Problem with Paragon Personal Finance - PLEASE HELP!!

JPG2001

Hi everyone, I hope that there's someone here who can offer advice about a problem I've had with Paragon Personal Finance, as I've tried many different approaches to resolving this matter without any success.

Let me outline all that has happened:

On 30/01/2004, a loan agreement was fraudulently completed and signed by my ex-partner, to facilitate a secured loan for £32895. The signature on the application is clearly not mine, and I have written confirmation from my ex-partner which states that there was no involvement on my part, and that he assumes full responsibility for the repayment of this loan.

Despite this, Paragon are unwilling to remove my details from the loan account, and repeatedly state that due to their notes suggesting that a phone call may have taken place at the point of the loan being set up (of which I have no recollection), they believe that I knowingly entered into the loan and am therefore liable for repayment.

My first awareness of this loan came on 18 April 2008, after enquiring with Halifax Mortgages to determine the remainder of the equity from our property (which, I have recently found out, was repossessed following 1+ years of mortgage arrears - something else my ex-partner was covering up), as my ex-partner's explanation of the amount seemed inaccurate and arouse suspicion.

Following a discussion with representatives of Paragon, I was advised to approach the Police and obtain a crime reference number. The Police explained that their suggested course of action would be for Paragon to take the matter forward as a dispute between themselves and my ex-partner, with me as a witness to the fraud.

It took a telephone call directly from the Police to Paragon for any investigation to be initiated, as Paragon were unwilling to act upon the conversations with me and my solicitor.

Now, after Paragon's investigation and my subsequent complaint, Paragon have concluded that they are not prepared to make a formal complaint against my ex-partner as they "do not consider fraud to have taken place" based on evidence to hand (the aforementioned telephone call record). From 2 Octoboer 2008, Paragon have ceased communication with me on the matter, other than to request repayments of the outstanding amount.

All I'm looking for is for my name to be removed from the loan account, and for all liability for oustanding balances to be cancelled. I'd also like for them to contact the relevant credit reference agency to 'clear my name' on the matter, as it's put a black mark on my record for something I've not done!

I've been in contact with FOS about the matter, but it has been explained to me that they have no jurisdiction to investigate complaints against Paragon prior to April 2007.

FOS' suggested course of action - to contact FISA or Community Legal Aid - has also not met with any success, as FISA can't get involved with an individual case of this nature, and Community Legal Aid cannot assist.

Paragon's turning a blind eye to the obvious fraud is clearly a decision based on their being more likely to reclaim money from pursuing loan repayments rather than a messy court case! I appreciate that's in their best interest, but it's simply not fair!

Can anyone offer any advice that might allow me to get this matter sorted? It seems so unfair that I can't get any justice - everything seems to be working against me!!

Rafter

I suggest a subject matter request to Paragon asking them for a copy of the telephone conversation that suggests you were a party to this loan.

If they fail to produce it, I suggest you invest no more than £100 in a solicitors letter to paragon asking them to acknowledge the fraud, correct their records and cease persuing you for the debt.

As for whether the part of the loan secured against your share of the house is invalid, that is also probably something for a solicitor, but if you have genuinely been a victim of fraud and paragon have not made sufficient checks of your identity etc then you might be entitled to some money.

Good luck

R.

Warner2009

I took out a loan way back in the 80's with Universal Credit for £5k I paid this off in full with Universal and then took out a second loan for £7,500 with Universal. Not long after this Paragon took over their books and wrote to me out of the blue to say they now owe the debt. I thought nothing of this and carried on paying my usual amount via direct debit of approx £284.00. Then in approx 2002 I fell into financial difficulty and spoke to all my creditors to let them know this and I completed a large spreadsheet showing all creditors names, the balance I owed them and how much I proposed to pay them all on a monthly basis relevant to the amount outstanding, I also requested that the interest be stopped or reduced in view of my circumstances. Every one of my creditors were very understanding considering I owed in total 7 years ago at least £50K. I spoke to Paragon on the 'phone and they agreed verbally to credit my interest back and reduce the interest rate if I re-instated my direct Debit at my original Universal Credit monthly instalments of £67.82 which I did, I calculated this year that I probably only owe them now approx £2K or £2,500 maximum and then the letter dropped on the door mat, bearing in mind I have had no communication with them for 6 years or more, it said as follows:-
This statement relates to the period from 01/10/08 to 01/10/08
Date of first movement on your account 12/10/1988
Duration of your agreement as provided in the agreement = 5 years
Amount of credit provided under your agreement = Unknown
Opening balance of your account on 30/09/08 = £15,858.49

This surely is absolutely outrageous?? that I could suddenly owe this much when they are saying in black & white that the amount provided to me under the agreement is Unknown??
Can anyone please advise me of what they think? any help would be greatly appreciated.

petermb_2

Warner2009 wrote: »

I took out a loan way back in the 80's with Universal Credit for £5k I paid this off in full with Universal and then took out a second loan for £7,500 with Universal. Not long after this Paragon took over their books and wrote to me out of the blue to say they now owe the debt. I thought nothing of this and carried on paying my usual amount via direct debit of approx £284.00. Then in approx 2002 I fell into financial difficulty and spoke to all my creditors to let them know this and I completed a large spreadsheet showing all creditors names, the balance I owed them and how much I proposed to pay them all on a monthly basis relevant to the amount outstanding, I also requested that the interest be stopped or reduced in view of my circumstances. Every one of my creditors were very understanding considering I owed in total 7 years ago at least £50K. I spoke to Paragon on the 'phone and they agreed verbally to credit my interest back and reduce the interest rate if I re-instated my direct Debit at my original Universal Credit monthly instalments of £67.82 which I did, I calculated this year that I probably only owe them now approx £2K or £2,500 maximum and then the letter dropped on the door mat, bearing in mind I have had no communication with them for 6 years or more, it said as follows:-
This statement relates to the period from 01/10/08 to 01/10/08
Date of first movement on your account 12/10/1988
Duration of your agreement as provided in the agreement = 5 years
Amount of credit provided under your agreement = Unknown
Opening balance of your account on 30/09/08 = £15,858.49

This surely is absolutely outrageous?? that I could suddenly owe this much when they are saying in black & white that the amount provided to me under the agreement is Unknown??
Can anyone please advise me of what they think? any help would be greatly appreciated.

I have had dealings with this company on behalf of clients before.
first this is send in a request for a copy of the original agreements under section 77 of the consumer credit act. if you pm me I will provide you with a template letter.
You could also ,as Rafter said, also SARN them for the rest of the information they hold on you.

The chances are that 1) they wont be able to provide you with an original agreement that makes the loan unenforceable and 2) if they do provide a copy of the agreement it will be faulty anyway and will again be unenforceable.

fermi

petermb wrote: »

first this is send in a request for a copy of the original agreements under section 77 of the consumer credit act. if you pm me I will provide you with a template letter.

The letter is here:

CCA request - Getting a copy of your credit agreement and account details.

Link to factsheet: Factsheet | Getting a copy of your credit agreement, account details and a statement of account.

Link to online version: Sample letters | Letter if you want a copy of your credit agreement and/or a statement of the account and the creditor has so far refused to send you a copy free of charge.

(Your home address)

Date:

To:

Dear Sir/Madam

Account No: _____________________________

With reference to the above agreement, I/we would be grateful if you would send me/us a copy of this credit agreement and a full breakdown of the account including any interest or charges applied. I/we understand that under the Consumer Credit Act 1974 [sections 77-79], I am/we are entitled to receive a copy of any credit agreement and a statement of account on request.

I/we enclose a payment of £1 which represents the fee payable under the Consumer Credit Act 1974.

I/we understand a copy of any credit agreement along with a statement of account should be supplied within 12 working days.

I/we understand that under the Consumer Credit Act 1974 creditors are unable to enforce an agreement if they fail to comply with the request for a copy of the agreement and statement of account under these sections of the Act.

I/we look forward to hearing from you.

Yours faithfully


Print your name, don't sign.

petermb_2

JPG2001 wrote: »

Hi everyone, I hope that there's someone here who can offer advice about a problem I've had with Paragon Personal Finance, as I've tried many different approaches to resolving this matter without any success.

Let me outline all that has happened:

On 30/01/2004, a loan agreement was fraudulently completed and signed by my ex-partner, to facilitate a secured loan for £32895. The signature on the application is clearly not mine, and I have written confirmation from my ex-partner which states that there was no involvement on my part, and that he assumes full responsibility for the repayment of this loan.

Despite this, Paragon are unwilling to remove my details from the loan account, and repeatedly state that due to their notes suggesting that a phone call may have taken place at the point of the loan being set up (of which I have no recollection), they believe that I knowingly entered into the loan and am therefore liable for repayment.

My first awareness of this loan came on 18 April 2008, after enquiring with Halifax Mortgages to determine the remainder of the equity from our property (which, I have recently found out, was repossessed following 1+ years of mortgage arrears - something else my ex-partner was covering up), as my ex-partner's explanation of the amount seemed inaccurate and arouse suspicion.

Following a discussion with representatives of Paragon, I was advised to approach the Police and obtain a crime reference number. The Police explained that their suggested course of action would be for Paragon to take the matter forward as a dispute between themselves and my ex-partner, with me as a witness to the fraud.

It took a telephone call directly from the Police to Paragon for any investigation to be initiated, as Paragon were unwilling to act upon the conversations with me and my solicitor.

Now, after Paragon's investigation and my subsequent complaint, Paragon have concluded that they are not prepared to make a formal complaint against my ex-partner as they "do not consider fraud to have taken place" based on evidence to hand (the aforementioned telephone call record). From 2 Octoboer 2008, Paragon have ceased communication with me on the matter, other than to request repayments of the outstanding amount.

All I'm looking for is for my name to be removed from the loan account, and for all liability for oustanding balances to be cancelled. I'd also like for them to contact the relevant credit reference agency to 'clear my name' on the matter, as it's put a black mark on my record for something I've not done!

I've been in contact with FOS about the matter, but it has been explained to me that they have no jurisdiction to investigate complaints against Paragon prior to April 2007.

FOS' suggested course of action - to contact FISA or Community Legal Aid - has also not met with any success, as FISA can't get involved with an individual case of this nature, and Community Legal Aid cannot assist.

Paragon's turning a blind eye to the obvious fraud is clearly a decision based on their being more likely to reclaim money from pursuing loan repayments rather than a messy court case! I appreciate that's in their best interest, but it's simply not fair!

Can anyone offer any advice that might allow me to get this matter sorted? It seems so unfair that I can't get any justice - everything seems to be working against me!!

Do you have a copy of the loan Agreement?
Did you use a broker to get the loan?
did you add in PPI?

Sky12

petermb wrote: »

I have had dealings with this company on behalf of clients before.
first this is send in a request for a copy of the original agreements under section 77 of the consumer credit act. if you pm me I will provide you with a template letter.
You could also ,as Rafter said, also SARN them for the rest of the information they hold on you.

The chances are that 1) they wont be able to provide you with an original agreement that makes the loan unenforceable and 2) if they do provide a copy of the agreement it will be faulty anyway and will again be unenforceable.

The above is just too familiar, BUT don't let these people bully you. I ended up on 'Watchdog' back in 2003/4, with a similar tale to tell. The result for me was positive - they backed down and said I only owed them the original Universal Credit balance of £1,800 and not the £10k they had added on top and had been badgering me to pay (I was unable to work and on sickness benefits for several years). The letter said in writing this was my full liability and I could continue to pay at a rate of £1 pcm until paid off.

I have continued the payments until I ran out of payment slips in August this year and wrote to them asking for a replacement book but got no response. Then about 4 weeks ago I started to get letters from them with the usual old threat of having the 'right to reinstate interest' (presumably the £10k they quite fancy bullying out of me). I've ignored it all since it is now just over 6 years since I last heard from them and, frankly, I have bigger fish to fry being in Debt Management right now.

It seems Paragon have the sticking power of superglue, and once they have your name your debt and your address they will hound you.

Despite promises made by the government following the 'Watchdog' programme it seems these parasites still have licence to operate. Maybe another pounding on 'Watchdog' might help?

Angela_Pitman

I have been struggling with this company since 1996!!
In 1989 my now ex-husband and myself purchased the above property in December of 1989 after serving abroad in the armed forces, in 1991 we re-mortgaged the property through National Home Loans to make improvements on said property in preparation for renting out while we were posted abroad, several months after leaving the forces in 1994 my husband and I separated and then divorced in 1996, I stayed in the property as agreed by the courts as my husband had kept a large redundancy payment, I maintained the mortgage payments for several months but a long standing health problem worsened and my employment was terminated, I contacted National Home Loans (NHL) and an agreement was made that the interest would be frozen and I could make reduced payments by way of a monthly Standing Order, the DWP also made regular payments in connection with the interest rates.
All went apparently well for several years until I began receiving telephone call of a rather bullying and intimidating nature from the mortgage company, I increased the amount of the payments whenever possible and in 2000 I felt that the situation of the debt increasing could no longer go on, I contacted a friend who was also an independent financial advisor and between us tried to resolve the situation, correspondence to NHL were largely ignored by them, help from various professional bodies was unfortunately turned down as NHL were not regulated by the Financial Services Authority and so in 2002 everything ground to a halt.
In 2007 I once again tried to sort out this problem and contacted CAB who put me in touch with a solicitor who specialises in these issues, (I should add that in the time between 2002 & 2007, other than the usual mortgage statements, at no time did NHL contact me), yet again, despite frequent correspondence from my solicitor, the time scale in responding was excessive, thus drawing out the whole situation and causing a great deal of stress and worry.
An original mortgage of £31.000 has escalated so much as it was discovered following a telephone conversation in about 1999 that they never actually froze the interest rates as stated in 1996, that the arrears are now in excess £117.700. The contractual monthly payment from April 2011 is £2,470.43, which has suddenly increased without warning by £544.83 from the month before! As the current interest rate is only 0.05% I am completely baffled as to how they can reach this figure. I have no idea what Paragon Finance Finance’s current interest rates are as their monthly statements do not show their interest rate, when I questioned them about this, the reason they gave was, “it is not their policy to do so on monthly statements”.
I should also point out that the property is a simple two bedroomed terraced house (one single, one double) with no front garden, no parking and a small back yard.
I feel as though NHL are happy to sit back and watch the amount escalate and each time an attempt is made by myself to resolve the problem the only brick wall I keep hitting is the company themselves, if I contact them myself I am met with often rude and bullying people at the other end of the line or simply a refusal to forward any information.
I have looked at several options to resolve this problem including the Mortgage Rescue Scheme and yet again it took NHL 11½ months to respond to the housing solutions officer which meant my file simply sat on a desk awaiting their response despite repeated requests from the housing solutions officer, one response he received was simply photo copies of letters he had sent with a date stamp and the word ‘received’ written on them!
I am at a loss as to how to deal with this company. I am also very stressed and fearful that I will lose my home despite having made every effort to communicate and work with them.

I have just written to Watchdog after hearing that Paragon were featured on there several years ago and am hoping that they will be able to help, I feel as though this company needs to be taken to task and prevented from trampling all over people who they have trapped in their snares.