Loan Repayment / Mis-sold Loan?

Discodave

A few years ago I got a loan with Cahoot, and was paying back agreed installments. Last year I needed a little more cash so asked for a loan extension of £1000. At the time Cahoot weren't doing loans anymore, so (last June, 24th to be exact) I went to my bank where a loan was agreed for £6000 at 18.9% APR over 5 years iirc. Paid back Cahoot what I owed, and used extra for the house, etc etc..

However, they would not let me take out the loan without ANY protection. I told them protection was no use to me, and was told, that I would not be given the loan unless I followed what they said.

After consulting with my partner (who agreed about how any protection was useless), I was forced to take Unemployment Protection, (effective after 60 days of current employment) so in the event of me losing my job the loan repayments would be somewhat covered.

So, after due-ress I signed on the dotted line, only to lose my job after 52 days of the loan been agreed/money in bank.

I managed to pay the 1st 1 or 2 months repayments, but afterwards I could not manage this. I called them and asked for a restructure, but was told it had to be in done "in branch"

Went into the branch and was told - sorry Mr X, no can do. Lucky I found my self a temp job (Nov last year) so paid what I could (which wasnt much), and thus found myself falling behind with payments - even thou I was paying £50 a month extra to my agreed repayment.

After several calls a day from the bank (most of which were silent), they have agreed to put my arrears towards the back of my loan account, but only if keep up payments for the next 3 months.

This calls have came as early as 8:02am, right upto 7:30pm, and its just worrying, hassement? and now its getting to a point where I do not wanna switch on the phone.

Can anyone help me?
Have I been incorrectly sold a loan?
Can I get it written off?

orangetrader

With regards to getting it written off, the date you signed is important as it is much more difficult to get a loan written off if it was taken out after April 2007. The law gives courts discretion on loans/c-cards after April 2007 and therefore the outcome of a legal case is much more uncertain.

I would of said that your best bet would be too look at a complaint in relation to being mis-sold the PPI (and claiming back what you have paid in PPI + interest – although this is likely to be offset against what you owe in arrears). You may also be able to make a case to say that some of the current debt problems are as a result of being mis-sold this unaffordable PPI in the first case. The FOS will look at complaints in relation to the loan contract under the Consumer Credit Act – I would be inclined to give them a call, explain the situation and see what they say. Good luck:cool:

~Brock~

orangetraders advice is spot on, but you should be aware that the FOS cannot consider complaints about consumer credit agreements where the event being complained about took place before April 2007, because that is the date that their jurisdiction for such matters took effect.

Discodave

orangetrader wrote: »

With regards to getting it written off, the date you signed is important as it is much more difficult to get a loan written off if it was taken out after April 2007. The law gives courts discretion on loans/c-cards after April 2007 and therefore the outcome of a legal case is much more uncertain.

I would of said that your best bet would be too look at a complaint in relation to being mis-sold the PPI (and claiming back what you have paid in PPI + interest – although this is likely to be offset against what you owe in arrears). You may also be able to make a case to say that some of the current debt problems are as a result of being mis-sold this unaffordable PPI in the first case. The FOS will look at complaints in relation to the loan contract under the Consumer Credit Act – I would be inclined to give them a call, explain the situation and see what they say. Good luck:cool:

cheers for the advice - now can you explain in english! lol sorry.. who are FOS? and who am i calling?

Many Thanks
Dave

~Brock~

Discodave wrote: »

cheers for the advice - now can you explain in english! lol sorry.. who are FOS? and who am i calling?

Many Thanks
Dave

These are the badgers

Discodave

~Brock~ wrote: »

These are the badgers

so, I call and say what?

Im also not sure I can find my original loan agreement

mrcow

Firstly have a look at the links along the top of this page where it says "Reclaim £1000s". There is a step by step guide into PPI reclaiming including template letters.

If you were at any time told that you could not have the loan without the PPI - then you have been missold.

Claim it back. And get the loan refinanced.

Shame on them......name and shame the bank!

18.9% apr is shocking btw.......what were you thinking? And to borrow more than you owed just to "spend it on the house" needs your knuckles rapping. Don't sign anything again! Not without at least running it past this site first!

Discodave

mrcow wrote: »

Firstly have a look at the links along the top of this page where it says "Reclaim £1000s". There is a step by step guide into PPI reclaiming including template letters.

If you were at any time told that you could not have the loan without the PPI - then you have been missold.

Claim it back. And get the loan refinanced.

Shame on them......name and shame the bank!

18.9% apr is shocking btw.......what were you thinking? And to borrow more than you owed just to "spend it on the house" needs your knuckles rapping. Don't sign anything again! Not without at least running it past this site first!

didnt want PPI at all... was made to take SOME sort even thou i'd just started a new job.

mrcow

Then you tell them that they have missold it and get your PPI money back.

Discodave

any chance the loan could get written off?

Apples2

Discodave wrote: »

any chance the loan could get written off?

Are you offering to give them their £6,000 back and put it down to experience??

You could try knocking off the amount you have paid them so far and offer them the remainder of £6,000