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Exorbitant fees on personal loan.

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  • 02-05-2014 6:14pm
    #1
    derekdooom
    Registered Users Posts: 19 ✭


    Hello

    I was just wondering if I could get some advice on this?

    I secured a personal loan from BOI around six years ago as a student. After working
    and paying back my loan for some time I relocated to the UK for postgraduate study and allowed my account to go into arrears. 

    Shortly afterwards I was contacted by BOI and agreed to start making regular payments on my debt, which I have continued to do, except during periods where I was unemployed or underemployed. 

    Two years ago I took up new employment and agreed a minimum repayment with the bank which I deposit every month by visiting my local branch. I continued to do this until formally 'restructuring' my loan in branch this month.

    Although I have had many dealings with BOI's credit department over the past several years it was never really explained to me that there was a difference between the arrangement I had made to make regular repayments in cash and the formal 'restructuring' of my loan. 

    This has become an issue for me as - having recently reviewed my loan account statements for the last year - it has come to my attention that I have paid more than a quarter of the principle on my loan in 'interest surcharges' in the past year alone (i.e. I have paid around €1,000 on a €4,000 debt), with the effect that my debt has not really been reduced in any meaningful way in the last two years. 

    This has left a really bad taste in my mouth as  - to me at least - these charges seem extremely excessive. 

    As mentioned, my loan has been restructured now but the interest and/or penalties I have paid in the last year (and perhaps in previous years) has rendered all of my efforts to pay down my debt pointless.

    Any advice would be most welcome.

    Thanks


Comments

  • Options
    #2
    glic71rods46t0
    Closed Accounts Posts: 1,074 ✭✭✭glic71rods46t0


    You didn't pay your loan so interest and penalties were added. You make minimum payments which only clear interest and interest arrears.
    I don't think you can claim any high moral ground here. The bank is right to penalise u for your behaviour. You are only paying for the interest you should have been paying when you ignored the loan. My advice is to up your payment to clear principal and interest over a reasonable time


  • Options
    #3
    Bank of Ireland: Sarah
    Closed Accounts Posts: 1,640 ✭✭✭Bank of Ireland: Sarah


    Hi derekdoom,

    Thank you for contacting us on Boards.

    We are sorry to hear you are unhappy with the fees on your loan. However, as this would be very much account specific, it would be best to contact your branch to discuss your loan in detail with a customer advisor. 
    A representative will be happy to arrange a meeting with you where they can explain to you the fees associated with your personal loan and what would be the best repayment option for you.

    If you need the contact details for your branch, you can find them here

    Please let us know if you need help with any other query. 

    Thanks,
    Sarah


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