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..

tictax

You signed up for 10 years of payments 4 years ago and haven't realised until now. Yes it's legal - you should have read the agreement before signing it.

Newkate

OK, that reply put me off the whole forum for a while, not very helpful tictax. I'm not trying to get out of paying back what I thought I was borrowing!! Please try to remember that not all loans are sold in nice clear agreements, that only started relatively recently, salesmen will hang around your home for upwards of 4 hours until you don't know which way is up, and the interest calculation some of them point you at requires at least A-level maths and I'm afraid I stopped at GCSE

I have done some more digging, made very necessary by redundancy in January last year as I am now not in a position to pay even the monthly payments I signed up for (aware or not!) I got a helpful letter from the PPI company partway through my insurance claim, telling me my policy expired in October last year. A bit of a cheek since there was a delay on the policy preventing me from claiming straight away. This is also 5 years through the life of the loan and I didn't know the PPI was one of those naughty single premium ones, so the salesman who told me it was a 6 year loan wasn't lying, he just didn't tell me that the PPI would take it up to 10. Possibly his maths is as poor as mine! Anyway, I'm currently hoping that the regulatory changes recommended recently (mentioned by Martin on the main site) will allow me to get something back on this policy seeing as I have not actually had the benefit I thought I would get (obviously with it not even covering the 6 years I *thought* I signed up for!) and GE have now sold my debt to those delightful people at Link Financial.

I am making this post in case there are other people in this position - I'm sure there are! Don't panic and don't give up. And don't be frightened of Link Financial either, it's early days in my dealings there and they are trying to scare me already but I can tell you, like others on these forums, that the courts are not on anyone's "side", they can't and WON'T make you pay anything you can't afford. I have been wrongfully sued by an ex-landlord in the past and when that got to court the magistrate knew exactly what was going on! They have seen it all before, especially with people like Link Financial and can only give away what you give away so make sure you do it by the book and don't guess at the details. Talk to the CCCS or someone like them, they are very useful and know their stuff. Make sure you maintain your agreements, whether that is minimum payments or token payments (like I'm doing), WRITE to them and ask them to put everything in writing and take your phone number off their records.. they probably won't do that but you can screen your calls until they write to you. If you do speak to them, try to stay calm and repeat your request to have things in writing. I can tell you it is far more satisfying to do that and hear the confusion in their voice when you don't panic/shout/cry than doing anything else! You have some weapons at your disposal - staying calm is one of them, it isn't in their script!

I'll keep updating with progress.. hopefully positive news!