First loan repayment taken on day of loan being payed?

Question

Hi,
I recently took out a loan with a major high street bank

They payed the loan amount into my account and on the same day took the first payment out.

It says on my contract "The loan with interest will be repayable as below:-
Commencing 1 month(s) after the loan is drawn, at intervals of 1 month y 11 payments of xxxx and a final payment of xxxx."

I have rung my manager regarding this and have recieved no response. It always goes to answer phone and when i leave a message i don't get a call back.

Also, if i payed back 1 installment at the same time as getting the loan, surely that basically means the loan was for a lesser amount, so the interest will be incorrect?

Any advice....i'm going on holiday shortley and now can't afford basic spending money :(

Ed m - you are unclear

Do you mean a repyment plan such as the one in quotations? if so this is a direct quote from the contract.

If you mean such as what the bank has done...then thats my point

A point for you to considor, I am in england, you are in the US. Financial customs may well be a little different.

Thankyou for your advice on taking papers in. I think that will be my course of action.

Lastly, whats the point in being abusive to someone for miss spelling 2/3 words?

Its not an academic essay, its a quick question on the net.

Answer 1

Ok, lets say they loaned you 1200 and put that into your account and then immediately took out 100. If that was the case, then they only loaned you 1100. They should not have charged any interest on the 100 they took out. Of course, they may have and this whole thing is just another scam that lenders are using today. If that is the case then they will probably point to a contract and say that you had agreed to it. I am not too sure of how legal that would be.

They can squeeze a few extra dollars (or whatever) out of you this way. You will be paying interest on money you never actually borrowed.

Answer 2

"Lastly, whats the point in being abusive to someone for miss spelling 2/3 words?"

What's the point? Glad you asked. Spelling is generally indicative of both education and intelligence. On top of that, people who don't bother to check spelling when they write things show off the fact that they don't care about the image they project and are too damn lazy on top of it. If you want to project ignorance, fine...but don't be surprised when you get called on it.

Answer 3

before i would attempt to bad mouth the bank - i would have to read all of the fine print. i have never heard of a loan with a payment plan such as you describe. instead of calling i would go in person and take your papers with you and have them explain in detail exactly what kind of payment plan you have gotten in to.

also i would practice my english and learn to use spell check.