Dodgy Lender

marky10

Hi ,

I wonder if anyone can help me, I took a loan out with Northern Rock
in 2004 for £8000.
I was comfortably paying this for 2 years until i hit hard times with work.
I contacted Northern Rock and told them of my financial difficulty but
unfortunately they were not very understanding.
I did make payments of around £50 a month instead of the £150 they wanted.
After 4 months NR decided to take me to court and secure the remaining
sum to my property. The court actioned this , I did write a letter in my defence! No joy. Not only did they secure the original £8000 but they added the interest which took the loan up to £16000.
NR then sold the debt to a company called Link Financial, I have been paying Link £50 a month ever since.
I have my protection insurance returned so that has knocked about £1200 off the bill.
Can these companys really do this ??
Any advice would be appreciated, a recent statement from Link states
I still owe £9000!!!

Apples2

Sounds awful but as soon as you dropped the repayments to £50, you would not have even been paying the interest off so your loan would be INCREASING each and every Month.

Add to that you are falling into default, trashing your credit rating and incurring fees, it all mounts up.

Do you have a statement showing a full breakdown of charges??

marky10

Hi ,

No I have never seen a break down of the charges.
Someone told me to look into this because it doesnt look justified.
Though once they attach to the property there isnt much i can
do Im guessing.

Jeff_Bridges_hair

marky10 wrote: »

Hi ,

No I have never seen a break down of the charges.
Someone told me to look into this because it doesnt look justified.
Though once they attach to the property there isnt much i can
do Im guessing.

Well as Apples says your not even paying off the interest each month which is where the problem is. Im suprised NR sold it so quickly though after getting it secured to your home..

Are you still unemployed now or are you back in work?

Apples2

marky10 wrote: »

Hi ,
No I have never seen a break down of the charges.

I think you are against a sticky wicket, even so, you should write to them requesting a full breakdown of costs.

At least it would give you an understanding of where the increase has appeared, there may be an avenue to pursue if you have all the details.

http://www.linkfinancial.co.uk/contact.html

I really wouldn't bother with phone calls, too much stress and you can't use the information as evidence in any case. Keep it all in writing so you have a trail (and something to read again when you calm down).

Be clear in what you are asking for, request a full breakdown of monies owed. You may end up sending a pound for the info but it will be worth it to find out the true position.

marky10

ok, thankyou very much, I will use the Link you have sent.
I am not sure if LF will have a breakdown as they bought the £16000 debt from NR,
I may have to ask NR for the break down of charges but I will try LF first.
Thanks again much appreciated, I will post when I get a response

greatpromos

hey marky10,

As stated within law finaceual instations do have the right to recover a total outstanding balance, however this most be within reason.

However, if you had made an arrangement with the northern rock to repay the balance at the rate of £50.00 per month then in arrandance with the insolvency act the should not have been able to take you to court. Unless you had defalted on a payment.

although dont quote me on this info.

marky10

I have asked LF for the breakdown of charges, they have told to send five pounds and they send the info when they get it from northern rock .