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  • FIRST POST
    • Walda Wild
    • By Walda Wild 11th May 17, 5:06 PM
    • 34Posts
    • 14Thanks
    Walda Wild
    Secured Loan/Elderbridge Ltd - Advice Needed Please!
    • #1
    • 11th May 17, 5:06 PM
    Secured Loan/Elderbridge Ltd - Advice Needed Please! 11th May 17 at 5:06 PM
    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.
    If life gives you lemons, make lemonade!
Page 1
    • Arleen
    • By Arleen 11th May 17, 5:29 PM
    • 988 Posts
    • 727 Thanks
    Arleen
    • #2
    • 11th May 17, 5:29 PM
    • #2
    • 11th May 17, 5:29 PM
    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.
  • National Debtline
    • #3
    • 12th May 17, 11:54 AM
    • #3
    • 12th May 17, 11:54 AM
    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
    We 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 Steps
    • amersall
    • By amersall 12th May 17, 12:50 PM
    • 15,177 Posts
    • 18,752 Thanks
    amersall
    • #4
    • 12th May 17, 12:50 PM
    • #4
    • 12th May 17, 12:50 PM
    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.
    Originally posted by Walda Wild
    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.

    • Walda Wild
    • By Walda Wild 16th May 17, 3:05 PM
    • 34 Posts
    • 14 Thanks
    Walda Wild
    • #5
    • 16th May 17, 3:05 PM
    • #5
    • 16th May 17, 3:05 PM
    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.

    Itís advisable to speak to Elderbridge before you go ahead and change the amount of the payment as this will mean itís less likely they start court action. They wonít be able to change the amount of the standing order, thatís something you have to do directly with the bank.

    Susie
    @Natdebtline
    Originally posted by National Debtline

    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!
    • Walda Wild
    • By Walda Wild 16th May 17, 3:19 PM
    • 34 Posts
    • 14 Thanks
    Walda Wild
    • #6
    • 16th May 17, 3:19 PM
    • #6
    • 16th May 17, 3:19 PM
    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.
    Originally posted by amersall


    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!
  • National Debtline
    • #7
    • 16th May 17, 3:33 PM
    • #7
    • 16th May 17, 3:33 PM
    Hi Walda Wild



    Does SOA stand for Statement of Affairs?
    Who needs to see it if there is no intention to go bankrupt?
    Originally posted by Walda Wild

    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 youíre 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
    @natdebtline
    We 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 Steps
    • amersall
    • By amersall 16th May 17, 3:44 PM
    • 15,177 Posts
    • 18,752 Thanks
    amersall
    • #8
    • 16th May 17, 3:44 PM
    • #8
    • 16th May 17, 3:44 PM
    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.
    Originally posted by Walda Wild
    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.
    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

    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%.
    Last edited by amersall; 16-05-2017 at 3:49 PM.

    • Walda Wild
    • By Walda Wild 16th May 17, 4:08 PM
    • 34 Posts
    • 14 Thanks
    Walda Wild
    • #9
    • 16th May 17, 4:08 PM
    • #9
    • 16th May 17, 4:08 PM



    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%.
    Originally posted by amersall


    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!
    • amersall
    • By amersall 16th May 17, 4:29 PM
    • 15,177 Posts
    • 18,752 Thanks
    amersall
    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?.

    • Walda Wild
    • By Walda Wild 17th May 17, 5:17 PM
    • 34 Posts
    • 14 Thanks
    Walda Wild
    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?.
    Originally posted by amersall


    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!
    • amersall
    • By amersall 17th May 17, 9:00 PM
    • 15,177 Posts
    • 18,752 Thanks
    amersall
    get your Hubby to phone them and give permission to speak to you, this is better and faster, have your income and expenditure ready.

    Dont delay, this will stress you even more, it is worth calling them to put your mind at rest.

    Is the balance £3,000 or, did you miss a zero?, If it is only £3,000 i doubt they will go for repossession, I am sure they will work with you, unless there is something your Hubby is not telling you

    Do it and good luck.
    Last edited by amersall; 17-05-2017 at 9:14 PM.

    • Walda Wild
    • By Walda Wild 17th May 17, 10:56 PM
    • 34 Posts
    • 14 Thanks
    Walda Wild
    get your Hubby to phone them and give permission to speak to you, this is better and faster, have your income and expenditure ready.

    Dont delay, this will stress you even more, it is worth calling them to put your mind at rest.

    Is the balance £3,000 or, did you miss a zero?, If it is only £3,000 i doubt they will go for repossession, I am sure they will work with you, unless there is something your Hubby is not telling you

    Do it and good luck.
    Originally posted by amersall


    No missing zeros, thanks


    3100£ back in March 2017, so now it must be 2700£.


    He said he spoke with them in all sorts of ways in the past, so that is why I would rather attempt to write.


    But thanks for your advice yet again, Amersall.
    If life gives you lemons, make lemonade!
    • GarthThomas
    • By GarthThomas 18th May 17, 9:28 AM
    • 147 Posts
    • 230 Thanks
    GarthThomas
    No-one's explicitly pointed this out yet, I think, but if they don't feel that they will get their money back then they can go down the route of taking your home off you.

    Is there no way you can take on evening or weekend work, sell a car, ebay your possessions etc. to raise the money?
    • amersall
    • By amersall 18th May 17, 12:01 PM
    • 15,177 Posts
    • 18,752 Thanks
    amersall
    You make very valid points in your post.
    Walda Wild only knows so much regarding this as her Hubby took this loan out, she states that in her opening post.

    It could be that the Husband has made several "offers of payment" but has never stuck with them, in that case they could go for repossession rather than make another arrangement to pay, we nor Walda, know what the full circumstances are surrounding this loan, she posted that

    He said he spoke with them in all sorts of ways in the past, so that is why I would rather attempt to write.
    Which makes me think he has broken some arrangements in the past and does not want to speak to them now, this is understandable.

    If the Hubby has stuck to the current repayment plan, I doubt they would go for repossession for being asked to lower the payment due to circumstances, especially with the low balance.

    This must be an awful situation to be in and I hope this gets sorted for them positively.

    • Walda Wild
    • By Walda Wild 18th May 17, 2:43 PM
    • 34 Posts
    • 14 Thanks
    Walda Wild
    No-one's explicitly pointed this out yet, I think, but if they don't feel that they will get their money back then they can go down the route of taking your home off you.

    Is there no way you can take on evening or weekend work, sell a car, ebay your possessions etc. to raise the money?
    Originally posted by GarthThomas


    Why wouldn't they feel they will get their money back if the debtor has a stable full time job, but given change in our family budget, we would only want to pay smaller monthly instalments for a longer period of time?


    The car is a company car...
    If life gives you lemons, make lemonade!
    • Walda Wild
    • By Walda Wild 18th May 17, 2:48 PM
    • 34 Posts
    • 14 Thanks
    Walda Wild

    Which makes me think he has broken some arrangements in the past and does not want to speak to them now, this is understandable.

    If the Hubby has stuck to the current repayment plan, I doubt they would go for repossession for being asked to lower the payment due to circumstances, especially with the low balance.

    This must be an awful situation to be in and I hope this gets sorted for them positively.
    Originally posted by amersall

    You're right, he does no longer want to speak with them, in fact, he is reluctant to discuss it all over again with me.


    But we agreed on trying to negotiate in written way to find out if they agree.


    3K is a lot of money in my view, but I am also inclined to believe that might not be the sum worthy enough for repossession if payments still being made?
    If life gives you lemons, make lemonade!
    • Walda Wild
    • By Walda Wild 18th May 17, 3:04 PM
    • 34 Posts
    • 14 Thanks
    Walda Wild
    I am reading through their last letter right now and it also says:


    "The current rate of interest is 7.9120% and your loan is on variable interest rate".


    What does it even mean? Is it constantly increasing anyway?
    If life gives you lemons, make lemonade!
    • amersall
    • By amersall 18th May 17, 7:50 PM
    • 15,177 Posts
    • 18,752 Thanks
    amersall
    It can increase and most likely will, you rarely get a decrease with these.
    They can put the rate up at anytime and for any reason, I kid you not, if you could see the agreement and look at the interest rate section on the reverse, you will see what I mean.

    If you could negotiate another reduction, this loan will keep increasing for each month you pay less, it will cost you a lot more than £3000 in the long run.

    They may not allow another reduction, it depends how many have been broken to date. They may then decide to take further action, this is hard as it is secured on your property, you really need to negotiate with them and the quickest way to do this is by phone.

    It is a shame you cannot afford to pay it in full each month.

    Is the full loan payment being made at the moment, or, is it a reduced payment and something off any arrears?.
    Last edited by amersall; 18-05-2017 at 8:02 PM.

    • amersall
    • By amersall 19th May 17, 9:32 AM
    • 15,177 Posts
    • 18,752 Thanks
    amersall
    These are the interest terms on a First Plus loan.



    "We may from time to time vary our interest rate. We may increase or reduce our interest rates to reflect a change which has occurred,
    or which we resonably expect to occurrin interest rates generally or to ensure our business is carried outprudently, efficently and competitively.
    The interest rate on your account will not in any twelve month period vary by more than twice the variation in the Finance House Base Rate published
    by the Finance and Leasing association during the same period.
    If for any reason the Finance and Leasing Association ceases to publish the Finance House Base Rate, we may refer the variation in our interest rate
    to another base rate which in our resonable opinion best matches that rate.

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