CENTRAL TRUST- i am a mole

dariop

Slightly obscure question, but it does relate to Central Trust.

In common with a few posters on this thread I found my Central Trust secured loan repayments going up, when interest rates were going down. I called to ask why and was given the same LIBOR explanation as another poster. However the LIBOR has gone down substantially, so that was clearly false information - which used to be called lying,

What I did in a effort to reduce my monthly repayment was pay off some capital, about 40% of the loan balance. I expected my monthly payment would go down accordingly, but it didn't. So I called Central Trust and asked why, their explanation was that they had "reduced the term of the loan", rather than the monthly repayment - as this was their "policy". I said that wasn't satisfactory, and asked for my money back, they refused.

To date, we are now many months after the event, they have still not confirmed to me what the reduced term of my loan is. I called again today to query this and was given the original loan term - so in effect I paid 40% of the loan off and appear to have received no reduction in loan repayments, nor in loan term. Although I'm thinking this is due to sloppy accounting, rather than anything more sinister.

My agreement makes no mention of what happens when you pay off part of the loan (only the whole balance), however normal business practice is that repayments are reduced accordingly. Is this one for the FOS?

hephalump

We took out a loan through Central Capital with Firstplus and were mis sold a ppi. We were told it was a single premium policy but were not told it would form part of the loan and would bear interest the entire life of the loan. My husband is a director in a company has quite healthy benefits covering diability etc and if they paid him off his redundancy would have more than covered the loan. The girl who sold us the policy pushed very hard (I told her about my husbands situation) but she pushed on and finally to get rid of her we agreed. Part of her sales pitch was repayment of premiums but didn't mention all that lovely interest the company made from the policy or that because my husband was already covered they would not payout anyway. These policies are not permitted anymore. This came to light when we were contacted by a firm which gains refunds against ppi's(do not touch unless you must 25% taken from payout). Anyway contacted FOS and they have taken it out of our hands and are dealing with it for free...so I'm guessing that if the FOS is so willing to get involved from the start Central Trust must have been proven to have had a bad track record in the past....WE PAID BACK THE LOAN AFTER 2 YEARS BUT HAD TO PAYBACK OVER £87000

Loan amount £70000 ORIGINAL LOAN
PPI: £17143 NON REFUNDABLE AS STATED BY COMPANY

kasaer

hi i wud like some advice. i took out a 25,000 secured loan with central trust in 2008. i've worked out how much i will be repaying and i will paying back over90,000 surly this cant be right paying bak nearly 4 times the loan amount. have i been a stupid fool by taking this out in the first place

di3004

kasaer wrote: »

hi i wud like some advice. i took out a 25,000 secured loan with central trust in 2008. i've worked out how much i will be repaying and i will paying back over90,000 surly this cant be right paying bak nearly 4 times the loan amount. have i been a stupid fool by taking this out in the first place

Hi there

Its very expensive, it all adds up.
But I take it PPI is added into that as well then?

src007

Hello kasaer,

Have you still got the papwork? Does it say how much the PPI is for?

You may well have been mis-sold insurance with the loan. If you find you have the cover, you first need to write a letter of complaint to Central Trust (plenty of people on here can help you if you're not sure what to put!) Central Trust tend to write very long 'rejection' letters with confusing technical terminology to put you off.

When you get a 'final response letter' from the lender you have the right to take the complaint to the Financial Ombudsman Service (you only need to complete a couple of quick forms)

Central Trust have been losing almost all PPI complaint at the Financial Ombudsman Service, so if you have the cover it's definitely worth doing!

wenson

Hi, this happened to us, their suggestion, please can you tell me if you managed to get anywhere, Central Trust have since repossessed our property and are selling for a ridulous low amount.

They'v not done things by the book in my opinion, and we will be going to the FSO, if anyone has any information on Central Trust please get in contact.

Thanks very much.

shelldanielle

my bfs original secured loan on his property, was £16,000(5years ago) been paying what they have told him for 5years.Last year we got into difficulties told central trust and they agreed to let us pay about £60 less they didnt tell us we wouldnt cover interest. Now he owes nearly £22,000 and has been paying for 5years about £200 so in fact hes already paid £12,000 without interest and they say he still owes nealry £22,000. We are trying to sell the property at auction but it just isnt selling if central trust froze the interest we could see a light at the end of the tunnel but were just going deeper and deeper in debt!

themanfromgoldengreen

I have a secured loan on my property amounting to around £20 000. I have recently come into some money and could just about pay off the loan in full. However, I do have some other debts here and there, mostly credit cards, which I would also like to take care of. I thought that it was worth making CT an offer, as one does with unsecured debt. I have just been made redundant and I thought this, together with the state of the housing market, would be attractive to them, also considering that they only have a 'secondary charge' on my house after the mortgage company. I offered them £15 000 as an opening gambit, but they seem uninterested in this and have not come back with a counter offer to settle, which I was expecting.

What they did say was that they could take the £15K and include in that a six month grace period in which I would not have to pay anything. However, I was hoping, at least, that they might say 'give us the £15K and you can pay off the remaining £5K over the original period, which would be about £70(?) a month, rather than the £260 I am paying now. They seem not interested in keeping the repayment period the same, only the monthly repayment amount, which, if I give them my £15K, I will have almost no hope of repaying, given my current situation. I would not like to lose my home over a measly £5K.

Due to my credit rating, I am unable to replace this loan with another on better terms. Any advice to proceed would be grateful. Should I offer them a greater amount? Is there any precedent for this from the perspective of your position?

Thanks:(

Premierlady08

the more I have read about Central Trust on this forum, the more I know I have been a silly fool. Took out a secured loan in 2008. Hubby is self employed, forced into PPI but blatently told we can claim if we shut down the business only!!! Fell behind and now they want to take away my home, for sake of £1000 arrears. Can anyone actually talk to these people? They also claim my PPI is non stoppable! Wouldn't recommend these people. At least loans are now sliding scale clues on the websites! I shall battle on!:o

ljp1938

Premierlady08 wrote: »

the more I have read about Central Trust on this forum, the more I know I have been a silly fool. Took out a secured loan in 2008. Hubby is self employed, forced into PPI but blatently told we can claim if we shut down the business only!!! Fell behind and now they want to take away my home, for sake of £1000 arrears. Can anyone actually talk to these people? They also claim my PPI is non stoppable! Wouldn't recommend these people. At least loans are now sliding scale clues on the websites! I shall battle on!:o

Complain to the FSA.Look at the PPI Conditions.I had some with them and the FSA ruled it had been mis sold.I'm self employed too.It was useless having it.They said I couldn't have the loan without the PPI.