, have £8975 transferred into the company’s account and provide very inadequate training. I’m unsure if the sales consultant gains commission? they probably do.

10. I recently wrote to Barclays Bank plc believing I still could make a claim under section 75 of the Consumer credit act 1974. I received the response that I can not make any claim. Barclays Bank also claimed that there is no ‘debtor-creditor-supplier agreement’, between the bank and the training provider. Despite this I still believe that Barclays Bank should be made equal liable, as Britannia IT gave me one option and that was to use Barclays Bank Careers development loan.

11. In addition I believe that it would be greatly unfair to still charge a person £8000, in addition to my own losses of £1,975.00 when I have not received the service paid for initially financed from Barclays Bank. This I believe creates a significant imbalance between my self as a student, the training provider ( whom may have existing debts written-off after a period) and Barclays bank plc who will only gain more from the this situation.

12. In my opinion Britannia IT Training Limited is a company that should have never existed. I place the blame entirely on the directors of the company, but also on the Learning and skills council for not canceling Britannia IT CDL registration sooner. If the Learning and skills had a much stricter regulation for ‘Training providers’ hundreds of students would not be in this horrible situation.

13. Between 2005-2006 I wrote three letter to Britannia IT stating that the way they conduct themselves is actually illegal.

i) I was told that the price was £7,180 and not £ 8,975, therefore given a false price indication.

ii) “Section 20 of the Consumer Protection Act 1987 makes it a criminal offence for a person in the course of his business to give consumers a misleading price indication about goods, services, accommodation or facilities. It applies however you give the price indication—for example, in a TV or press advertisement, on a website, by email or text message, in a catalogue or leaflet, on notices, price tickets or shelf-edge marking in stores, or if you give it orally, for example on the telephone”.

iii) False information given almost about everything. Misrepresentation Act 1967

When you have been told something factual about goods/ services that made you decide to buy them or enter into the contract, but which turns out to be untrue, then they have been misrepresented to you. Whether lies are told intentionally or unintentionally, either way the contract could be set aside and money refunded.

iv) I deem section 4.4 of the terms and condition to be ‘unfair’ under the Unfair Terms in Consumer Contracts Regulations because as it solely benefits the company and not the student

v) (“Once a course or a programme of pre-set courses (for example, Cisco Master Track 2) has started it cannot be cancelled and you will forfeit you right to a refunded’)

vi) Contrary to the requirement of good faith Term 4.4 creates a significant imbalance in the parties’ rights under the contract, to the detriment of the student,. Taking in to context that is a training academy which is meant to provide training for students they seemed only to be interested in transferring money into their account. To refuse nearly £9000 for attending a CD-rom course costing £10 is not only unfair but a complete RIP-OFF!!

written off

 

I IN SUCH BAD DEBT BECAUSE OF THIS LOAN.

Hi

I'm in the same situation as you I only attended 3wks of the course and didnt like it. Now that they've been bankrupt I'm having to pay Barclays £8000.

 

Is there any way out of this..please help me! I'm in so much debt.

[Enron]

I'm new to here so hi.

 

I am having a nightmare with this bank. I took out a career development loan 4 years ago and believe i was mis sold this product as weel as the payment protection insurance. It was never explained to me excatly how the loan works and how much it would actually cost me.

 

I borrowed £9500, i got a settlemnt figure in June of £17500!!! When i contacted them they said that interest had been added on each day (£5 p/day) for the 4 year repayment hol - and then charged me £3000 on top for payment protection.

 

I am now unemployed and unable to pay the monthly paymnets - cannot claim on the insurance as not been in perm employment for 6 months prior to the claim - again not explained at the outset.

 

I have had numerous letters from Jamie O'neill at the customer care centre and a tearful converstaion with an Andrew someone who told me he "expected" me to know exactly how much debt i would be in when i took out the loan. Shocking!

 

It is in process with the ombudsman - i hope they take them down!

 

Since wednesday of this week i have had 11 phone calls - ranging from 8 in the am til 9 at night demanding payment - harrassment or what? I have explained EVERY single time that i am trying to deal with the situation and have given details of what has happened.

 

Anyone else ever had one of these loans and been gobsmacked at the cost (hidden)

 

Thanks

 

That sounds pretty bad, the fact that it is with the Ombudsman should be sufficient for Lloyds not to be hassling you.

 

11 phone calls in just over a week is excessive.

 

Therefore I would suggest sending the following letter, stating again that the matter is with the ombudsman (alter it to fit your situation):

 

http://www.consumeractiongroup.co.uk/forum/bank-templates-library/37006-harassment-telephone-response-letter.html

 

Also contact trading standards with reference to the calls that you have received.

[la2006]

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Edited August 15, 2008 by la2006
delete - seeking legal advice

[jayawor]

i was also affected by this situation and have still got to pay the loan back is there any way i can challenge this

[Tejito]

Anyone had there Career Development Loan agreement terminated?

 

I took out £8000 to do a course with James Thornton Group Ltd who have declared bankcruptcy and is this loan covered by the Consumer Credit Act 1974?

[KnightOfLondonia]

Hi,

enrolled on a course with Joskos in July 2006; took the first two weeks of the course but couldnt pass the exams. I took each exam twice and failed both times

Its now nearly 3 years on and they havent got in touch with me once to see how im doing? Is this normal? Do I have a case for this?

 

Thanks for any reply

 

Edit: as well as this, in terms of the bank asking for the money (Co Op Bank) what does formal recovery proceedings mean?