First National > Reviews > Definitely read the small print with these people

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Additional Charges
Ease of Application

Advantages:	None whatsoever
Disadvantages:	rip off interest, don't help the customer, too much to mention .

Recommend to potential buyers:

no

Full review

Please, please read the small print on the loans especially with these people. I have a CCJ because of getting a home improvement loan with them.

We ordered a new kitchen 7 years ago, having just moved house. The kitchen people recommended First National's home improvement loan.

We needed £3,000 for the kitchen. The loan they sold is also widely used by double glazing companies and other home improvement centres. It is the biggest rip off ever. Extortionate interest is charged, if you don't pay more than you should.

I didn't read the small print properly enough, to my regret.

They sell the loan that if you pay more than the basic amount you pay less interest. The minimum loan payment was £75 per month, which really stretched us then, so to start with it we were wrongly advised. There was no way we could pay any more money on top of the minimum payment.

My second biggest mistake was not realising how long 120 months was, stupid of me I know. But you don't realise at the time that 120 months is ten years to pay back £3k.

We plodded along paying it and then got a shock when the first years statement arrived, out of our £75 a month, only £25 a month was coming off the amount owed, the other £50 was interest. I duly contacted then, saying this can't be right etc, but it was. I asked them to change the loan, to freeze the interest just like all those advice programme say to do, but no way would they do it.

I tried the debtline companies, Citizens Advice Bureau , none of which were any good. I was so worried though, common sense left me and I forgot to contact my bank who were always very good (the Royal Bank of Scotland).

By then I had gone on maternity leave and couldn't even pay the minimum amount, I offered them less and all sorts of things but to no avail. The only option open to me I thought was to let it go to court and try and argue my case and sort the payments out. I knew the trouble it causes having a CCJ registered against you, but didn't have much option left anymore.

I prepared a defence which didn't work unsurprisingly! The judge was sympathetic. The bank sent a local solicitor who was helpful. The worst shock was that, yes when I paid the £3k back, First National could sue me for the loss of interest, god forbid that would be about £8k.

I still have about 1 and a half years left to pay back the money owing and then will still be blacklisted for 3 years (I think) but when the time comes, I really will be seeking my banks help and advice and a solicitor this time around if they try and sue me for the interest.

To any would be purchasers of this type of loan, please don't get it, unless you can afford the extra payments. It really is cheaper to get a bank loan from your Bank and read the small print.

With regards to getting credit, yes its a nightmare. The RBS have been very good actually, they've let me have a switch/cheque card, and a bank loan last year for some double glazing, I think thats only because I've had an account with them for 16 years and both wages go in the bank etc. I cannot get a credit card/store card, mobile phone contracts aren't always given. Catalogues don't want to know, and most other banks won't give us a bank account even one without cheque card use.

I want to change mortgages as well, so thats the next test to see how it affects us moving mortgages, I'm not expecting miracles.

Cynically, the only advantage to all this, is I don't have a horrendous credit card bill after Christmas