Beware Banks Bearing Gifts ( loans )

[poter]

Although not strictly a sailing subject, I am sure that most yachties need to borrow some cash now and then.

Beware!

I was in need of some 'toys' cash so I went to a well " respected" ( if any are! ) high street bank ( lloyds ) and took out a loan with payment protection.
At the time I was more interested in getting to the chandlers than reviewing all the loan details and small print.
It turns out that the so called loan protection insurance is 28.25% ( yes nearly a third ) of the original loan value.
This protection insurance is available from the some net brokers at just under 1.5%
I have since had a few words with the offending bank and they are cancelling the insurance.

So yachties beware of banks bearing gifts and check all the loan details.


poter

 

[steve_cronin]

And it may be invalid if...

.. you are self-employed. This situation has been under investigation by the banking ombudsman for a few months now which is why banks have softened their previously aggressive approach to selling it. NEVER buy anything from a lender tied to one source.

"Independent Advice is the Best Advice" as the CA & BBC continually tell us.

Steve Cronin

 

[cngarrod]

Took a loan out last year to buy the boat... bank told me i had to take the insurance with it... (mind you i wanted the boat... and to be fair i was more interested in getting the damn money!)

Had a look at the rate after reading your post, it equates to 21% of the loan value over a 5 year period. All added up front! Took it out with the intention of paying it off sooner anywa (will be done in about 18 months all told)

Called them today to see if i could cancel the insurance (just paid a lump sum off the balance) - not possible to cancel the insurance, only option is to take a new loan, without insurance to pay off the first loan!

Sounds like the same con mortgage lenders were doing a few years ago with house and contents insurance... this this was banned or similar a couple of years ago i believe?

Cheers,

Craig.

 

[Guest]

Bit contentious there Steve!!

So what exactly are you saying here Steve? The ONLY reputable Financial Advisers are independent???

How many examples of poor advice provided by IFA's would you like?

At the end of the day, there are good and bad in both camps, and an IFA or Tied tag does not necessarily make a good or bad adviser!!

Unless you know different...

www.boatsyachtsmarinas.com

 

[iangrant]

Re: Bit contentious there Steve!!

Wise man he knows: Bank only lend umberella when it stops raining!!

 

[Guest]

Wise man also knows..

...that several Banks also offer Independent Financial Advice alongside Tied advice!
Beggars the question what does Independent REALLY mean??

www.boatsyachtsmarinas.com

 

[robp]

Re: Wise man also knows..

I've been asking this question for several years now. Where actually DO you go for true I.F.A? Accountants, Lawyers, Banks, all seem to have some product to offer.

 

[jonjo]

I have worked in the insurance department of two well-known high street banks. In both cases personal loan protection was a highly profitable part of their business.

 

[steve_cronin]

Didn\'t mention advisers...

...only the advice!

Steve Cronin

 

[steve_cronin]

See:- [url]http://www.ifap.org.uk/[/url] nm

..

 

[robp]

Re: See:- [url]http://www.ifap.org.uk/[/url] nm

Thanks for that Steve. It's an interesting site and actually will be useful. However, in my search criteria, I asked for IFA's on a fee paying only basis. All the ones that came up show payment on a fee/commission basis. My (possibly naive) question is, how can that be truly independent?