aa loans (Other Personal Loans)

Member Name: kellydoodoo

Product:	Other Personal Loans
Date:	14/10/05 (417 review reads)
Rating:

Advantages: not secured on house, low rates

Disadvantages: You pay for the 3 month holiday and no early repayment discount

I applied for my aa loan to buy a new car in 2002. It was the lowest rate I could find as I was not a homeowner at the time.

The service was quick and efficient. However.. the check was sent by courier and I was not informed of the costs. It took time for the cheque to clear so I have no idea why they cannot do it by bank transfer.

I automatically had GAP insurance added to the loan. I did not need this as I was puting down a substantial deposit on the car and paying over 3 years. I got charged £199 for this and I did not know I had it until the paper work came through.

Due to personal circumstances I was able to pay off the loan early in March 2004. However, I did not get a refund on the interest that I really should not be paying.

This is the difference between car finance from a garage and a personal loan. Car finance would reduce the interst due as it was not over the full term.

I think now you can get personal loans which do not charge you the full interest as the FSA has ruled that it is unfair to charge interest for a term which is not full.

Another annoying thing about the aa was I kept getting leaflets throught the door asking me to refinance the loan over a longer term so I can borrow more. The called the house as well.

the three month holiday offered is an opportunity to charge you interest for a further three months on the full loan amount. It is not free. The term you are taking the loan over is 3years and 3 months!

If someone asked me if I Would recommend the AA for a loan I would say yes. Thier rates are very competitive but I would warn them about the hidden costs.

Summary: efficient and competitive rates but hidden costs.