Shopping for a Loan (Act II)

war.jpgSo, had our first meeting with our first bank, which, for legal reasons, will be code named “NW.” I have been banking with “NW” for nearly 8 years. This meeting was actually not my idea but Jan’s*. She works for the bank, and she called me up in a panic last week saying that hundreds of pounds worth of charges were about to be slapped on to my account because I had exceeded my overdraft.

*Yes, of course, the name has been changed.

“Bloody Hell! How did this happen, and what can I do about it,” I cried as I logged onto my account to check what the Sam Hill was going on. Everything looked fine, but Jan assured me that the check showing cleared on online banking had not, in fact, cleared and that the impending direct debits were going to seriously f@ck me up.

Not to worry, Jan was on the case. I could take out a consolidation loan…could I come in today? Anyway, after some faffing about on my part, I went down to the bank with PJ in tow and was subjected to the most hard core sales techniques that I have ever witnessed coming from a small young woman. This was bad enough, however, she could not explain APR to me and why 9.9% APR was more expensive than 9.9% interest. She also shamelessly tried to sell us on the insurance, which is a whopping 33 quid a month…for 5 years, which works out to be…well, hell, you do the math. In order for the interest rate to be lower than an average credit card rate, I would also have to borrow 5000 quid (no matter that I don’t need that much). No problem! Says Jan. Put it in your ISA. Yeah, right…like anybody has that kind of will power.

After feeling like we’d been roughed up, we managed to make our escape with Jan promising to ring us the next day to follow up, which she never did.

The next bank we’re checking out is code named simply “B.” They promise to have a 7.4% loan, and maybe they can explain APR to us as well. This is fun, and, damn, I do feel as if I am getting a free education.

4 Comments so far

  1. sean (unregistered) on August 30th, 2007 @ 4:50 pm

    You should try shopping online, try Martin Lewis’ site,

    Loans from main street retail banks are not a smart move. It would be cheaper to get a 0% card and stick it all on there then move it from one card to another as the offer period expires. Yes they now charge anti tart fees, but the 0% is alot lower than the rates you’ve been told. Good luck.


  2. sean (unregistered) on August 30th, 2007 @ 4:57 pm
  3. Daneeta Loretta Saft (unregistered) on August 30th, 2007 @ 8:48 pm

    Oh my god. That Money Saving Expert is awesome! Cheers for that.

  4. sean (unregistered) on August 31st, 2007 @ 10:03 am

    my pleasure.

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