Phone Call Transcript
Conversation taken with Agent and Senior Underwriter from Direct Finance UK Ltd
Ten minutes and 31 seconds taken at 2:45pm Tuesday 25th August 2009
ME: Yes Please
Answering Agent: Ok bear with me I will just pass you on the right department
ME: Thank you
Assessment Agent: Hello
ME: Hello
Assessment Agent: Yes Sir
ME: Yeah I am looking for a loan
Assessment Agent: How much are you looking for Sir? (Should the agent have advised at this point they are a loan broker or had some type of script?)
ME: Err £15,000, You do the loans yeah? (Asking does your company do the loans?) )(Also this question gives the opportunity to the agent to make it clear that they are in-fact a loan broker and I should have been advised of this fact clearly but was not)
Assessment Agent: Yes (this is totally incorrect and forms misrepresentation under the 1967 act and also the Unfair Contract Terms Act 1977 clauses of law listed in law reviews (this is perfect indicator that I am now dealing with a Loan or Finance company. Another strong indicator directly affecting this situation is the name of the company “Direct Finance UK Ltd” (The agent should have now informed me of their position as a broker and any loan is obtained through their panel of lenders and that they do not do the loans directly (I would have stated that by this time my mind is now set that I am dealing with an actual loan company/finance company who if approved was going to give me a loan)
ME: Ok (confirming that I now accept the fact that Direct Finance UK Ltd are in fact a lender there is nothing from me understanding anything other and there is no need for any more questions aimed in examining this direction)
Assessment Agent: £15,000 (Confirmed the amount of the loan)
ME: Yeah please Yes (Stating exactly what was required)
Assessment Agent: that’s nice Err for how long sir? (Requiring the time frame for repayment of the loan)
ME: Err I don’t know I wanna try and get err You tell me what you charge on your APRs ( I wanted to confirm how much interest I would be charged with all associated costs and any possible arrangement fees. The APR from a loan company should cover this in their total cost of credit)
Assessment Agent: The minimum time is twelve months and the maximum time is 15 years ( This was not what I asking I need to know the true cost of the loan the APR gives me the full true calculation and can be double checked using calculators on the internet such as www.moneysavingexpert.com )
ME: Yeah It would probably be between 5 and 7 years but I am not sure it depends on. What’s your APR you charge you know? (Again I need to obtain the rates any loan company should quote the APR for customer repayments so that it can be ascertained the total charge for credit as depicted in the Consumer Credit Act 1974 paragraph 20 (1) which reads The Secretary of State shall make regulations containing such provisions as appear to him appropriate for determining the true cost to the debtor of the credit provided or to be provided under an actual or prospective consumer credit agreement (the ” total charge for credit”), and regulations so made shall prescribe—
(a) what items are to be treated as entering into the total charge for credit, and how
their amount is to be ascertained;
(b) the method of calculating the rate of the total charge for credit.
(2) Regulations under subsection (1) may provide for the whole or part of the amount
payable by the debtor or his relative under any linked transaction to be included in the
total charge for credit, whether or not the creditor is a party to the transaction or
derives benefit from it.)
Assessment Agent: If you are taking £15,000 for 84 months, that’s nice. It is £244.26 (At least the agent has now given the loan amount against the amount of months required and an exact repayment figure)
ME: And what’s the APR on that?( Again asking for the exact calculation)
Assessment Agent: Pardon Sir? (wouldn’t asking for an APR be a standard question that any potential client/customer ask?
ME: What’s the APR on that? Again I had to ask for the APR a requirement under the consumer credit act 1974 and also under FSA and OFT guidelines for any type of credit and a cross reference to check the total amount for credit under the Consumer Credit Act 1974 Direct Finance UK Ltd consumer credit licence is number 585795 and data protection number is Z124212
Assessment Agent: It shows 9.7 (Now we have the exact APR given on this type of loan I can now do the required calculations to determine the total charge for credit and the possibility that I could afford to pay back the loan in a shorter period of time)
ME: 9.7 yeah, (Five years would be good then yeah Demonstrating my ability to pay back the loan in a shorter period of time)
Assessment Agent: 5 years? (Confirmed the agent now knows that I wish to pay the loan back in a shorter period of time based upon the exact APR quotation)
ME: Yeah (confirmed I would like the loan over a shorter period of time as the payments should still be manageable based upon the APR)
Assessment Agent: That’s nice, for 5 years and what’s the purpose of the loan sir? (Shouldn’t this guy be updating me as to the monthly payments that I should be making)
ME: It’s to purchase a car ( I am purchasing is a Mercedes valued at £20,000 I have a trade in at a value of £3000 and £2000 in cash as a deposit so a quarter of the cost of my new car is already covered)
Assessment Agent: And for how for five years that’ right? (The agent now has confirmed it needs to be based over 5 years. One possible option for me is to take the loan over the 7 year period as quoted and then make the payments based on the 5 year repayment)
ME: Yeah (Three to five years are pretty typical for any car credit the only reason why I would like that time frame)
Assessment Agent: And what’s your date of birth? (Confirming my date of birth for both the loan application and for DPA checks following questions will cover this area)
ME: xx xx xxxx
Assessment Agent: xx xx
ME: xxxx
Assessment Agent: xx and your marital status single or married are you?
ME: Married me
Assessment Agent: Any dependant children under 18 with you?
ME: Yeah One
Assessment Agent: One
Assessment Agent: And what’s your first name?
ME: xxxxxxx
Assessment Agent: x-x-x-x-x-x-x-x
ME: No x-x
Assessment Agent: x-x-x-x-x-x-x-x
ME: Yeah
Assessment Agent: And last name please?
ME: xxxxx
Assessment Agent: xxxxxx
ME: Yeah x-x-x-x-x
Assessment Agent: That’s nice and the best number to contact you sir
ME: xxxxxxxxxx
Assessment Agent: And could you confirm it again that’s xxx
ME: It’s xxx
Assessment Agent: Yeah triple or double
ME: pardon?
Assessment Agent: Its double 7 or triple 7
ME: Triple, three xxxx
Assessment Agent: That’s nice
ME: Yeah xxx
Assessment Agent: xxx
ME: xxxx
Assessment Agent: xxxx thank you very much
ME: Your Welcome
Assessment Agent: And your post code please
ME: xx
Assessment Agent: xx
ME:xx
Assessment Agent: xx
ME: xxx
Assessment Agent: xxxx
ME: Yep
Assessment Agent: And the house number?
ME: Its number xxx
Assessment Agent: Number xxx, It’s xxx?
ME: Yep, Yep you got it
Assessment Agent: How long have you in this address sir
ME: Pardon
Assessment Agent: How long have you been with this address?
ME: 3 Years
Assessment Agent: 3 Years now, Are you council tenant Home owner or live
ME: No its private tenancy
Assessment Agent: How much is the rent
ME: Err £500 per month
Assessment Agent: £500 a month
Assessment Agent: And your employment Status? Are you full or part time employed?
ME: Full time employed
Assessment Agent: The name of the employer please where do you work
ME: xxxxxxxxxxxxxxxxxxxxxx
Assessment Agent: And how do you spell it sir
ME: x-x-x-x
Assessment Agent: Yeah
ME: xxxxxxxxxx
Assessment Agent: That’s xxxxxxxxxx
ME: xxxxxxxxxxx
Assessment Agent: And how long have you being with this job sir
ME: With that employer twelve years
Assessment Agent: 12 years
ME: Yes, It was a different name company before but it’s the same company really
Assessment Agent: Thats nice and how much is your monthly income?
ME: The gross or net?
Assessment Agent: Net
ME: Net £2,200
Assessment Agent: £2,200 a month?
ME: Yeah
Assessment Agent: Do you hold a bank account at the moment? (This is a standardized question for setting up the repayment of any loan
ME: O Yeah
Assessment Agent: Who do you bank with sir?
ME: Halifax
Assessment Agent: Its current account, business or savings?
ME: Yeah it’s a current account (Confirmed the type of account that I have and direct debit repayments or card payments could be made on the loan)
Assessment Agent: And how long have you been with Halifax
ME: Err about 3 years , just over 3 years (an approximate answer as I am not quite sure)
Assessment Agent: That’s nice and how do you appear on your account Mr? (Now doing some part of a banking check)
ME: xxxxxxx
Assessment Agent: xxxx
ME: xxxxxxxx
Assessment Agent: That’s xxxxxxxxxxxxx
ME: Yeah that correct yes (Confirmed as this seems to be very important to the agent in question)
Assessment Agent: And long you been with Halifax?
ME: About just over 3 years (Again an approximate time frame only as I do not remember the exact time frame)
Assessment Agent: That’s nice Any Loans before this time? (Agent referring to any loans before the approximate three years of opening my bank account with Halifax.
ME: Err no
Assessment Agent: Any credit cards or store cards? ( I am also assuming that these are being referred to before opening my Halifax account)
ME: Er no
Assessment Agent: That’s it thank you for completing the application Mr xxxxxxxxxx I’m passing your call to my senior underwriter bear with me for twenty seconds ( The application is now complete and we are now moving on to the Senior underwriter Definition: Fees charged for evaluating your riskiness as a borrower. In the underwriting process, your lender decides whether or not they think you’ll repay your loan as agreed. They look at your credit, debt to income ratios, and more A person of above average intelligence would believe that the senior underwriter is going to do all the automated checks that ascertain his credit worthiness, ability to repay the loan and then to charge an underwriting fee for the formation of any legal agreement in relation to the loan going forward also based on the this type of information I can only assume approval is exactly that approval of the loan.
ME: Ok
Assessment Agent: They will talk to you about your loan Bear with me for 10 seconds (Clearly indicating the reference to the loan and nothing else)
ME: Ok (Happy that this is moving forward to conclusion)
ME: Cough Excuse me
Break in Call (Transfer to Senior Underwriter)
Senior Underwriter: Hello is that xxxxxxxxxxxx? (At least she is confirming who I am for data protection its highly likely this senior underwriter will stick to questions which secure my personal data in-line with the Data Protection Act 1998)
ME: Yes it is
Senior Underwriter: Hi its xxxxxxx Direct Finance Senior Underwriter. For Data protection could you confirm your date of birth please? (She has now confirmed herself as a Senior Underwriter any decision by her will form the agreement upon the contract)
ME: xxxxxxxxxx
Senior Underwriter: And the first line of your address?
ME: xxxxxxxxxx
Senior Underwriter: And just the post code please?
ME: xxxx xxxx (All data protection questions are now complete)
Senior Underwriter: Congratulations based on the information you have provided , you have been accepted, (as soon as I heard this I am now happy and my mind is now set that I am going to get the loan as required) you have been accepted as a client of Direct Finance (either thing client can refer to an open ended situation I can only see this as a positive situation as I am now a client of a loan company called Direct Finance UK Ltd)
ME: Cool Thank You
Senior Underwriter: The Example rate I have in-front of me shows that if you borrow £15,000 over 60 months it will be £314.17 per month (what is an example rate when you have already been confirmed the rate of 9.7% APR?)
ME: Yes he has already given me the rate ok (Referring to the first agent who gave a figure of 9.7% APR . the amount of the seen as an example can be incorrect because it was quoted as an example using a calculator to figure out the repayments it would show a payment of £316.00 per month if this is not the case and £314.17 is the payment this can only show that the £49.99 fee is included in the total amount for credit but even including that shows the calculations as inaccurate, Because of the inaccuracy the credit agreement written between xxxxxxx xxxxx and Direct Finance UK Ltd would breach the prescribed terms of the 1974 Consumer Credit
Senior Underwriter: Sorry? (Obviously not sure what I meant)
ME: The Guy I spoke to already gave me the rate anyway (As quoted 9.7% and I am happy with that APR)
Senior Underwriter: The person you just spoke to now? (She is referring to the agent I spoke to at a guess)
ME: Yeah ,yeah, he gave me the rate (Confirming that I do not need an example rate as it was already confirmed as 9.7% based on the information provided and also the Senior Underwriters Checks)
Senior Underwriter: Alright. (Confirming that this is accurate and the Senior Underwriter is happy to go ahead with the situation based on the quoted APR of 9.7%)
ME: But I’m going to do it over 5 years ok? (Confirming that I would like the loan over the shorter period of time)
ME: Hello (Had to confirm if the Senior Underwriter was still on the phone, She must have been checking with her agent the confirmed rate of 9.7% APR based on payments of £314.17 per month
Senior Underwriter: Ok No problem (Confirmed probably after double checking everything with her agent that there are no problems)
ME: Alright
Senior Underwriter: Now there’s a one off administration of £49.99 and I am going to arrange to send you the documents that you need to sign and send back to us (Normally paid at the beginning of the start of the credit agreement this payment covers the administration for the underwriting of the loan)
ME: Ok Yeah (Accepting the payment of the Underwriting administration fee)
Senior Underwriter: Then When I receive that back from yourself it takes 7 to 10 working days to process the application (This is in relation to the documents)
ME: Ok not a problem (Expressing that I have no issues in waiting the 7 to 10 days for the loan to hit my bank account)
Senior Underwriter: do that today (My impression of this quote is that she will be processing the paperwork for me to sign today)
ME: Yeah
Senior Underwriter: I can see on the system that you are currently banking with Halifax
ME: That’s right yeah
Senior Underwriter: Is the card registered in your name? (She is doing this to check and validate my statement that I do have a bank account with Halifax)
ME: It is yes (Confirmed that it is my card and my account)
Senior Underwriter: When does it expire? (She needs more information to validate that I am telling the truth)
ME: It expires xx-xx (Confirmed)
Senior Underwriter: And when was it valid from? (More Questions but they must need them to perhaps reset payments up on the card or as a direct debit from my account as all the details for this are held on the card)
ME: xx-xx
Senior Underwriter: And the last three numbers on the back of the card please?
ME: Do you need the long number at all? (I am starting to get suspicious as to how much detail I am having to give in relation to this account questioning)
Senior Underwriter: Yeah we need that too (ok its more understanding now that she needs quite a few details in relation to my banking account they are only protecting their interests)
ME: The numbers on the back of the card are xxx (trustingly given)
Senior Underwriter: And the long number through the front please?
ME: Yes its xxxx xxxx xxxxx xxxx (trustingly given)
Senior Underwriter: Do you have a pen there so that I can give you, your reference number? (Shouldn’t she be asking if I give my approval to take the £49.99 from my bank account?)
ME: Yeah if you give me a second I’ll grab a receipt out my wallet actually
ME: Yeah I do yeah
Senior Underwriter: xxxx
ME: xxxx
Senior Underwriter: xxxx
ME: xxxx
Senior Underwriter: If you have any questions regarding your documents, give us a call with that reference
ME: OK Yeah do you have a number to call or anything?
Senior Underwriter: 0871
ME: 0871
Senior Underwriter: 705
ME: 705
Senior Underwriter: 0786
ME: 0786 Yeah?
Senior Underwriter: Yeah
ME: And it takes 7 to 10 days to process yeah?
Senior Underwriter: Yes it then 7 to 10 working days to process the application
ME: Not a problem
Senior Underwriter: Thanks very much for your time and have a nice day
ME: And you
Senior Underwriter: Thank you
ME: Bye
End of Call
A Screen shot of the payment from my Halifax Account
This verifies a contract between myself and Direct Finance UK Ltd for them to supply a loan of £15,000 over 5 years at 7.9% APR and a repayment of £314.17 per month