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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