Why are my loan account Terms & Conditions changing?
We've been making some changes to our banking systems which means we need to amend the Terms & Conditions of our loan accounts.
I have more than one loan with Sainsbury's Bank, are all my loans changing?
All loans opened before 10 December 2017 will be updated on our system. If your loan was opened on or after that date nothing will change.
Why have I received more than one letter?
We've sent you a letter for each loan account you hold with us. And for joint accounts both account holders were sent a letter for each account they hold.
Why have you sent it to this address?
We've used the most recent address we hold on file for you. If this is no longer correct, please let us know and we'll be happy to update our records.
What Terms and Conditions are changing?
All of the changes we're making to your Terms and Conditions are explained in full in the letter we sent to you.
When will the changes to my Terms and Conditions be applied?
The changes will take place within a five month window. We'll write to you again to confirm when they're complete. Please note you can continue to contact us with any questions as normal. Your payments will not be impacted whilst the changes are taking place.
Will my yearly statement change?
The layout of your statement will change, but the information within the statement won't. Your account details will change from an agreement number to a sort code and account number. You'll still see your original loan amount and the APR. All transaction information will be the same.
Will I still be able to manage my loan account by telephone?
Yes, you’ll still be able to manage your Sainsbury’s Bank loan account(s) by calling us on 0800 096 0543.
Will the service I receive be affected by these changes?
Not at all. We will continue to provide competitive products and the highest level of service for our customers.
I like to contact you when and how I need to. Will this change?
No. You can still contact us in the same way by calling 0800 096 0543.
Will I still be able to make payments to my loan account?
Yes but the information you need to use to make payments to your loan will change. Once the system changes have been made we'll send you a letter detailing your new sort code and account number. Until you receive this you can continue to make payments with the same information you use today.
Your letter mentions there will be 2 Direct Debits set up on my account, why is that?
Changing your account details to a Sort Code / Account Number format means we have to set up a new Direct Debit. So you may see two Direct Debit references on the account you make your payments from. However, we will only continue taking payments from the new one.
Will my interest still be charged to my account in the same way as it is just now?
The changes we're making will not affect the amount of interest you will pay, your total amount payable or your monthly payments. How interest is calculated on your loan will stay the same but how it is applied will change. Previously all interest due on your account was charged at the start of your loan (called front loading) but going forward interest will be applied monthly to your account.
What is the difference between 'front loaded' interest and 'monthly accrual' interest
Front loaded interest is where the total amount of interest due on any amount borrowed is calculated at the start of the loan and applied to the overall balance of the loan from Day 1. Monthly accrual interest is where no interest is applied at the outset of the loan but is calculated daily and applied to the account once a month. Both methods charge the same amount of interest on a loan but how it is applied is different.
Why is my Agreement Number changing?
Our system changes mean each loan will change from having an agreement number to a sort code and account number. Please use these when servicing your account.
Is my interest rate changing?
No, your interest rate will not change.
Will I pay more for my loan because of these changes overall?
No you will not pay any more than the total cost of credit that was outlined in your original loan agreement, subject to you adhering to the terms of your loan.
Will how much I pay a month to my loan change?
No your monthly payments will not change.
Can I still pay my loan off early if I want to?
Yes, you can call us to request an early settlement quote at any time.
How will the way you allocate my payments to my loan change?
A the moment when you make a payment it's allocated towards what you owe in the following order:
Fees and other charges
Arrears interest (only applicable if account is in arrears)
Your outstanding loan (including loan arrears)
Once we make the changes to your account payments will be allocated as follows:
Loan amounts due – this will include any amounts overdue on the loan (only applicable if account is in arrears)
Arrears fees and interest (only applicable if account is in arrears)
Your outstanding loan
The good news is that if you miss a payment you will be charged less interest on your loan arrears, as they’ll be cleared first.
Will I be notified when changes have been made to my account?
Yes, we'll send you a letter with your new account details and your outstanding Loan balance as soon as the changes have been made.
What if I don’t like the changes in T&C's
If you don't like the changes to our T&C's you may choose to repay your loan. You can do this by calling us on 0800 096 0543 to request an early settlement figure.
Why have I received a Loan statement before my regular due date?
As we're making changes to your account we wanted to give you a statement showing the outstanding balance of your loan prior to any changes taking place. This will allow you to see the effect of any changes we make to your overall balance. A second letter will be with you shortly explaining any adjustments made and the new balance of your loan. This will also let you see how your loan information will be shown in any subsequent statements you receive from us.
Why have you sent the letter with my maiden / married / incorrect name?
We've used the most recent details we hold on file for you. If these are no longer correct and you have legally changed your name please send us one of the following (original or certified copy):
Deed poll documentation
Divorce documentation (such as a Decree Nisi or Decree Absolute) along with the Deed poll documentation, if applicable.
Please send the document(s) to Sainsbury's Bank, PO Box 4953, Worthing BN11 9YX
Once we receive the relevant documentation, we will process the change of name.
Can I still make payments other ways, i.e. Cash and Cheque?
Yes, you can still make payments other ways. However, you’ll need to update any payment instructions you have set up with your new sort code and account number. We’ll send you these details in a separate letter to be issued once the changes have been made. Until you receive this you can continue to make payments with the same information you use today.
How do I get through to you to speak to someone about my account? I tried to phone you but got lost in the automated telephone service (IVR)
In order to speak to one of our team, please follow these instructions: 0800 096 0543 - Option 2 for before Dec 2017, followed by Option 2 for anything else.
Will my Direct Debit still be taken from my account on the same date?
The amount you pay and the date of your Direct Debit payments will, for most customers, continue to be the same.
However, if your Direct Debit payment date is scheduled for 29th, 30th or 31st of the month, we will be moving your repayment date to the 1st of the following month. Our system changes mean we can no longer collect loan Direct Debit payments on the above dates.
If your repayment date is moved to 1st we’ll set up a new Direct Debit instruction automatically and your transaction reference will appear as your new account number on your statement. This means you will see two Direct Debit instructions on your loan repayment account. But don’t worry, we will only take payments using the new one. The previous instruction will become dormant and removed from your account after 13 months.
Please note no additional interest will be charged to your loan as a result of this change.