Bizarre APR from (not very) Inteligent Finance

Applied online for a loan with IF tonight - loan was for 13K. Was approved so rang up to confirm details. Was told that the payments would be about

370 over 48 months at APR of 6.4%. Queried it as the website quoted me 306.62 - guy told me that the 370 included the payment protection insurance that I had selected when I applied. I informed the guy that I specifically selected to not having the payment protection insurance as I don't want to pay it because it cost too much and I was fully aware that I was still responsible for paying loan even if I was made redundant/long term sick, etc. The guy then said my revised payments would be 310.57 per month which I just murmured OK to at the time thinking it sounded pretty close to the original 306.62 I was previously quoted on the website. Now I've thought about it - I've gone back the website and it appears that my 6.4% loan is now being offered to me at 7.1%, which appears to be because I've said no to taking out their rip-off payment protection insurance. What a farce!

And here is something I find quite scary - the guy insisted on knowing where I'd be in two days time because they wanted to send me around a courier to deliver the cheque. I asked if I'd get the paperwork to sign and send back first and he said no. Apparently, the courier turns up with the loan agreement to sign, hands it over so it can be read and then you have to hand it back within 15 minutes all signed, at which point the courier passes the loan cheque over. I fail to see how any reasonable person can read the full terms and conditions of a loan agreement within 15 minutes, especially as most of the time, loan agreements are written in the tiniest detail and with sufficient legalese that it would confuse the most literate.

Reply to
Layezee
Loading thread data ...

redundant/long term

Probably not the reason. I was approved yesterday for a loan at 6.4% with no payment protection insurance. (Pity, as their web site seems to be offering a rate of 6.1% today..... )

Again, not so. The courier service is optional. You can have all documents sent to you by snail mail instead if you prefer. You just won't get the dosh until you have returned the signed documents.

Reply to
Sid B

Just to add to that, such a service normally adds around 45 to the cost of the loan which is collected 3 months after the start date.

Paul

Reply to
Paul Kwazakki

If you're signing it at home, then I'd imagine (I'd check, though) that the Distance Selling regulations apply and you have a week or so to read it carefully, and cancel if you so chose. Perhaps this doesn't apply to loans though.

Reply to
mrfredbloggs

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.