PTSB Car Loan - now looking for additional payments at end of term

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Glen25

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My sister has a loan with PTSB which is due to finish in September 2012. She got a letter during the week to say an additional €800 (approx) is owed on the loan for one of two reasons:

1. She may have missed payments over the course of the loan
2. Changes in interest rates were not applied to the loan over the course of the 5 years.

She has never missed a payment so presumably it is because of the interest rate changes. They advised that the monthly payments will continue for a further 4 months to pay the €800.

I've never heard of this before. Any short term loans that I have taken out never had a payment needed at the end to cover interest rate increases that weren't applied to a loan account.

Has anyone seen anything like this before?
Thanks,
Glen.
 
Hi Glen25 that happened me and to my daughter,I had to pay an extra 680 euros and my daughter owes an extra 400 euros. I went in to the bank to complain and was basically told that they display their interest rate rises in the media and in their branches
I said that if i was notified of the increase i would have paid more to cover the term . I was fuming with them but the girl in the branch said that if i made a big deal of it they said they would not give me another loan. I said don't worry i would never borrow for them again
 
Glen25 said:
I've never heard of this before. Any short term loans that I have taken out never had a payment needed at the end to cover interest rate increases that weren't applied to a loan account.

Has anyone seen anything like this before?
Thanks,
Glen.
Click to expand...

Yes - from AIBs website :

"An AIB variable interest rate loan is a personal loan which the interest rate charged on the outstanding balance varies as market interest rates change. However, your monthly repayments usually stay the same, so if interest rates rise during the loan term, you will have to make some extra payments at the end of the term. If the rate on your loan falls, you may pay off your loan earlier."
 
Thanks for all the replies. I was just thinking about it and maybe I had fixed rate loans previously.. I certainly never remember paying a loan off early when interest rates were dropping!
At least I know now that she doesn't have much choice but to pay up. Thanks again for the replies everyone.
 
PTSB car loan

Oh it seems that the same thing has happened to me. I took a loan out in 2007 for 15,000 - its due to end at the end of Nov 2012, just got a letter today, saying that i have to pay an addition 1,554 euro due to a shortfall. Well let me tell you they got the wrong person to mess with. I paid over 80% of my loan, I plan on making the rest of my 4 installments left on the loan, and that is it. they asked for an addition 6 installment after November 2012. The letter I GOT was so so rude, I have made a complaint to my branch and I am meeting with the manager on Wednesday I have also sent an email and spoke to their customer relations department. The woman in the Blanch branch was giving me misleading information I was furious with her, she saw it damn well. I have had loans with AIB, BOI also my mortgage with HFC and never had I seen this happen. I plan on going to the courts and to the FS Ombudsman and I made sure to write this in the complaint letter. I was just made redundant a month ago, they probably thought that the 5k redundancy is my new pay check, I wish! I shall not let them get away with this, THEY SEEM to be charging interest upon interest even though I have never ever been a second late on my loan. I clearly advised them that after the 30th of November I shall not be making any more payments. and I will not give up. I am transferring all my DD's onto a different account, my mortgage and canx some DD's already today. I cannot believe that they have the audacity to do this, and who gives them the right? I have read all the legal nonsense at the bottom, it seems that they made a mistake, the forgot to send me a breakdown, so I hope to get away without paying this ridiculous unfounded sum of money.

Hardly wait for Wednesday.
 
Hi yana29 best of luck with it hope you get somewhere with it i think i gave in too easily with mine
is this a ptsb thing because i never heard of it happening to any other bank customers .
 
Not sure if this is a PTSB issue, reading other forums, seems that its the NORM, doubt it very much...people on other forums are trying to "convince" me that I have no legal stance, I beg to differ. seems that the sister of the OP got the letter exactly 4 months prior to the loan ending, same issue with me, how convenient is this?...never will I be taking out a loan...
 
Hi yana29 how did your meeting with the bank go today did you get the same speel i got re interest rate increases displayed on branch windows and the media etc.
 
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