Misold Secured Loan

kamijohn

Hi
I took out a secured loan in 2005 for 15 years £ 27000(180 monthly installments) .PPI of £4000 was added to laon total value of laon became £31000.However on my complaint, PPI was refunded to lender by insurance Co therefore my outstanding loan amount went down.however my monthly payment of £326 still remianed same and number of monthly payments also unchanged i.e;180. I contacted my lender and ask for explanation as after the refund of £4000 why I am expected to pay same monthly payment for same period of time ? Either payment should go down or no of monthly payment cut down.However they only told me I will not be paying my repyament for 180 months but less then that. However they could never be able to tell me how many months less I will be keep on paying my monthly repyament. Also on original agreement it says 180 monthly installment while on my annualy statement it says 182. Morover they keep on changing interest rate which always go up without informing me. This makes most of my repayment going toward interst rather than clearing capital amount.This has been driving me mad and worried as I also got told that if capital payment not going down much will leave me with money owing to lender despite after paying them 180 installment. Is there any one who can help me out or guide me . Because I believe it might come under misold product as 1) I was never told about changing interest Rate 2) not told about owing money even after paying 180 monthly installment 3) not been given any explanation what would happened if PPI being refunded.4)not being informed why it says 182 monthly installment while I sighned for 180 installment agreement.

redpete

Have you checked the Ts&Cs that they would have supplied you do not cover the variation in interest rate and potential of not paying it off over 180 payments?

Have you asked them why the statement says 182?

How the refund of PPI affects the payments would be unlikely to be considered 'mis-selling'.

amersall

kamijohn wrote: »

Hi
I took out a secured loan in 2005 for 15 years £ 27000(180 monthly installments) .PPI of £4000 was added to laon total value of laon became £31000.However on my complaint, PPI was refunded to lender by insurance Co therefore my outstanding loan amount went down.however my monthly payment of £326 still remianed same and number of monthly payments also unchanged i.e;180. I contacted my lender and ask for explanation as after the refund of £4000 why I am expected to pay same monthly payment for same period of time ? Either payment should go down or no of monthly payment cut down.However they only told me I will not be paying my repyament for 180 months but less then that. However they could never be able to tell me how many months less I will be keep on paying my monthly repyament. Also on original agreement it says 180 monthly installment while on my annualy statement it says 182. Morover they keep on changing interest rate which always go up without informing me. This makes most of my repayment going toward interst rather than clearing capital amount.This has been driving me mad and worried as I also got told that if capital payment not going down much will leave me with money owing to lender despite after paying them 180 installment. Is there any one who can help me out or guide me . Because I believe it might come under misold product as 1) I was never told about changing interest Rate 2) not told about owing money even after paying 180 monthly installment 3) not been given any explanation what would happened if PPI being refunded.4)not being informed why it says 182 monthly installment while I sighned for 180 installment agreement.

Hi there, does your monthly payment increase when they dont inform you that there is a rate rise? as they should inform you when your rate is going up. As regards the ppi, this ppi monthly amount should come off your loan monthly amount, you could ring and request this. As to the term of the loan, (with it being secured) your rate goes up when there is a rate rise,and this extra payment is so that the loan is repaid at the term end. More comes off the loan in the later years as in the earlier years you pay more interest back, this is how secured loans work.Who is the loan with?. Your next step would be to put a complaint in to fos, just explain about the ppi, as your loan should be reset without ppi (so you get the ppi monthly payment back.) and also about the loan term and how this is being extended, and hopefully they will help you with this.Also, you should have had the ppi monthly payments that you made to date returned to you! did this happen?.

kamijohn

Hi guys thanks for your attention. Yes I was refunded the PPI I already paid to lender. well my monthly installment doesnot go up or down with rate fluctuation. however on my statment it shows that i have been charged different rates during the year .(this is only time when i come to know that I am being charged different rates) I undertsand if my product is linked as a tracker to BOE rate then it should change , but I signed the agreement as a fixed monrthly payment for over 180 months. I also understand the way secured loan works normally ( in initail years you pay more interst and less toward capital) but I am worried about owing money despite pay 180 monthly installment. the reason being I am reffering it as mislod because
1) PPI was added despite my reluctance, (it means all other important T&Cs regarding interest rate, owing money even paying it off, extra 2 monthly installmentcould have been kept in dark).
2) , I never wanted to owing money to lender even after paying my committed 180 intallment( not 182 as shown on statement).This situation only occurs where you pay interest only. but I am paying my full repayment including capital.
3)despite my demand, they never tell me why I should be paying same monthly payment of £326 over same period of time even after refund of PPI worth £4000.
4)Why I am kept dark about change in interest rate?

Reason of putting it here is that may be this sounds strange to me but it may be normal course of secured laons. and if its not normal then how I can get the things right or sorted.I am not trying to get my loan written off or reduced all I am trying to make sure I am not being ripped off by Greedy Banks.

Thrugelmir

kamijohn wrote: »

. however on my statment it shows that i have been charged different rates during the year

Interest is charged on a daily basis and compounded monthly. So month to month you will incur different interest charges.

Your monthly repayments were calculated to repay the balance over the entire term of the loan.

So nothing amiss with this.

amersall

kamijohn wrote: »

Hi guys thanks for your attention. Yes I was refunded the PPI I already paid to lender. well my monthly installment doesnot go up or down with rate fluctuation. however on my statment it shows that i have been charged different rates during the year .(this is only time when i come to know that I am being charged different rates) I undertsand if my product is linked as a tracker to BOE rate then it should change , but I signed the agreement as a fixed monrthly payment for over 180 months. I also understand the way secured loan works normally ( in initail years you pay more interst and less toward capital) but I am worried about owing money despite pay 180 monthly installment. the reason being I am reffering it as mislod because
1) PPI was added despite my reluctance, (it means all other important T&Cs regarding interest rate, owing money even paying it off, extra 2 monthly installmentcould have been kept in dark).
2) , I never wanted to owing money to lender even after paying my committed 180 intallment( not 182 as shown on statement).This situation only occurs where you pay interest only. but I am paying my full repayment including capital.
3)despite my demand, they never tell me why I should be paying same monthly payment of £326 over same period of time even after refund of PPI worth £4000.
4)Why I am kept dark about change in interest rate?

Reason of putting it here is that may be this sounds strange to me but it may be normal course of secured laons. and if its not normal then how I can get the things right or sorted.I am not trying to get my loan written off or reduced all I am trying to make sure I am not being ripped off by Greedy Banks.

As i stated previous, take this to fos, they have to let you know when there is a rate rise or decrease and your monthly payment should come down by the ppi monthly amount due to the mis sell. You will pay this loan off over the original term and i am afraid to say you have to accept the rate rises, but you should have had written notice of these and why they have increased this. First plus give customers a loan agreement that was linked to boe and libor rates, we have had in the past year, 2 increases that the company say is "prudent to their business" so i doubt your loan company will give you any of the decreases "due to the bank of england dropping rates to 0.55%".as your month;y payment would be really low by now. Please take this to fos, you want your monthly payment reducing and you have had rate rises without being told they were doing it.

kamijohn

Hi
Thanks all for your help. I did complain to Ge money about all this above mentioned issues. They replied me offering £2500 to reduce the balance of my loan. but I am not happy as this willnot compensate or benefit me. Previously PPI of £4125 was refunded but it didnot make any difference to my monthly repayment or term of loan, I still liabale to make payment of £326 over 15 years.therefore I believ crediting my loan a/c with £2500 will not make any difference at all. They claimed that this agreement is not regulated under ConsumerCredit Act, therefore they are not obliged to inform me about change in interest.Whihc means I can still be owing them money at the end of loan term despite paying all my 180 monthly repayments on time. According to their reply to my complaint, it is always be my responsibiltiy to monitor the interst rate on my account and all future payments are changed each time there is a future increse in the rate.
Another important aspect of my loan application is that when I was sent the agreement to sign , I was advised to sign it straigh away. I was not given any time to look at the details. (when I asked for more time, I was told that this is best rate which will go away if signed agreement doesnot reach back by end of day)there was a requirment to get some one to act as a witness.when I said I got no one around that time who knew me and can act as a witness. I was told not to worry about that as courier could do dat for me. therefore Courier who never knew me signed the decalration as a witness.
I am definitly taking all this matter further. Any Advice or suggestions, help and support are welcome,
thanks

Thrugelmir

kamijohn wrote: »

They claimed that this agreement is not regulated under ConsumerCredit Act,

Correct. The original loan advance was above £25k. So is not regulated.

When borrowing at this level. It is assumed that the individual concerned is either competent in financial matters or would seek professional guidance. Certainly before signing.

Although advised to sign it straight away. You could have taken a couple of hours to read it throughly. On this count you have to accept responsibility.

amersall

kamijohn wrote: »

Hi
Thanks all for your help. I did complain to Ge money about all this above mentioned issues. They replied me offering £2500 to reduce the balance of my loan. but I am not happy as this willnot compensate or benefit me. Previously PPI of £4125 was refunded but it didnot make any difference to my monthly repayment or term of loan, You need to question why your loan was not reduced by the ppi, was this a refund for mis sell?I still liabale to make payment of £326 over 15 years.therefore I believ crediting my loan a/c with £2500 will not make any difference at all. They claimed that this agreement is not regulated under ConsumerCredit Act, therefore they are not obliged to inform me about change in interest.Whihc means I can still be owing them money at the end of loan term despite paying all my 180 monthly repayments on time.Take this to fos NOW, i have a debt with fp that is not regulated, but i still am informed when there is a rate rise. If you have the agreement that says x pounds a month over x years , then your loan will finish then, with rate rises etc over the term. Does it say on your loan document that your loan term may increase and it will take you longer to repay this loan?.According to their reply to my complaint, it is always be my responsibiltiy to monitor the interst rate on my account and all future payments are changed each time there is a future increse in the rate.
Another important aspect of my loan application is that when I was sent the agreement to sign , I was advised to sign it straigh away. I was not given any time to look at the details. This is the problem with couriers, you do not have chance to look through the documents in your own time , unlike a postal one where you can. Take this to fos, this company are trying it on in my book, raise the points i have mentioned on here and let fos deal with them.(when I asked for more time, I was told that this is best rate which will go away if signed agreement doesnot reach back by end of day)Put this in your letter to fos as well.there was a requirment to get some one to act as a witness.when I said I got no one around that time who knew me and can act as a witness. I was told not to worry about that as courier could do dat for me. therefore Courier who never knew me signed the decalration as a witness.Dont think it matters that the courier signed as a witness, it was just to witness that you were the name on the agreement and he saw you sign this.
I am definitly taking all this matter further. Any Advice or suggestions, help and support are welcome,
thanks
There would be a lot of very angry customers if they sign a agreement for a loan,and excpect to repay it in a certain time frame, but could end up paying it back for many more years to come. This is hogwash from this company.Please fill the fos form in now,you will find it here.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#reclaim

amersall

Thrugelmir wrote: »

Correct. The original loan advance was above £25k. So is not regulated.

When borrowing at this level. It is assumed that the individual concerned is either competent in financial matters or would seek professional guidance. Certainly before signing.

Although advised to sign it straight away. You could have taken a couple of hours to read it throughly. On this count you have to accept responsibility.

A courier does not wait for a couple of hours for you to sign the agreement, they have to come in, check you are the one named on the agreement, you sign and off they go.