Paragon

SharonM

Ok, back in 1998 we took out a loan with Universal Credit for £15,000 sadly we got in a bit above our heads financially, so in 1999 took on the help of Eurodebt. We stayed with them for 2 years, then continued with the payments they set up. It's now almost 10 years since we started and after paying UC nearly £22,000 back thought it must be near an end.

How wrong could we be, checked our balance and it's now £40,000+ The agreement with UC was to freeze the interest, Eurodebt had all the letters as they were dealing direct with them, now Paragon have taken over UC, so although our bank statements say we're paying UC it's actually going to Paragon.....and it's them that have continued to add the interest on :mad:

At the rate it's going, we are going to be dead and buried with a huge debt still over us, which I don't want passing on to our children, the debt is bigger at the end of each year than it was at the start even after us paying off over £2000 a year.

Is there anything we can do, I tried contacting Eurodebt today and they said everything related to our case was now destroyed, so we have nothing to back us up.

Any suggestions please

~Beanie~

Who are Eurodebt, are they some kind of debt management company?

What have you been paying for 10 years, the monthly repayment that was agreed at the outset (with UC) or a reduced payment that was agreed with Eurodebt?

If the latter, you may find that Eurodebt have been adding late payment fees and all kinds of interest charges due to you not sticking to the original agreement. Who said they UC would freeze the interest? Debt management companies can ask than lenders do this but they are not obligated to actually do so.

How long was the original loan over, how much should the repayments have been and what have you actually been paying?

SharonM

Eurodebt are a debt management agency, the original loan was over 5 years at just over £300 a month, we are now paying £180. When the agreement was set up, Universal Credit agreed to freeze the interest, but as soon as Paragon took over they started adding the interest again.

petermb_2

I have a case running exactly like this against Paragon.
My client ended up with a debt of £185,000 after borrowing just £8000.
Nice people eh?

rbscoundrels

SharonM wrote: »

Ok, back in 1998 we took out a loan with Universal Credit for £15,000 sadly we got in a bit above our heads financially, so in 1999 took on the help of Eurodebt. We stayed with them for 2 years, then continued with the payments they set up. It's now almost 10 years since we started and after paying UC nearly £22,000 back thought it must be near an end.

How wrong could we be, checked our balance and it's now £40,000+ The agreement with UC was to freeze the interest, Eurodebt had all the letters as they were dealing direct with them, now Paragon have taken over UC, so although our bank statements say we're paying UC it's actually going to Paragon.....and it's them that have continued to add the interest on :mad:

At the rate it's going, we are going to be dead and buried with a huge debt still over us, which I don't want passing on to our children, the debt is bigger at the end of each year than it was at the start even after us paying off over £2000 a year.

Is there anything we can do, I tried contacting Eurodebt today and they said everything related to our case was now destroyed, so we have nothing to back us up.

Any suggestions please

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PW