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Loan - Interest Rate Increase


paulcaley
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Dear All,

 

You help is much appreciated with a problem I have; I have a loan with first national (GE Money) variable rate, in the past they have always written to me to say the rate was changing and payments will change accordingly. About 2 years ago they offered me a better rate than we were on and we signed up. Since then I have had no letters from to say the interest rate on the account has gone up etc. I have phoned them today and the rate is 1.5% higher than what it was.

 

There expaination for this was because my monthly hasnt changed they dont need to write to me, although the interest on a monthly basis has gone up and therefore the term has been extended, they still dont need to write to me to tell me, dont they?

 

Surely if it is a variable rate the payments should also go up?

 

Any help much appreciated

 

Paul

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