Loan mislead!!!

MissBYorkshire

If anyone can help with advise it would be appreciated.

I had a loan with IF for 10,000 set over 5 years. Last year due to a break up I rang IF and asked if I could extend my years I had been paying the loan 2 1/2 years by this time.

They did so and it lowered my monthly payments.

It has only dawned on me when I have telephoned this morning for a settlement figure that when they extended my loan, they actually closed the original loan and set up a new one spread over another 5 years so I have been paying interest only all over again and for 3 years now but I was not notified of this I was under the impression it was still the same loan and it was years they were extending not a new loan completely.

3 years on and I owe more than what I did last year!!!

CLAPTON

without any numbers its impossible to say what happened... but it may well be the case that they increased your APR when you extended the loan.
did you take out PPI?

Peeky

From past experience and the obvious i didnt think loans could be extended unless they were of the "flexible" type.

When a term is changed the old loan in 99.999999999% of cases is paid up (sometimes with a penalty) and a new loan started for the date it was approved. I am shocked as almost no one on here reads their loan agreements!

Besides isnt this all completely obvious?

MissBYorkshire

Maybe completey obvious to someone like you. I came on here for advise not wise cracks from smart !!!!!!.

Peeky

Did you read your loan documents?
What did they say?

j2009

Generally speaking (as explaind above) extending a loan means you cancel the old one and get a new one for the term you require. The new loan could be at a different APR.

Are you ceratin that your current loan balance is actually higher than it was last year? The reason I ask is you may have been given a settlement figure last year but the figure you are seeing now is a 'total repayable' which will include all the interest you will pay between now and when you pay it off in the future. I recommend you call the loan provider and ask for a settlement figure.

Also, just to be clear even if you loan is at a higher APR the settlement balance shouldn't be higher than the amount you extended the loan for last year; unless you have incurred fees for late payment or taken insurance on your new loan. It is possible you incurred a early cancellation fee for your previous loan but assuming it's a five year loan and you did all this ~12months ago then the balance should now be lower than the final settlement figure that you extended.

I hope this helps a little

Freddie_Snowbits

MissBYorkshire wrote: »

Maybe completey obvious to someone like you. I came on here for advise not wise cracks from smart !!!!!!.

With remarks like that, what advise do you want?

RobertoMoir

MissBYorkshire wrote: »

Maybe completey obvious to someone like you. I came on here for advise not wise cracks from smart !!!!!!.

someone else who asks for advice and gets shirty when the advice contains things they didn't want to hear. big surprise.

Tiddlywinks

MissBYorkshire wrote: »

If anyone can help with advise it would be appreciated.

I had a loan with IF for 10,000 set over 5 years. Last year due to a break up I rang IF and asked if I could extend my years I had been paying the loan 2 1/2 years by this time.

They did so and it lowered my monthly payments.

It has only dawned on me when I have telephoned this morning for a settlement figure that when they extended my loan, they actually closed the original loan and set up a new one spread over another 5 years so I have been paying interest only all over again and for 3 years now but I was not notified of this I was under the impression it was still the same loan and it was years they were extending not a new loan completely.

3 years on and I owe more than what I did last year!!!

Is this a wind up?

On the face of it, you re-financed and didn't read the agreement.... I suggest you find it, make a cuppa and then have a good read. What you find should answer your questions.

BTW, you might get more help if you lose the "attitude" when someone tells you something you don't agree with.

R0bert_Sterling

MissBYorkshire wrote: »

Maybe completey obvious to someone like you. I came on here for advise not wise cracks from smart !!!!!!.

You'd do well to listen to the Wise and the Smart, they could have stopped you blundering from one mistake to another in blissful ignorance.

_Andy_

In short, "I took a new loan out and didn't bother to listen or read about the interest rate. I just signed it. It is obviously the lender's fault. Boo hoo."