Secured Loan Charges -

me_me_3

Help!
We have a secured loan - towards the end of last year due to circumstances beyond our control we fell behind on our repayments. we informed te company immediatey and set up a repayment plan with them for the arrears (paying £50 extra per month).
We are just under 2 months behind in payments, and have now been told that although each month we are paying this extra £50 that it's not getting us anywhere as they are charging us £50 per month for being in arrears.

We thought that if you were up front with the loan company and set up arrear clearing plans with them (and of course stuck to them) they would not charge? ? ?

Can anyone enlighten us? Are we going to be in arrears forever by only paying an extra £50?

£50 seems alot to be charged when in arrears for so little compared to most and when we are dedicated to paying it off?

Thanks you.

petermb_2

me_me wrote: »

Help!
We have a secured loan - towards the end of last year due to circumstances beyond our control we fell behind on our repayments. we informed te company immediatey and set up a repayment plan with them for the arrears (paying £50 extra per month).
We are just under 2 months behind in payments, and have now been told that although each month we are paying this extra £50 that it's not getting us anywhere as they are charging us £50 per month for being in arrears.

We thought that if you were up front with the loan company and set up arrear clearing plans with them (and of course stuck to them) they would not charge? ? ?

Can anyone enlighten us? Are we going to be in arrears forever by only paying an extra £50?

£50 seems alot to be charged when in arrears for so little compared to most and when we are dedicated to paying it off?

Thanks you.

Sadly you seem to get kicked when you are down with these companies.

My own view would be to look at the loan and see if there was anything that can be challenged. If there is it may well get you into a better bargaining position or better still, reduce the amount you currently owe.

adtheblue

I suggest that you write a letter of complaint which they will have to reply to under FSA guidelines. Once they have replied and assuming they dont give you the response you are looking for, you shoud write a letter to the Financial Ombudsman Service detailing everything you've done and what the lender has said (address will be on the web). Make sure you copy the letter to FOS to the loan company. There has been a 'super complaint' by the Citizen's Advice Bureau about bank charges which has been upheld. This means that all the banks will have to repay £millions to customers and also stop overcharging people like you.

Persevere and you will win - Good Luck!

adtheblue

see also the Reclaim Bank & Credit Card Charges thread!

me_me_3

Many thanks to you all.
I am now in the process of writing to the company regarding these monthly charges, and although I am not holding out much hope of a decent reply from them I am willing to fight this all the way.

Thanks again