@asklloydsbank Why do i pay different rates each month on my Unsecured loan ?

[ejt72]

My partner took out an unsecured loan with Lloyds, in Jan 2011.

It was for £5000, and over 36 month's, so he's repaying monthly instalments of £174.00, and Interest rate is 15.50 %

 

He recieved a letter/statement today, regarding an update on repayments which is a tad confusing !?

 

We cant understand why, he is being charged different rates each month ?

 

eg. £44.00 then £59.00 then £62 this is debited from his account, in addition to the normal £174 repayment for the loan.

We understand he has to pay interest, but this would mean he has paid £650 ??

 

So all in all, he would be paying £1900 in Interest alone ! is this correct ??

 

I have read through the small print and it does state that they can vary the Interest/ Charge amounts, and notify you within 30 days.

He has not recieved any letters of notification , and on the customer agreement form, the customer advisor has ticked and crossed boxe's, to say he understood info that was explained regarding the loan, repayments etc...

 

He said he didnt do anything except sign the form

 

He cant remember being advised on anything to do with Rates/ Charges ??

So basically, why is he paying different rates/charges each month ??

Edited January 9, 2012 by citizenB
formatted for easier reading.. taken out the bold highlight as well

[dx100uk]

thei loan is one std payment the same each month

not ppi is it?

 

dx

[ejt72]

No not PPI, just std payment each month, Thank's

[citizenB]

can you confirm that there are two payments going out each month.. the regular £174.00 plus the amount that is varyng from month to month.

 

Any chance you can scan the document in for us.. remove any personal information before posting up. Follow the instructions below for posting pdfs.

 

D

x100 – Instructions on uploading pdfs

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