Bad Broker Advice

[mas66]

I took out a secured loan of £23500 on a variable rate via a broker in December 2006.After a few years of the interest rates rising subsequently so did my payments, which is understandable. However after numerous interest rate reductions my payments have never been reduced by as little as 1p.

When i queried this with lender they informed me that my rate was not linked to Bank of England but to their own cost of borrowing. Something i knew nothing about. I contacted the Financial Ombudsman but they were unable to investigate as the loan was taken out pre April 2007.

I went back to the broker in March 2014 and they refunded me my broker fee of £ 2350 + £100 for my inconvenience. Do you think i have been mis-sold this loan?

[PlanB]

Re: Bad Broker Advice

It sounds as if your loan was on a standard variable rate not a tracker which means the lender has the freedom to raise the interest rate on a whim (if it says they can in the Ts & Cs) since it's not linked to BBR or LIBOR so they may have been basing their decisions on the SWAP rates. These were very bad deals.


The fact you were refunded the broker fee smacks of misselling otherwise why would they refund it? Was there PPI sold with this loan?


Who was/is the lender and which broker network sold you the product?


I assume the FOS refused to deal with your complaint because the product was sold to you more than six years before you made the complaint, however the FOS can still investigate complaints up to three years after you first became aware there was a problem regardless of when the loan started.


Give us a little more information so we can see if there is anything you can do about this. Are the loan repayments up-to-date or do you have any arrears?


Plan B x

[mas66]

Re: Bad Broker Advice

Hi Plan B


Thankyou for trying to help me.


No there was no PPI sold with loan

The lender is Swift Advances Ltd , think they are sub prime lender, not sure what that means though.

The broker was Friendly Loans( part of Think Loans & Morgages Ltd)

Unfortunately The Financial Ombudsman are unable to deal with my case as they can oy deal with products which are regulated by the Consumer credit act 1974 but only if the event took place after 6tg April 2007, so my loan is 4 montgs too early

I have tried to find a solicitor or firm who would take my case on a no win no fee basis but unfortunately couldn't find one as i am not in a position to take legal action myself.

I have £ 627.65 arrears but i have an agred payment pan of £256.09 for contractual monthly installment and £ 33.41 towards arrears

[PlanB]

Re: Bad Broker Advice

I'm not qualified to give legal advice but you may want to read up about Time Orders where you can ask the court to lengthen the term of the loan (which should reduce the monthly payments if it's a repayment product) and/or reduce or freeze the interest:


https://www.nationaldebtline.org/EW/...0agreement.pdf


This only applied to loans under £25k at the start (before 2008) which you say yours was.


At the moment you're focussing on the variable interest rate as a potential for mis-selling, but there could be other things such as a loan which runs until after your retirement age etc.


Your quarrel would be with the broker not the lender and from what you say they have already admitted liability by paying you a modest amount of compensation. Can you email me their compensation letter to see if they viewed your acceptance as a full and final settlement using planb@all-about-debt.co.uk. No need to blank anything out - it's all perfectly secure.


I can't find "Friendly Loans" on Google but Think Loans and Mortgages Ltd is still active.


Plan B x

[mas66]

Re: Bad Broker Advice

Yep I'll scan the letter tomorrow from work and email it over to you tomorrow. I 'm sure it doesn't mention that compensation was in full and final settlement. The loan has about 16 years left and as it stands at the minute i can receive my pension at 67 so thats within the loan period. At the minute i am looking to re-mortgage and add this loan to my mortgage repayments. I can afford to pay the loan so wouldnt want it carrying on any longer than i have to. Think loans are also part of Ocean Mortgages, Carlton House,Vere Road, Salford. I'm sure I was never given any key facts and definitely didnt get a choice of other loans or products. (Learnt all these requirements over the last few years)

[mas66]

Re: Bad Broker Advice

Hi Plan B

Did you receive my email regarding the letter from my broker?

Thanks

[PlanB]

Re: Bad Broker Advice

No I haven't received it yet.

Would you be kind enough to re-send in case my email is having problems.

Plan B x

[mas66]

Re: Bad Broker Advice

Just re-sent it,let me know if you don't receive it and i'll send from another email

Thanks

[PlanB]

Re: Bad Broker Advice

I've got it and I got the previous one which went into my Junk Folder as "Suspected Spam" so I deleted it (Oooops). It's always best to put your AAD username in the subject bar.


I'll read the Ocean Finance letter and then post my thoughts.


Plan B x

[mas66]

Re: Bad Broker Advice

Hi Plan B

Have you managed to read through my letter from Ocean Finance yet?

Thanks

[mas66]

Re: Bad Broker Advice

Hi Plan B

Any update on your thoughts on the letter I sent you?

Kind Regards

[marypoppins]

Re: Bad Broker Advice

It's unusual for PlanB not to respond so there may still be issues with getting your emails.

Try sending a message to Niddy to check for you.

[mas66]

Re: Bad Broker Advice

Thanks Marypopins, i'm hoping no news is going to be good news. I know Plan B received the letter so I'll leave it for a few more days and see if she posts her thoughts

[Never-In-Doubt]

Re: Bad Broker Advice

I have moved posts to this new thread as the first 5 posts were previously tester posts (???)

I have also PM'd mas66 - I am happy to have a word with our solicitor for you. See my PM

Niddy

[mas66]

Re: Bad Broker Advice

Thanks Niddy for your help but Plan B has contacted me earlier today and she is going to speak with solicitor