paying off a loan

TWINNIE

Hi Martin

In 2007, I wrote to GE Money and explained that my financial circumstances had changed and that I would be unable to continue paying off the loan taken out in 2003, I paid them what was outstanding in the price of a fitted kitchen minus the interest. I heard nothing from them and thought that this was ok. Now 3 years letter they have contacted me informing me that I still owe them money, with no mention of the correspondance and payment I sent to them in 2007.

Can they demand this money even though my circumstances are that I am unemployed and living furnished rental accommodation.

Twinnie

RobertoMoir

TWINNIE wrote: »

Hi Martin

In 2007, I wrote to GE Money and explained that my financial circumstances had changed and that I would be unable to continue paying off the loan taken out in 2003, I paid them what was outstanding in the price of a fitted kitchen minus the interest. I heard nothing from them and thought that this was ok. Now 3 years letter they have contacted me informing me that I still owe them money, with no mention of the correspondance and payment I sent to them in 2007.

Can they demand this money even though my circumstances are that I am unemployed and living furnished rental accommodation.

Twinnie

I wouldn't count on a reply from Martin - these boards are for fans of the site to help one another.

OK. Taking things in reverse order:

What you do for a living now and where you live has no bearing on whether or not you owe them money. And if you owe it they can certainly ask for it.

If your last payment was in 2007 then you haven't entered the "statute barred" stage yet with this loan, so they can still chase it from that point of view, I'm afraid.

So this brings us on to your payment:
What exactly did you say to them when you offered this payment?
What did they say in reply?

In other words: Did you write to them offering a "full and final settlement" and did they reply acknowledging that this is what the payment was? Or did you just send them some money?

TWINNIE

I sent them payment and a letter explaining that this was a final payment due to my financial circumstances, but they never acknowledged this and there was no mention of this in the correspondance I am rceiving from them now.

TWINNIE

CHR15

Bizarre!!

You thought you could simply pay them the capital and simply disregard all the interest and it would all be okay (tell us you didn't really think that was okay!!)

You also think the whole lot should be disregarded as you are unemployed and living in rented accommodation.

I think you have an AWFUL lot to learn about making financial commitments.

RobertoMoir

Then I think they can still ask you for the money you owe them. Sorry, I know that's not what you wanted to hear.

Of course you can't pay what you can't afford. But nor can you simply decide not to pay and expect to hear nothing.

There are template letters for dealing with debt collection around here, you may find those useful for the sort of letters you are going to need to write.

theoretica

Are they chasing you for the complete sum or just the interest? If they banked the money you sent them and are now claiming it again in full then you are right, they can't do that. If on the other hand they are chasing you for the difference between what you paid them and what you owed, they can.