The Most Shocking CCA Ever Constructed

planning_ahead_2

Hi lookingforjustice

I have dropped in and read your posts from the first day you posted, but always gave up as the posts were so long and confusing. Long posts aren't a problem, there are lots of them on here (some of my own included I suspect:)).

If you want help and advice you really need to break the post down into rational, manageable pieces - eg as suggested by Poosmate.

I am guessing as you talk of 25 year loan period that you are talking about a secured loan, and therefore it could be that the lender can vary the rate. It would help if you made that clear.

I am sure you are feeling frustrated that you haven't managed to get your point across on here yet, but if you post more information in the way mentioned by Poosmate hopefully that will be a start.

What I think I have worked out from your post is the following

Loan type: secured
Loan period: 25 years
Original loan amount £36,000
% rate at start of loan: 8%
Monthly repayment at start of loan: £260

Is any of that correct? If it is - we also need to know if the rate was fixed for any period, eg introductory period, or for the whole life of the loan, or is it just a variable rate and if so did it have to follow anything like LIBOR or BoE base rate.

I am confused as to why you think the lender couldn't add interest at the start of the loan and before you paid your first month's payment. It sounds to me as though you think that if you borrowed £36,000 and paid the first payment of £260 that you would then only owe £35,740 . However, interest would accrue from the day you took the loan.

By my calculations - if you borrowed £36k and paid £260 repayment in month one - you would only have actually paid off £20 of the capital of your loan in month one and the balance carried forward to month two would be approx £35,980. So although you didn't pay very much off the capital, you did pay some - and your account was not at that point in arrears - yes when you made your first payment you actually owed more than you borrowed, but this is normal with loans and the capital will not reduce very much until you are nearer the end of the loan period.

I can't see that the lender put you into arrears by placing an interest charge during the first month of the loan which is what I think you believe is what happened.

immoral_angeluk

I've read through that all and I can't make head nor tail of it. Sorry.

planning_ahead_2

immoral_angeluk wrote: »

I've read through that all and I can't make head nor tail of it. Sorry.

do you mean my last post:o

Poosmate

Looking4Justice, how can you possibly say that this company put you into arrears from the first month? Please do the maths again:

Your loan is £30,000 in month 1. You are charged £220 in interest in month 1. You make a payment of £260 in month 1.

The £260 you pay in month 1 covers the £220 interest and £40 off the original loan.

In simple terms, at the begining of month 2 your loan is £29,960

This loan would only be void (according to you) from the start if the balance at the end of month 1 and the beginning of month 2 was over £30,000 which it wouldn't be because you've paid more than the interest charged to it.

I really don't think you have a leg to stand on.

Planning Ahead, I put the figure of 8% as an example. There is no mention of rate of interest from the OP or if it was fixed or variable.


Seriously Looking4justice, you will get the help and support you need if your posts make sense. At the moment the only shocking thing about this thread is the length and content of your posts. The only thing you are achieving at the moment is making this look like a wind up rather than someone who really needs help.

I know you must be frustrated, but please, take a break and repost the facts only as has already been requested several times.

Hope that helps

Poo

planning_ahead_2

Poosmate wrote: »

Planning Ahead, I put the figure of 8% as an example. There is no mention of rate of interest from the OP or if it was fixed or variable.

Hi Poo

OP did mention 8% in the paragraph under Point 2 of first post.

I guessed £36k as the loan figure because the OP wrote

"balance is £14k higher then start of agreement ........................................£36k + £14k = £50k"

It's very difficult to work out exactly what the original loan and agreement were for, let alone the issues that looking4justice has with the lender/interest/documents.

Poosmate

planning_ahead wrote: »

Hi Poo

OP did mention 8% in the paragraph under Point 2 of first post.

I guessed £36k as the loan figure because the OP wrote

"balance is £14k higher then start of agreement ........................................£36k + £14k = £50k"

It's very difficult to work out exactly what the original loan and agreement were for, let alone the issues that looking4justice has with the lender/interest/documents.

Yes I see now. Thanks. As you will see from the time I posted it was very late last night (or very early this morning!) so brain wasn't working at it's best!

Thanks

Poo

looking4justice

right will post up statement as definately not a wind up ,.. before first payment was due a interest charge hit the balance ,.. and that put me into arrears ,.. my payment were capital and interest ,.. so no interest should be added to balance before first payment due ,.. and my monthly payment covers the interest aspect along with capital ,.. every month there after an interest charge was placed, which increased the balance (yoyo account is a better word to put it) , so over the full time period 84 interest charges , loan 84 months old , so regardless if i paid my monthly payment I would be charged this interest as long as account was in arrears ,.. I would pay monthly payments as normal and the interest charge gets added to balance ,.. thats why balance is £14k more ,..

so if the first interest charge put account into arrears and that set the tone for other monthly charges to be added then surely thats void contract , as that is surely a mistake to place balance to an high amount before any payments due ,.. as this puts you straight into arrears ,..

planning_ahead_2

looking4justice wrote: »

before first payment was due a interest charge hit the balance

Interest is charged from day 1 that you take out a loan. It doesn't matter when the lender shows it on the statement, it is charged from Day 1. Lender has done nothing wrong by doing this. They do not add interest only after you make 1st payment.

looking4justice wrote: »

so no interest should be added to balance before first payment due

Not correct. See note above about interest charges from day 1 of loan

looking4justice wrote: »

so over the full time period 84 interest charges

your statement SHOULD show 84 interest charges over the 84 months you have had the loan. It doesn't matter if they show before or after your monthly payments - the outcome will be the same.

looking4justice wrote: »

thats why balance is £14k more

Balance is £14k more than the sum you borrowed because borrowing £36k over 25 years means you will repay approx £50k (I make it slightly under that but near enough).

looking4justice

yes i agree interest is from day 1 ,.. and that will be covered from 1st payment made yeah ? along with a small part of the capital ,.. I understand this ,.. my payments were Capital and interest which shows that interest for first month will come from contractual payment ,.. here is the question for you then ,can you interest be taken twice to cover monthly interest owed ? as you are still missing my point of view ,..

looking4justice

just read your post again planning_ahead ,.. you definately do not see my point ,.. I agree with what you are saying ,.. but thats not what i am trying to explain ,.. i know the way agreements run ,.. can interest be charged twice for the monthly interest owed ?