Loan repayment question

cathy57

Hi everyone,
I am about to start a DMP with Payplan.They ask me to find out the balance due, on a £20000 Abbey loan I took out in October 2005.So far I have missed the last 3 monthly payments (£329.00 a month).
I was shocked to find out that after 3 years the balance is £20416.29.
How can this be right?
Also,I had a debt of £3066.59 with Amex.They sold the debt to RMA resolve in September 2007.Therefore,I was paying RMA resolve a monthly amount and so far they have received about £500 from me.Again,when I called them to find out the balance,they said I owed £3031.30!
When I questioned why the debt had not gone down,they said they had to pay Amex,interests for 6 months.But then they were quick to offer a settlement figure of £1800,which I of course could not make.
How can this be right?Has anyone there had a similar experience.I would be very grateful for your comments and hepl.Many thanks.

GeorgeUK

Here's one i posted earlier - still none the wiser unfortunately.

GeorgeUK wrote: »

Really not sure about this S.

I'd suggest posting this on the consumeractiongroup forum as they are much more informed when it comes to the legalities. I thought that a DCA could add interest at the original rate, but only in certain circumstances (In your T&C) - and they had to supply statements on request. Not sure why, but 8% interest is ringing a bell - not sure if that's connected to something in the courts (brain too fuzzy right now )


I would also advise requesting a copy of the customer credit agreement (CCA) - especially if the agreement was prior to April 2007.
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flubdub

Is some of it not charges for missing payments? Ask them for a detailed statement from the day you had an account with them. You may need to send them £10 for this information. Im not sure though, hopefully someone else can help?
Send them a CCA request too. Im getting all ours sent off tomorrow, and Im pretty sure thats going to free up a few grand for us.

cathy57

Thank you for your reply.If they were charges,they would really be enormous.I will definatly asked them for a detailed statement and we will see.Many thanks for the advice.

milliemonster

How long was the loan over?, generally they add on all the interest at the beginning of a loan and if it was going to be over 10 years or more then this may explain why it is still so high, also is there any PPI added onto it?, you need to get a detailed statement to find out

cathy57

Thank you for your quick reply.The loan was for 8 years and yes there is a PPI added onto it.I will ask for a detailed statement to find out more.
Also would anyone please know if what RMA resolve did, as I explained above,is normal practice ?