GE Money loan problems

Newkate

Hi - sorry if this has already been covered, I've had a look through and can't find anything.

I had to take out a loan in 2004 when my boiler died. I was pretty green and also desperate so I went to British Gas and they offered me buy now pay later or take out a loan. As I didn't think I'd have the money "later" either, I took the loan option. I was told that I could either pay around £50 a month for 6 years or £90 a month for 3 years on a loan of just over £2500 at a rate of 9.6% (which was variable so has fluctuated with inflation since but never been above 11%). I asked for a settlement figure about a year ago and found that it was higher than the original loan. I'm slowly getting out of debt (plan is by 2010) and on target so far but this one seems like it will never die! I re-read the paperwork I got after I took out the loan today and found I'm actually signed up for 119 payments of around £50 per month (dependent on interest rates) which frankly, depresses me! I'm not saying I shouldn't repay the loan amount with interest, and I'm not an expert on the miracles of interest, but I think I'll have paid it back at a reasonable rate and then some by 2013/14! Can they do this? If it's all legal then I suppose I just take my medicine and (eventually) own the world's most expensive boiler but if it's not I'd like to knock it on the head please..

calconnor66

Hi I have just been looking for somone who had the same issue as me, . I have stupidly signed up a couple of years for a boiler with british gas. I wondered how you got on. I am not daft but i did not notice nor did the guy show me how long it would be for or he rate, I am looking for the sheet I signed and will take it from there, but what I wanted to knwo was did you get any joy with it
Cal

gadjah543

Have a look at OP's other thread which gives an update.Click on her name then find other posts.

rtho782

I wonder if the reason for this is that the payments were fixed at £50, meaning the rate increase drastically increased the term?

gadjah543

rtho782 wrote: »

I wonder if the reason for this is that the payments were fixed at £50, meaning the rate increase drastically increased the term?

It was the PPI that doubled the loan term