Payment Holiday-Loan

kelsbells99

I have a loan which is due to finish in May. When I originally took the loan I was in fulltime employment, but have since returned to fulltime education. My money is very tight just now and I thought I would be able to apply for either a payment holiday of around 2-3 months or reduce the payments..apparently not!! I have been advised by HBOS that in order to make an arrangement for payment I need to allow the loan to go into arrears and then I will be dealt with by collections!! I have a perfect credit history and have not once missed a payment on this loan...I cannot believe that a bank would advocate such a policy and not offer help to people in this (I am sure) familiar situation. Is this common practise? Does anyone have any experience of this or have any advice as to how I might proceed with this or am I just stuck with the situation??

Any advice would be much appreciated.

Apples2

What surprises me more, is that people seem to think they have a RIGHT not to repay or take payment breaks when they like.

SOME loan companies allow payment breaks, but you really should have investigated that BEFORE taking out the loan.

You shouldn't feel annoyed with anyone but yourself unfortunately.

kelsbells99

Hi ,

Thank you for your opinion, it is certainly valid and I do agree to some extent. I would just like to clarify..I never said I was annoyed and nor did I say I felt I had a RIGHT to a payment break. I clearly stated I was suprised that a bank would rather allow customers to fall into arrears before offering help.

Also, I thought this was a forum to help people...not to vent against others

ILW

kelsbells99 wrote: »

Hi ,

Thank you for your opinion, it is certainly valid and I do agree to some extent. I would just like to clarify..I never said I was annoyed and nor did I say I felt I had a RIGHT to a payment break. I clearly stated I was suprised that a bank would rather allow customers to fall into arrears before offering help.

Also, I thought this was a forum to help people...not to vent against others

What sort of help are you looking for?

kelsbells99

I am just interested to hear if anyone who might have been in the same situation and has had any sucess in achieving a break or reduced payments and if so what they did to achieve it? I realise the chances are slim, but htere is no harm in trying

opinions4u

kelsbells99 wrote: »

I have a loan which is due to finish in May. When I originally took the loan I was in fulltime employment, but have since returned to fulltime education.

A lifestyle choice, presumably.

My money is very tight just now and I thought I would be able to apply for either a payment holiday of around 2-3 months or reduce the payments

Why? What made you think that you could borrow money and then, when it suits, not pay for a few months?

It's a genuine question. I am not aware of any loan facility that offers that sort of flexibility (edit: the list of those that do is growing down the thread - so I hold my hands up on this one!).

A credit card may have the option to drop to a minimum payment. A mortgage may have a payment holiday option subject to terms and conditions being met. But I'm not aware of it on a loan anywhere. Quite happy to be corrected by other posters though.

..apparently not!! I have been advised by HBOS that in order to make an arrangement for payment I need to allow the loan to go into arrears and then I will be dealt with by collections!!

Sorry, but you want to miss payments because you became a student. How did you expect them to react?

Even if they allowed it, there would need to be some part of the company that looks after the process. Collections would seem to be the most obvious place.

I have a perfect credit history and have not once missed a payment on this loan...I cannot believe that a bank would advocate such a policy and not offer help to people in this (I am sure) familiar situation.

Where people have financial difficulties they may agree reduced payments. This would be dealt with by collections. Is that not help?

Is this common practise?

Yes.

Does anyone have any experience of this or have any advice as to how I might proceed with this or am I just stuck with the situation??

You created the situation. You're stuck with it. I think you have been exceptionally naive if you expect a lender to let you off paying for a few months.

I clearly stated I was suprised that a bank would rather allow customers to fall into arrears before offering help.

Agreed arrears is, surely, help. But it will no doubt lead to a factual record being placed on credit referency agency records.

Also, I thought this was a forum to help people

It is. But sometimes help can come in the form of having reality spelled out. There is little point telling you that the big bad bank is being nasty to you. They're not.

Welcome to the real world of banking. Where you sign an agreement saying that you will pay them back every month and they expect you to stick to it.

(Some Halifax loan agreements do allow you to vary the direct debit collection date by 14 days either way. It's possible that this could fit well with when you receive whatever income you have ... effectively buying you what feels like a 1 month payment holiday - just a thought).

The Halifax Web Site is quite specific.

You cannot miss a payment and 'catch up' the following month. If you miss a monthly payment, or are late in making a payment, you will be charged a late payment fee of up to £25 which will be registered with a Credit Reference Agency and could affect your credit rating.

If your loan starts with 7/- 08457 24 34 44 (lines open Mon-Fri 8am-8pm, Sat 9am-6pm)
If your loan starts with 84- 08457 44 44 55 (lines open Mon-Fri 8am-10pm, Sat 8:30am-6pm, Sun 9:30am-5:30pm).

kelsbells99

Hi there,

No, I was made redundant and could not find another job, I decided to return to university so I could retrain instead of signing on. I know that Egg offer this facility for loans, but obviously I have been naive in thinking all banks offered this facility.

Thanks for your honest opinion

opinions4u

kelsbells99 wrote: »

No, I was made redundant and could not find another job, I decided to return to university so I could retrain instead of signing on.

Gotcha!

I know that Egg offer this facility for loans, but obviously I have been naive in thinking all banks offered this facility.

Only for loans taken out before 19th September 2007 (although impressed that you spotted it):

If you applied for your loan before 19 September 2007, you can take up to three monthly payment breaks in any 12 month period. To qualify for this you need to have made your last three payments, in full and on time, and your account must be up to date. To arrange a payment break please phone our Lending Team on 08456 ...

Thanks for your honest opinion

Not always popular, but I try .

good luck!

kindofagilr

God some people on here are awful!

Sorry OP I can offer no advise

But opinions4u - Lloyds offer payment holidays on their loans, so yes there is such a thing.

http://www.lloydstsb.com/loans/repayment_hols_product.asp

CHR15

kindofagilr wrote: »

God some people on here are awful!

I can't see anyone being "awful" in this thread, I just see people saying it "like it is"

The DFW board is full of hugs and cuddles, out here people tend to give good advice, but give it straight.

The OP comes across as having a chip against the uncaring attitude of HBOS, where it isn't the fault of HBOS at all.

54kazdog

What surprises me is that HBOS are not willing to offer a realistic solution No wonder, I suppose, considering the mess they have got themselves in to recently. It beggars belief that the only help you were offered is to default on your loan. Very sensible.

Well OP, just think of all the advice/opinions you have been given by the various luminaries on this site.

Now you know what you should have done!! Really helpful!!!