Be careful about taking out a loan with One Direct

Brendan Burgess

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Source: article by Margaret E Ward in Sunday Times 7 September

One Direct advertises the lowest rate for personal loans at 7.75% APR, but they give this rate to customers with the top credit rating. Other customers get charged as high as 21%.

The full range of rates is not mentioned on the website or mentioned in its ads.

An IFSRA spokeswoman said:
If an advertised APR is not offered to everyone, it must be made clear in advertising"
The regulator said it might seek clarification from insitutions that fail to do this bu it would not comment on individual case
 
And Also

I don't know if this is the common practice, but if you take out payment protection with One Direct they Loan you the premiums for the full duration of the loan.

So, instead of paying a premium to insure yourself you pay the premium plus interest.

The also don't provide a statement. Not even an annual statement.

If you cancel payment protection, they rebate some money back onto your balance, but they can't tell you where they got the figure out of.

They are actually a front for whichever real bank is giving you the loan, Bank of Scotland until recently. This means that even though the staff are very friendly, they actually know very little, every enquiry has to be passed on the the behind the scenes bank.

So even though they advertise that they are open until 8.00, if you ring after 5.00 they can't help you unless it's a very simple question. Getting a settlement figure for example doesn't seem to be possible after 5.

If you do get a loan with them, get a number of the bank behind the scenes and deal with them directly.

-Rd
 
Re: And Also

I just happened to be looking at the Best Buys list and noticed the amazingly low APR. I then remember seeing an advertisement on the TV where they say that the rate depends on your status.

Maybe ClubMan/Sunday Tribune should update their list to reflect this caveat.
 
Re: And Also

Maybe ClubMan/Sunday Tribune should update their list to reflect this caveat.

Yes - Brendan has drawn my attention to this and also flagged it with Niall Brady of the Sunday Tribune and we will sort out the best buys list ASAP. In the meantime, let me reiterate that the best buys list is simply a summary for guidance purposes only but people should still shop around, haggle and double check prices/details/terms & conditions before committing to any agreement.
 
..

Hi,

I recently phoned One Direct to make enquiry about their "cheap" loans.

One Direct confirmed that GE Capital are underwritting the loans on offer & that they decide the rate.

The One Direct person I spoke with was not willing to tell me how they decided what rate to charge or what rate I might be charged, when I offered to give her a summary of my personal financial position etc. Basically, she said they can charge what they like & the customer will not know until the paperwork is sent out !

.. I told her I will never do business under these circumstances & asked to be removed from their mailing list immediately.




On the slightly different note of payment protection policies - Bank of Ireland previously charged a friend of mine for 5-years payment protection on Day 1 and added it all to the loan.

Its obviously a policy decision taken by some of the Banks in an attempt to make further profits by generating interest on the total premiums for the 5-years, charged to the account on Day 1

Eventually, I hastled my friend enough that he went into the Bank and lifted them out of it - he cancelled the protection plan, demanded interst be re-credited to his loan account, for the remainder of the period & then, repaid the loan & closed the account.

He also closed his current account & a savings account held with them and told them to go rip someoe else off !

.... Power to the people :)
 
Re: ..

...he cancelled the protection plan, demanded interst be re-credited to his loan account, for the remainder of the period & then, repaid the loan & closed the account.

Garrettod,
I also agree that these payment protection schemes are very bad value.
I took a loan out with AIB a few years back and told them that I did not want the payment protection, but then the paperwork was sent out there I was set up to pay this extra charge.
At least I was able to sort it out before one payment was made.
You have to be so careful when dealing with banks/lenders.

S
 
Re: ..

>but then the paperwork was sent out there I was set up to
>pay this extra charge.

I think this might be more common than people think.
I've finally given up on trying to live without a credit card, so I avoided last years €40 but now I have to get one.

I gave details over the phone and explicitly said TWICE that I didn't want payment protection. When the paperwork arrived it included a section saying I'd agreed to payment protection, and a place to sign. The letter said I MUST fill in this section.

Joe or Josephine Soap could interpret this as meaning they would only give me a card if I signed up for payment protection.

The words Practice and Sharp spring to mind in no particular order.

-Rd
 
...

Hi,

I am very rusty on this, but I think there is something in the Consumer Credit legislation, preventing the offer of loans etc, conditional on one taking our insurance (maybe just through the loan provider ?)

Anyway, I'd just draw a line through the lot, initial it, clearly write on the side that this is not required & return it to the credit card provider.

If your in the market for a new credit card, I suggest you ensure it's one with a permanently "low" rate (well, as low as your likely to see in Rip Off Ireland - big thanks to Charlie McCreevey for making life easier for customers to move, with this €40 tax btw).

There are a couple of cards in the marketplace, offering decent(ish) reward schemes etc - might be worth considering if your going to have a lot of transactions & clear the balance in full & on time, each month. Check out Amex Blue & Tesco Visa for a start.

As for that continued rubbish they send you in the post trying to sell you credit card insurance etc - just mail the blank forms back to them, without paying the postage ... it costs them and sooner or later, they might just get the message ;)

regards

G>
 
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