Advice needed on added inerest to old debt

NO-BRAIN

Hi,

In 2001 I wanted to buy a new kitchen so took out a loan to pay for it. then I sold my house and knew that rough times were ahead tried to be sensible and clear large debts. I requested a settlement figure from my loan company-they wanted it in writing so I did that but never got a response. Although I chased I never got any info and the money was burning a hole in my pocket. I made a payment (2002)which I estimated would cover the cost. I never heard anything more. 2 years on (2004) I was contacted by a debt collector-Link financial who advised I now owed over a a grand as my payment was 700 quid short and over the years they'd added interest and charges. My circumstances were bad so a repayment plan of £5 per month was agreed and I requested they freeze the interest-which they did. Then at end of 2010 I received a yearly statement and the balance had gone back up another £100 quid as they'd added interest for the year 09-10. I have rang and asked them to remove this and continue with previous arrangement and they have stated that they are entitled to the interest I have not paid over the past 6 years and now want nearly £7K from me????
All this bearing in mind the original loan was only ever for £5k but when I was discussing on the phone I said to the lady my balance should be £670 and no more-she could continue to stick to the pp agreed or I would stop paying as it has gone from my credit record already and if they were to take me to court I'm sure a judge would agree that they were fleecing me. She then said if I paid this amt in a lump sum they could clear the acct.....so the £7k just disappears??? I'm all for paying my debts and not hiding from them but this seems to be blatant daylight robbery.
Please can someone advise of my rights?
1-Can they suddenly add this interest on?
2-If I stop paying what action could they take?

Many thanks in advance

NO-BRAIN

I've had no repsonses yet-does no-one have any advice for me?? please help xxx

McKneff

Your post is a bit mixed up.

When did you last pay them any money or acknowledge that you owed this debt.

If it is more than 6 years, send them a statute barred letter.

If it is more than 6 years it should have dropped off your credit file.

thechippy

Ok,

From reading the above it's not statute barred.
Send them a CCA request straight away. A DCA CANNOT add interest unless the original credit agreement had the provision to do so, once sold on. This is rare.

They have 12+2 days to respond.

In light of what I've read, I don't think they have a leg to stand on.

Do the above and get back to us.....;)

Edit.

NEVER speak to these morons on the phone. Writing only - this is of paramount importance!

NO-BRAIN

Thanks Chippy, you're right it's not a statute barred thingy as I've been making my payments religously for years.

What is a CCA? Years ago they sent me a copy of the original agreement so I do have it and, of course, there was interest added to the original loan but I'm not sure if there was any mention to a debt collection agent having the right to add it's own interest or claiming the interest which was on the original agreement. They chased me for £1,300 and have never mentioned anything about interest until now. It has been more than 6 years so it does not show up on my credit reference anymore but I'm not sure what power they now have to enforce the debt??

Thanks for answering-I really do appreciate it it's so lovely to know there's people on here who have the knowledge to share This website has been a goldmine over the years-big pat on the back for martin:money:

thechippy

No problemo.....:D

Send them this.

Dear Sir/Madam

Re:- Account/Reference Number ……..

This letter is a formal request pursuant to s.77/78 of the Consumer Credit Act 1974. I require you to provide me with a true copy of the credit agreement relating to the above account, together with any other documentation the Act requires you to provide.

I expect you to comply fully and properly with this request, within the statutory time limit. You are reminded that should you fail to comply with my request, the provisions of s.77 will apply.

If it is your view that you are not the creditor, s.175 of the CCA 1974 applies in the case of a simple assignment, and places a duty upon you to pass this request to the creditor. In the case of an absolute assignment, you are a creditor as defined by s.189. If you contend that you purchased the rights but not the duties of any agreement, you are reminded that s.189 of the Act is clear that an assignment is of both rights and duties.

Your attention is drawn to ss.5(2), 3(b),6 and 7 of the Consumer Protection from Unfair Trading Regulations 2008 (CPUTR).

I enclose a postal order in the sum of £1.00, which is the statutory fee. Note that these funds are not to be used for any other purpose.

If you are unable to comply fully and properly with this request, you should confirm this in writing at the earliest opportunity, and certainly within the statutory time limit for compliance, and return the fee.

We look forward to hearing from you.

Yours faithfully

Once they go over the allowed time, cease payments. They are trying to fleece you.

IF they send something, try to scan it, remove any personal info / account numbers etc and post it so we can see the agreement and advise.

These morons need stopping asap....;)

NO-BRAIN

Hi,

I spent ages trying to sort this as have very little IT skills lol, thankfully someone on here came to my rescue and told me where to put my documents. Please see the following link to see the documents you requested. Sincerely big thanks for your time in this Chippy:

http://www.!!!!!!/shared/z3d9lqq2zv

Thanks,