How the?

chillisteak

Hey guys and girls,

I just recently called a company I have a loan with, to ask when my last payment was due this year?
they stated october but by my calculations 36 months from when I took it out would be june this year.

Since I've had this loan I haven't missed one payment, so i'm kinda confused on how it can go on longer than my Credit Agreement I sign states.
The person I spoke to wouldn't give me a reason on how it can go on longer than the 36 months I signed for and had no intention of helping me find out why.
I can't see anything in the Agreement that states it will continue past my 36 months.
only thing I can see that might relate to that is this little section....

"Interest will be calculated at the rate of interest on the daily balance oustanding of the total amount of credit and the acceptance fee. It will be paid as part of your monthly payments.

Any payment which is less than the monthly payment then due will be applied towards payment of what is due in respect of the credit advance and the credit for insurances in the same proportions as the amount of credit for each bears to the total amount of credit. in calculating the APR no account has been taken of any variation which mar occur in the rate of interest."

is that quote enough to state the loan is going to go over 36 months?
Because right now I feel like I've been miss sold this loan and getting robbed of money they have no right to.

any advice would be great on this matter because, this just seems wrong to me.

Thanks
Gav

ryanm198

Did they give you any payment breaks at the beginning or mid way through the 36 months? I know some do a 'nothing to pay for the first 3 months' kind of deal?

Consumerist

Do you receive periodic statements of account? Are there any unexplained entries?

It's helpful that you have a copy of your agreement but in order to understand your current situation, you need to see an up-to-date statement for the account. Once you have that statement and there is anything you don't understand then you should challenge it.

I would suggest you firstly phone the company asking for an up-to-date statement, if you don't have one, and confirm your request in writing. If there is anything on the statement you don't understand then post here again for further help.

chillisteak

Na no payment breaks taken literally started paying the following month after receiving the loan.
As for statements Last one they sent me is a few months old now, I asked them to provide me with another statement on the phone and they said it would cost £10 to see a statement if it's not sent out the normal times.
Which I thought was crazy seeing as I have a problem they won't help me, solve why I have this problem.

Looking at the statement, I do have Default Sum Fee interest being applied every month of £0.75 which to be honest I shouldn't because I've never missed a payment, it's all done by direct debit no way I can miss one.
but other than that everything by my math on the statement looks spot on and even with that problem my I still work it out at ending around June.

zppp

I suggest you send a Subject Access Request to the lender, with a cheque or postal order for £10, and request all of your personal information. You should then get full statements and information may come about about any missed payment(s).

Consumerist

OK. You need to get to the bottom of the "Default Fee". When did they start charging this fee and what is shown on the statement just before then. If a payment was not missed then it may have been late - if that's the case then why?

Your statements should show how much interest you have been charged each month. If not then it should be clear from your agreement e.g. was all interest for the loan added to the original amount borrowed? (a practice now prohibited) Or does the interest charge decrease each month as the balance decreases?