Secured Loan

whipped

I wonder if someone can give me some advice please on a problem regarding a loan that I have. Due to financial difficulties I am in 2 months arrears.


This is a variable interest rate loan, to be honest I do not know if it is an interest or repayment loan either. My installments have not come down as it is an unregulated loan. Why is these payments that I have made not come off the balance that I originally borrowed. I know I have been charged penalties for arrears and letters.
I am on a 9.80% rate.
Could someone please explain why my balance is so how even after I have paid £3,000
Thanks for reading

jonesMUFCforever

Why did you take out a secured loan for such a small amount?
Is this small loan and your main mortgage with the same lender?

If so the figure of £38k+ may be the total amount outstanding?

If not I would query first with the lender then the CRA.

whipped

Thanks jones,

No my mortgage is not with the same lender. I have asked my lender and they do not feel it necessary to answer my questions. My mortgage is with GMAC.
Should I ask the secured lender how much balance is owed and why have no deductions been made even though I have been paying?

jonesMUFCforever

whipped wrote: »

Thanks jones,

No my mortgage is not with the same lender. I have asked my lender and they do not feel it necessary to answer my questions. My mortgage is with GMAC.
Should I ask the secured lender how much balance is owed and why have no deductions been made even though I have been paying?

Yes I would do that.
It might just be their accounting system and when you contact them they will be able to reassure you.

whipped

Thanks again

anotherpaul_2

whipped wrote: »

Should I ask the secured lender how much balance is owed and why have no deductions been made even though I have been paying?

I'd ask them for a full statement of account, which should show the updated balance after each of the payments, and any fees and charges.

They may have deliberately set the repayments low so that you never (or extremely slowly) pay back the loan. While you're struggling to make payments, this might be beneficial, but in the long run it would be better to pay more when you can.

whipped

Thanks anotherpaul I have written to the Lender and have just asked them for a balance. You have advised that I should ask them for a statement of account, this I will do today.

thanks for your great advice

regards

whipped

whipped

I have a secured loan with Finance and they have charged to my account 9 X £35

whipped

Anyone got a clue what I should do please?

jonesMUFCforever

Get legal advice from CAB.

The fact that you are now up to date does not stop them charging you these fees when they occur.

I would take with a pinch of salt what they say about not being regulated by anybody (they will be).

After seeing CAB write a formal letter of complaint stating that you will take your case to the Ombudsman if needs be.
A sensible company will see that it will be cheaper to refund you because every referral will cost the company a minimum of £400.

whipped

Thanks jones for your reply and advice. I will write out a letter and ask them to refund me the charges and see what they write back,

ta