Secured loan repayments

leew914

Firstly, sorry for being a little vague as I have to dig out the original loan docs for the specifics. This has been playing on my mind for a few weeks.
We recently recieved our first ever annual(and only) statement from our secured loan lender (GE from memory). We never receive any info from them or any letters at all and we have just discovered that we still owe more than we originally borrowed.
Now I realise that with mortgages and long term loans that the first few years is spent paying off interest, but what is worrying me is that they have been putting the interest rate up and down over the years but never changing our payments so some months the interest is more than the payment.
My way of thinking is that if this carries on we would never pay off the loan. Am I correct and can they do this? I know that the interest rates can change at any time, but surely they should be notifying us and giving us the opportunity to increase our payments.

I will be digging out the original loan docs tonight so I can give more specifics if needed, but any advice will help.

Lee

Let_Us_See

Please provide specific T & Cs otherwise any comment is a complete shot in the dark!

leew914

Ok. I have dug out the loan docs and the T & Cs state that they have the right, but no obligation to change: the amount of our repayment; the number of repayments; the rate of interest.

Does this mean we are stuffed into paying a loan for years and years to be told we still owe the original amount at the end of term?

The main issue for me is that they have failed to inform us of the monthly changes as per our mortgage company and therefor giving us the opportunity to increase our payments.

The loan is with First National - GE money home finance and was taken in May 06.

Lee