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Unfair loan issues ongoing
nev5
Posts: 18 Forumite
I was advised to put this post here as I had ut it in the wrong place.
Just to set you in the picture i took out a loan 3 years ago 5K over 3 years including interest it would work out total payment of £6820.
Not a problem at the time as it was to set up being self employed and the payments were easily managable.
I was also presured to take out the ppi as i was self employed and i would benifit more if anything happened. I refused several times but in the end i took it out. They said being self employed it is a must have.
3 months into the agreement i lost the contract and had no other work, for 4 weeks i didnt have a penny comming in and i couldnt claim benifit. I tryed so hard to get it to work but it didnt work out and eventually I either had food or paid the next installment, thats how bad it got.
I called the company and explained the situation and they said i had to pay the installment.
I called the insurance I had taken out and explained that i needed to use it as my situation had needed it.
To my shock I wasnt able to claim as I was self employed. I was shocked as id been paying the top wack of 36 per month for the insurance.
I thought ok if thats not valid then i need to be refunded as i could pay the mised instalment with it and i could get another job by the next and everything would be fine.
That wasnt going to happen as they wouldnt refund it even though they had miss sold it.
anyway I called the loan company again and told them what had happened and begged them for a break, seeing it was them that sold it in the first place.
No they wanted all the loan in one go including interest as I had broke the conditions by missing now the second payment.
I went to citizans advise and they had a meeting with me, called a few people and spoke to creditors for me.
They didnt get anywhere but i got lots of emails back from companies saying they can help.
Spectrum came up and looked like they could halp me out so i called and arranged an appointment.
They were great at first and it looked like as long as i followed the rules I would be ok in 5 years debt free.
They wanted an initial payment of £600 which would set the ball rolling then installments every month to distrobute to the creditors.
they said the debt would be frozen and this would give you time to save some cash to offer them and pay it off.
This all sounded great so i set about selling my houshold posessions to get the money.
Sorted, sent the money and filled in all the necessery forms.
Ive now been paying them 24 pound a month for 3 years and had some money saved not enough to offer but it seemed to be working.
UNTIL a few weeks ago I recived a letter from the loan company, first letter I had recieved in 3 years, your total repayment now stands at £8760, bearing in mind ive been paying them 24 a month and initial cost of setting it up.
Not impressed I called them asking why they sent a letter with intrest still being added to it, they said they never asked to stop the interest ans that they never said they would. (which was the main point of this whole thing to allow me to save and catch up).
So far in 3 years I've given them approx £1500 and all they have done is give the creditor £36 and sent an initial letter, NOTHING else!
Now I owe just under 9k and i still have my student loan and my credit card.
I feel like Ive worked so hard for 3 year paying off this debt only to owe more and it all being a waste of time..
In the mean time Ive been very ill stress related and had surgery and recovery time which i couldnt earn much at all.
Im back to the point now of not knowing when im going eat the next time, I owe the land lord and im over drawn, I just cant see a way out and its all over a one little payment from loosing my work.
Is there anyone can advise me, Ive called debt lines and they all seem to want money, I am working at the moment but just thats not covering much at all. I dont know how long I can go for.
I have herd about the miss sold subject on loans, do I stand a chance there, can I claim moey back from spectrum as they havent done what they said they would do?
Just to set you in the picture i took out a loan 3 years ago 5K over 3 years including interest it would work out total payment of £6820.
Not a problem at the time as it was to set up being self employed and the payments were easily managable.
I was also presured to take out the ppi as i was self employed and i would benifit more if anything happened. I refused several times but in the end i took it out. They said being self employed it is a must have.
3 months into the agreement i lost the contract and had no other work, for 4 weeks i didnt have a penny comming in and i couldnt claim benifit. I tryed so hard to get it to work but it didnt work out and eventually I either had food or paid the next installment, thats how bad it got.
I called the company and explained the situation and they said i had to pay the installment.
I called the insurance I had taken out and explained that i needed to use it as my situation had needed it.
To my shock I wasnt able to claim as I was self employed. I was shocked as id been paying the top wack of 36 per month for the insurance.
I thought ok if thats not valid then i need to be refunded as i could pay the mised instalment with it and i could get another job by the next and everything would be fine.
That wasnt going to happen as they wouldnt refund it even though they had miss sold it.
anyway I called the loan company again and told them what had happened and begged them for a break, seeing it was them that sold it in the first place.
No they wanted all the loan in one go including interest as I had broke the conditions by missing now the second payment.
I went to citizans advise and they had a meeting with me, called a few people and spoke to creditors for me.
They didnt get anywhere but i got lots of emails back from companies saying they can help.
Spectrum came up and looked like they could halp me out so i called and arranged an appointment.
They were great at first and it looked like as long as i followed the rules I would be ok in 5 years debt free.
They wanted an initial payment of £600 which would set the ball rolling then installments every month to distrobute to the creditors.
they said the debt would be frozen and this would give you time to save some cash to offer them and pay it off.
This all sounded great so i set about selling my houshold posessions to get the money.
Sorted, sent the money and filled in all the necessery forms.
Ive now been paying them 24 pound a month for 3 years and had some money saved not enough to offer but it seemed to be working.
UNTIL a few weeks ago I recived a letter from the loan company, first letter I had recieved in 3 years, your total repayment now stands at £8760, bearing in mind ive been paying them 24 a month and initial cost of setting it up.
Not impressed I called them asking why they sent a letter with intrest still being added to it, they said they never asked to stop the interest ans that they never said they would. (which was the main point of this whole thing to allow me to save and catch up).
So far in 3 years I've given them approx £1500 and all they have done is give the creditor £36 and sent an initial letter, NOTHING else!
Now I owe just under 9k and i still have my student loan and my credit card.
I feel like Ive worked so hard for 3 year paying off this debt only to owe more and it all being a waste of time..
In the mean time Ive been very ill stress related and had surgery and recovery time which i couldnt earn much at all.
Im back to the point now of not knowing when im going eat the next time, I owe the land lord and im over drawn, I just cant see a way out and its all over a one little payment from loosing my work.
Is there anyone can advise me, Ive called debt lines and they all seem to want money, I am working at the moment but just thats not covering much at all. I dont know how long I can go for.
I have herd about the miss sold subject on loans, do I stand a chance there, can I claim moey back from spectrum as they havent done what they said they would do?
0
Comments
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you can try cccs and payplan are some of the free debt charities, i think- someone will be along with more help soon on that.
If you search 'reclaiming ppi' on the main site it will come up with the link to reclaim the mis-sold insurance.0 -
Is there anyone can advise me, Ive called debt lines and they all seem to want money, I am working at the moment but just thats not covering much at all. I dont know how long I can go for.
I have herd about the miss sold subject on loans, do I stand a chance there, can I claim moey back from spectrum as they havent done what they said they would do?
The following organisations are fee-free: CAB, CCCS, Payplan, National Debtline and (if there's one near you) CAP. Spectrum (clearly) are not fee-free.
Check your agreement with Spectrum. Does it say that they guarantee to freeze interest? It would be stupid if it did as a dmp is an informal agreement and they would be holding themselves hostage to fortune.
It does sound like you were missold ppi though - use Martin's guide to reclaim.0
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