Loan advice

Mrs_H_2009

Hi,

Before he met me my hubby took a loan out with Royal Bank of Scotland a few years ago (approx 2003/04) and was encouraged to lie about his income by the girl who sold him the loan, though obviously he's no proof of this.

The loan was for £2.5k and he managed to make the payments to start with. However, due to the fact he wasn't earning what he was told to put he started to default on the payments. He had a payment agreement in place, I'm not sure how much exactly, but Intrum Justitia are the collection agents.

On all of the documentation they are saying the balance is £8k (for a £2.5k loan!!). He has no idea where his agreement is and no idea what the agreement number is so can't apply to the bank for a copy of it.

Does anyone know where he stands with a) being encouraged to lie and b) how we find out why the total payable is £8k?? OK he defaulted and there will be interest, charges etc but surely that is extortinate?

Any help greatly appreciated.

AverageJoe_4

Has he written to the bank yet and asked for a copy of the agreement? It should be quoted on the letters he gets from DCA (Debt Collection Agent) - or perhaps call them and they should tell him.

Anyhow, write the bank with a SAR (Subject Access Request) there are template leters on the MAIN SITE page - this will allow him to see all the banks records (including the AGreement) that they hold on him, then he'll get the number and the agreement details and with it, all the information on just how this 2.5k loan has turned into 8k.

Go from there and when you get the info either come back on here or better still take all the papers to the Cit Advice.

AJ

Robert_Sterling_3

I am sorry but I can not help on this matter.

BlueAngelCV

I don't think he's got a leg to stand on in regards to lying about his income. Yes he may have been encouraged to but he knew what his income was. It also seems like he should have known that he wouldn't be able to keep up with the payments too if he stopped being able to without any change of circumstance.

Agree that you should write requesting a copy of the agreement (if you don't have the reference they should still be abl to find it). It sounds like they're charging an excessive interest rate which is how it turns out to be £8,000.00. Was he paying small amounts over a long period? If so the total paid will be a lot more than the amount you actually got. Although, I wouldn't expect excessive rates like this from a proper financial institution like RBS.

denibabe

mrs -h - write to the creditors asking them to validate the loan, they have 30 days to do this why they gather the neccassery paperwork and should put the account on hold, make sure you send the letter recorded delivery,about the lie dont admit this as its fraud and guess what you will be the one that gets blamed for obtaining credit knowing it was false figures given.

never-in-doubt

BlueAngelCV wrote: »

I don't think he's got a leg to stand on in regards to lying about his income. Yes he may have been encouraged to but he knew what his income was. It also seems like he should have known that he wouldn't be able to keep up with the payments too if he stopped being able to without any change of circumstance.

Agree that you should write requesting a copy of the agreement (if you don't have the reference they should still be abl to find it). It sounds like they're charging an excessive interest rate which is how it turns out to be £8,000.00. Was he paying small amounts over a long period? If so the total paid will be a lot more than the amount you actually got. Although, I wouldn't expect excessive rates like this from a proper financial institution like RBS.

I agree with the above, this is not right, there is no way that he would struggle in the first place for a 2.5k loan if he was working, I mean for 12 months to borrow 2.5k would be around 300 per month. so straight away you look at 3 years, approx 100 per month, 5 years 75 a month and 7 years would be 50 a month. Assume worse case, he took out 2.5k for 7 years and done it 7 years ago without making a single payment - they debt would still be round the 3 grand mark, not 8 grand!!!

I think he may have told you incorrect details, missold or not something isn't quite adding up here.

Worse case scenario, they have added silly charges (don't worry we can tell you how to get those removed - all of them) but the actual facts just do not add up.

never-in-doubt

denibabe wrote: »

mrs -h - write to the creditors asking them to validate the loan, they have 30 days to do this why they gather the neccassery paperwork and should put the account on hold, make sure you send the letter recorded delivery,about the lie dont admit this as its fraud and guess what you will be the one that gets blamed for obtaining credit knowing it was false figures given.

To be honest i'd be looking to get the loan written off under unenforceability.

OP - Check the back of the agreement when you get a copy for Interim and if the APR and monthly equivalent are not shown come back and i'll guide you to a letter to get the whole lot written off - LEGALLY!

never-in-doubt

Mrs_H_2009 wrote: »

Hi,

Before he met me my hubby took a loan out with Royal Bank of Scotland a few years ago (approx 2003/04) and was encouraged to lie about his income by the girl who sold him the loan, though obviously he's no proof of this.

The loan was for £2.5k and he managed to make the payments to start with. However, due to the fact he wasn't earning what he was told to put he started to default on the payments. He had a payment agreement in place, I'm not sure how much exactly, but Intrum Justitia are the collection agents.

On all of the documentation they are saying the balance is £8k (for a £2.5k loan!!). He has no idea where his agreement is and no idea what the agreement number is so can't apply to the bank for a copy of it.

Does anyone know where he stands with a) being encouraged to lie and b) how we find out why the total payable is £8k?? OK he defaulted and there will be interest, charges etc but surely that is extortinate?

Any help greatly appreciated.

Sorry can I check a few points with you:

1. When was he last in contact, i.e. have they not got in touch for a few years?

2. Is he acknowledging the debt?

3. Was it taken out at the address you share now or his previous? If latter, have the debt people been advised of new address?

Depends on the answers you give, he may be able to have it statute barred