Secured Loan/Elderbridge Ltd - Advice Needed Please!
Walda_Wild
Posts: 58 Forumite
Hi everyone,
having read through related topics on the forum, would still appreciate advice and possibly own experiences.
I discovered a few months ago that my husband had the secured loan with First Plus, which was later sold to Elderbridge.
He took this loan many years ago, and presumably payments were being made until they were not.
He filled up income and expenditure form also without my knowledge and commited to make 200£ monthly payments to Elderbridge.
Despite the secrecy and other sides of the whole situation, since our circumstances changed from December 2016 when he started monthly payments, we feel financially trapped.
By circumstances I mean that I now out of work due to health issues, we have a massive British Gas debt and some other so called non-priority debts, mortgage, council tax, etc.
My question is: is it worth of us contacting Elderbridge again via a written letter to request another "income/expenditure" form for them to consider reducing monthly payment to 100£ per month? He seems very nervous about the idea, as the house is involved, but equally this is a big chunk of money for us to be paying at the moment.
If payments are being made by standing order, does he have to speak to the agency themselves or his bank to change repayment amounts?
Thank you all in advance for any advice, guidance or possibly examples of dealing with similar debts.
having read through related topics on the forum, would still appreciate advice and possibly own experiences.
I discovered a few months ago that my husband had the secured loan with First Plus, which was later sold to Elderbridge.
He took this loan many years ago, and presumably payments were being made until they were not.
He filled up income and expenditure form also without my knowledge and commited to make 200£ monthly payments to Elderbridge.
Despite the secrecy and other sides of the whole situation, since our circumstances changed from December 2016 when he started monthly payments, we feel financially trapped.
By circumstances I mean that I now out of work due to health issues, we have a massive British Gas debt and some other so called non-priority debts, mortgage, council tax, etc.
My question is: is it worth of us contacting Elderbridge again via a written letter to request another "income/expenditure" form for them to consider reducing monthly payment to 100£ per month? He seems very nervous about the idea, as the house is involved, but equally this is a big chunk of money for us to be paying at the moment.
If payments are being made by standing order, does he have to speak to the agency themselves or his bank to change repayment amounts?
Thank you all in advance for any advice, guidance or possibly examples of dealing with similar debts.
If life gives you lemons, make lemonade!
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Comments
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Explaining to them how your circumstances have changed should lead to re-evaluation. But I would suggest that you first post here a complete household SOA together with your husband to have a better picture of your finances.0
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Hi Walda Wild
Secured loan, mortgage, council and energy arrears are all classed as priority debts due to the powers they have to recover the debt. If you have unsecured credit debts like credit cards, catalogues and overdrafts, these would be classed as non priority debts as their powers are much more limited.
Certainly your starting point is the SOA as Arleen suggested. You will need to make sure your spare money is split fairly between all your priority debts, this may mean reducing or stopping payments on your non priority debts. I would recommend you seek advice from one of the free debt advice agencies on your options.
It’s advisable to speak to Elderbridge before you go ahead and change the amount of the payment as this will mean it’s less likely they start court action. They won’t be able to change the amount of the standing order, that’s something you have to do directly with the bank.
Susie
@NatdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
I talk from experience with First Plus, I had to make an arrangement to pay a few years ago, glad I didn't have to do it again.Walda_Wild wrote: »Hi everyone,
having read through related topics on the forum, would still appreciate advice and possibly own experiences.
I discovered a few months ago that my husband had the secured loan with First Plus, which was later sold to Elderbridge.
He took this loan many years ago, and presumably payments were being made until they were not.How many years ago and was PPI on this loan?.
He filled up income and expenditure form also without my knowledge and commited to make 200£ monthly payments to Elderbridge.
What was the original monthly payment? I ask this because the longer you can do reduced payments for, the higher (and a lot higher) this loan balance will be.
Despite the secrecy and other sides of the whole situation, since our circumstances changed from December 2016 when he started monthly payments, we feel financially trapped.
By circumstances I mean that I now out of work due to health issues, we have a massive British Gas debt and some other so called non-priority debts, mortgage, council tax, etc.
Are you likely to be out of work long term?. If Elderbridge are as bad as First plus, you may not get a low payment term for too long
My question is: is it worth of us contacting Elderbridge again via a written letter to request another "income/expenditure" form for them to consider reducing monthly payment to 100£ per month? He seems very nervous about the idea, as the house is involved, but equally this is a big chunk of money for us to be paying at the moment.Give them a ring,there is no harm in asking and it would help you out for now
If payments are being made by standing order, does he have to speak to the agency themselves or his bank to change repayment amounts?First Plus only did Direct Debit, you are lucky to get a Standing order with these.
Elderbridge will alter the D/D but you change the S/O Make sure you pay priority debts, contact other debtors, give them an income and expenditure and, usually, they will allow this, this will give you some breathing space.
Thank you all in advance for any advice, guidance or possibly examples of dealing with similar debts.
Other creditors accepted reduced payments and we got back on track. Good luck with this.0 -
National_Debtline wrote: »Hi Walda Wild
Secured loan, mortgage, council and energy arrears are all classed as priority debts due to the powers they have to recover the debt. If you have unsecured credit debts like credit cards, catalogues and overdrafts, these would be classed as non priority debts as their powers are much more limited.
Certainly your starting point is the SOA as Arleen suggested. You will need to make sure your spare money is split fairly between all your priority debts, this may mean reducing or stopping payments on your non priority debts. I would recommend you seek advice from one of the free debt advice agencies on your options.
It’s advisable to speak to Elderbridge before you go ahead and change the amount of the payment as this will mean it’s less likely they start court action. They won’t be able to change the amount of the standing order, that’s something you have to do directly with the bank.
Susie
@Natdebtline
Hi Susie,
thanks for your advice. We're aware of prioritising secured loans and priority debts, however debt for British Gas, for example, is taken automatically through PAG meter (which they installed this winter). So we top up weekly substantial amounts just to find out it's 2£ or so left available.
Does SOA stand for Statement of Affairs?
Who needs to see it if there is no intention to go bankrupt?
Thanks for the information regarding Standing Order.If life gives you lemons, make lemonade!0 -
I talk from experience with First Plus, I had to make an arrangement to pay a few years ago, glad I didn't have to do it again.
Other creditors accepted reduced payments and we got back on track. Good luck with this.
Hi Amersall, thank you for a thorough reply and sharing your experience.
My husband said the initial amount was 150£ per month, and the reason that he stopped paying it was exactly the issue with PPI, which he said they refunded, but that apparently still left around 3000£ of outstanding debt.
I personally can't be calling them since the debt is not on my name, but I am willing to compose a letter and fill necessary forms to help matters.
I also feel agencies of this nature are sometimes better dealt with in a written form in order to avoid "he said - she said" in the future.
Glad it is all over for yourself though.If life gives you lemons, make lemonade!0 -
Hi Walda WildWalda_Wild wrote: »
Does SOA stand for Statement of Affairs?
Who needs to see it if there is no intention to go bankrupt?
Yes an SOA is a statement of affairs, and just another term for a budget sheet or income and expenditure sheet. You need to use it with any company you are negotiating with.
If you’re struggling with repaying the British Gas debt you can ask them to take a smaller deduction from the pre payment meter. Send them a copy of the SOA along with this sample letter and your offer of payment:
https://www.nationaldebtline.org/EW/sampleletters/Pages/Ask-your-energy-supplier-to-accept-payments-you-can-afford-on-a-gas-or-electricity-debt-%28sole-name%29.aspx
Susie
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
If Elderbridge are like FP, you Hubby should call them and explain your situation, give them a new income and expenditure and ask for the payment to be reduced, this is the fastest way to get this sorted.Walda_Wild wrote: »Hi Amersall, thank you for a thorough reply and sharing your experience.
My husband said the initial amount was 150£ per month, and the reason that he stopped paying it was exactly the issue with PPI, which he said they refunded, but that apparently still left around 3000£ of outstanding debt.
I personally can't be calling them since the debt is not on my name, but I am willing to compose a letter and fill necessary forms to help matters.
I also feel agencies of this nature are sometimes better dealt with in a written form in order to avoid "he said - she said" in the future.
Glad it is all over for yourself though.
See what they come back with and keep us updated.
It wont be a case of he said she said, you are only asking for a reduction in payments.
Post up your income and outgoings, don't be embarrased, sh*t happens to the best of us.
There may be a way to reduce your overall out goings, we can help you.
By the way, I will swap your monthly payments for mine
In excess of £800 :eek:
By the way, and most importantly, check the PPI redress, make sure the WHOLE PPI amount was taken off the balance and the monthly payment reduced by the PPI amount, not including interest as you would have received this back with 8%.0 -
By the way, and most importantly, check the PPI redress, make sure the WHOLE PPI amount was taken off the balance and the monthly payment reduced by the PPI amount, not including interest as you would have received this back with 8%.
And how exactly this can be done please?
I do have a dodgy feeling it could have not been all paid off and hubby just wants "them off his back"...
Cheers again.If life gives you lemons, make lemonade!0 -
Your Hubby should have letters about the redress with the calculations, ask him to show them to you.
You will need to look at the agreement, it will show separate amounts for loan, PPI and interest.
Do you think he has had the PPI redress and spent it?, also, did he forge your signature if this was a joint loan?.
Did he actually claim mis sell for the PPI?.0 -
Your Hubby should have letters about the redress with the calculations, ask him to show them to you.
You will need to look at the agreement, it will show separate amounts for loan, PPI and interest.
Do you think he has had the PPI redress and spent it?, also, did he forge your signature if this was a joint loan?.
Did he actually claim mis sell for the PPI?.
He said that PPI was repaid eventually covering substantial part of the original loan.
Like I wrote earlier the debt is not on my name, so no joint accounts there, I am just trying to help sort our current budget out.
The only paperwork I have seen is the letter dated March this year, showing the outstanding balance and agreed monthly payment amounts.
Just trying to see if with this type of debt it is worth spending time and effort of trying to negotiate smaller amounts via letters or it may be a complete waste of time.If life gives you lemons, make lemonade!0
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