Writing off a secured loan????????

morgan8080_2

I have secured loan for £35,000 i am struggling to pay, i have arrears and they charge me over £50 a month as i cant pay the arears off yet. I read that if your loan was made before April 2007 it may not be worth the paper its written on. Mine was June 2007 but i feel i was pushed into it and made to believe that it would be a short term solution as i could then put it on my mortgage at a later date as i have equity. I have since found out i have to pay another £$000 and more to pay off early. I was given no cooling off period and i dont even know if the company have a copy of my credit agreement as they went bust and were bought out. Will i stand a chance of fighting it as i am up to my eyes in debt and cant afford my debts and to pay everything ,i am having to offer creditors £1 a month

_Andy_

Secured loans don't have cooling off periods.
Early repayment charges are perfectly legit.
You chose to take the loan up, no-one forced you.

feisty1

First be careful of these companies who are making such claims, the first thing they will ask you for is an upfront fee of £495.00, if you don't have the available cash you could be asked to put it on a credit card.
"Pushed into" a loan, did they come to you or did you go to them?
So many people cry mis-selling once they hit arrears, so please forgive my cynicism if you are a genuine case.
Don't think this will go away take advice from CCCS.
CCCS is a registered charity offering free, confidential advice and support to anyone who is worried about debt freephone helpline 0800 138 1111 or http://www.cccs.co.uk/

morgan8080_2

I have spoke to CCCS.
I was only asking advice on what i had read, thats all.
And Andy that was a little abrupt, dont write things if you cant offer usefull advice. I only asked due to what i had read

feisty1

Maybe you have to consider the other alternatives open to you.
I don't think Andy meant to be abrupt, many of us in the industry are tired of people stating mis selling now they're having difficulties meeting payments.
I am guessing here you responded to either an advert on TV or a newspaper for taking out the secured loan and did not go back to your original mortgage advisor (if you used one) for advice. Sadly, this is the consequences of not taking advice as to what was best for your situation at that time and in the future should rates change, you faced redundancy etc.
It is easy (too easy) for your own head to tell you, you can afford the repayments when your desperate for that loan. But by talking it over with an adviser often they can find alternatives, as I have done on many occasions.
I see situations like yours on a daily basis and normally by that time I have no magic wand to wave.

I am a Mortgage Adviser

You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

morgan8080_2

I didnt take advice at the time, i knew nothing about secured loans and thought i would get a big loan to pay everything off and in a few months i would remortage, but little did i know of the extra money would need to pay out to do this. We now hae lots of arears and inthis economic climate we cant get a remortgage to put this debt away on. We still have about £60k equity but our credit rating is shot now.
I took out the loan through loan makers, they got one with Advantage ( part of morgan stanley) these went bust and was bought and renamed ADV2. They add extortionate amounts of charges each month etc so thought i may have a case to claim some things back or in my wildest dreams hope that the oan could be wrote off.
I think my financial advisor despaired of me when i went back for help a year later, havent been back since then

silvercar

If the charges were not detailed in your loan terms and conditions, they may not be enforceable. The problem is that you have breached terms by not keeping up repayments.

May be worth seeing a mortgage broker to see if the 2 debts can be combined.

morgan8080_2

Our credit rating is very bad now too many defaults, arears on both mortgages thogh main mortage with halifax and they will consolidate after 6 months our arrears

morgan8080_2

also looked at the credit agreement it say on top unregulated credit agreement???? not sure what that means, i think tht its the only one i had and signed.

feisty1

You do really need to see someone instead of just allowing these arrears to mount up, couldn't CCCS offer you advice or a solution?

I would imagine your adviser despaired because you had gone off & done this on yr own without running it past them first

Trollfever

Was this in the document that you signed?

Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.