Loan Changes FAQs

We've been making some changes to our banking systems which means we need to amend the Terms & Conditions of our loan accounts.

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.

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.

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.

All of the changes we're making to your Terms and Conditions are explained in full in the letter we sent to you.

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.

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.

Yes, you’ll still be able to manage your Sainsbury’s Bank loan account(s) by calling us on 0800 096 0543.

Not at all. We will continue to provide competitive products and the highest level of service for our customers.

No. You can still contact us in the same way by calling 0800 096 0543.

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.

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.

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.

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.

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.

No, your interest rate will not change.

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.

No your monthly payments will not change.

Yes, you can call us to request an early settlement quote at any time.

A the moment when you make a payment it's allocated towards what you owe in the following order:

1. Fees and other charges
2. Arrears interest (only applicable if account is in arrears)
3. Your outstanding loan (including loan arrears)

Once we make the changes to your account payments will be allocated as follows:

1. Loan amounts due – this will include any amounts overdue on the loan (only applicable if account is in arrears)
2. Arrears fees and interest (only applicable if account is in arrears)
3. 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.

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.

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.

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.

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):

• Marriage certificate
• 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.

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.

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.

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.