Loan for a new career

BALDYBOUNCER_2

Hi to all can anyone help me with this in 2006 i decided to try to get back to work after a long time with an illness ,i wanted to try something new so i tried to get on plumbing course as i kept seeing adverts so i made a inquiries and found that none where available,then one of my mates said try olci construction training i went from bank to bank to try get loan but because i was still on the sick i was refused ?then olci said they can sort itso as i was wiling to give it go i said fine and they sent the paper work to me and what did it for me was it stated they would even find on site-placement the course was £5000 and pay it 12months later or it would go to 60monthly payments which took it to £11,495 but i thought i would paid it by the 12month as they was getting me on site "job"but on my 3rd time of going to the workshop i asked one of the tutors about getting some work on site he started laughing he said where did i hear that i showed the leaflet what olci had sent me ?thats when the fun began 1st i had clydesdale financial services when told them i was still on sick didnt hear nothing till 2nd barclays wrote to me i told them i was on the sick and olci had conned me as there was no on site placement then a new one wrote to me allied international credit i sent them the same letter that was 2years ago now i have recieved 3 letters from cabot financial threatening me with a warrant of execution ,charging order,attachment of earnings order etc,as the sum they say i owe now is £11,945.04 so if anyone who can advise me what to do next ?

Tixy

Its a bit difficult to make out all the timescales involved from your post.

When did you borrow the money originally? what was the original amount you borrowed?

Are you still on your course? when do you complete it?

Have you paid anything back towards the loan yet?

BALDYBOUNCER_2

Sorry its not clearly stated - i got the loan 2006 and started the course feb 2007 no i didn't finish the course i was trying to explain to olci what they stated in there leaflet on-site placement to me means on a building site not in the workshop AND THE ONLY MONEY I PAID THEM WAS £75 WHAT GETS ME I OFFERED TO PAY THE 3 WORKSHOPS I DID AND THEY REFUSED AS IT WAS ONLY £500

Apples2

On-Site simply means on the premises. It could be anywhere.

Anyhooo, by not finishing the course I can't see there being anything you can do.

Bewilders me why you accepted an agreement of a £5k loan which will lead to you repaying nearly £11.5K though.

There a hundreds of these type of training course offering guaranteed employment on completion. The reality is that the job pays a tiny wage and is located in the Centre of London (ergo... ridiculous and totally not worthwhile)

chalkie99

BALDYBOUNCER wrote: »

Sorry its not clearly stated - i got the loan 2006 and started the course feb 2007 no i didn't finish the course i was trying to explain to olci what they stated in there leaflet on-site placement to me means on a building site not in the workshop

So, to clarify it, I think:

You signed a finance agreement to fund a training course, in the belief that it would guarantee you a job on completion.

The finance agreement was that you would pay £5,000 after 12 months.

If you failed to pay then it altered to a 60 month agreement at a total cost of £11,495.

You need to study the agreement you actually signed. Does it actually state you are guaranteed employment? Or, is this something you just assumed from reading promotional leaflets?

Looks like you are probably liable for the payments to the finance company and you would need to pursue the training company if you can prove they claimed the course guaranteed something it did not actually offer.

The fact you never completed the course is irrelevant to the finance company.

Tixy

Are you working at all now?

Do you have a CCJ for this debt? I would presume you do if they are threatening a warrant of execution rather than a CCJ. Did you reply to the court papers and ask to pay in installments? or did you defend against the CCJ. Have you a copy of the courty court judgement?

I would suggest you next course of action would be to write to cabot with a monthly repayment offer you can afford or to apply to the court to be request to pay in installments (form N245 I think).

If they haven't gone to court yet and you don't have a CCJ then write to cabot with a monthly repayment plan showing how much you can afford to pay each month.

BALDYBOUNCER_2

No i am not in employment ?no they haven't issued a ccj yet its all threats on this letter whats going to happen if i dont get in touch with them ?but i got told off a friend of friend that after 6 years they cant take me to court is this true also if i request for it to go to county judgement with a full explaintion of what happened the judge will squash it or is that crap

Tixy

If you don't get in touch then I would imagine they will take you to court and obtain a CCJ against you. After that if you still ignore them they will likely appoint bailiffs.

If they didn't obtain a CCJ and a period of 6years elapsed from when you took out the loan - and assuming you didn't pay anything towards the loan or and that you haven't ever acknowledged in writing that you owe the money for those 6years (you'd need to look back carefully over all the letters you sent to see if there was anything that could be classed as acknowledgement) then the debt would be statute barred - that would mean if the susequently tried to take you to court you could defend against it and legally would not be required to repay the debt.

But for a debt of this size I think it is very very unlikely they will let it get to that stage, they will almost certainly take you to court before the 6year period is up.

If cabot (or whoever) take you to court then the situation with what you were told by the training company would not affect the case at all as these are two different companies and the finance company have done nothing incorrect - you have taken out a loan with them and not repaid it, so you do owe the money.

Ideally I would suggest starting to offer cabot token payments and try to prevent a CCJ. If you do get court papers make sure you complete them and ask to pay in installments - a judge should not order you to pay more than you can afford.

BALDYBOUNCER_2

So there,s no way out of this then only to pay ?the only time i've been in touch with them is to explain i still on benefit as i suffered 2 heart attacks in the past?

Tixy

It depends what your letters say - if you said something like 'i am not in a position to repay my loan currently as I am claiming benefits' then that would count as acknowledgement.

From what you have posted I would think you would need to repay yes - if you have no assets and realistically are not likely to be fit to work any time soon then you could possible consider getting advice as to whether bankruptcy or a DRO would be a sensible option for you. I'm not saying it is but it might be something to consider - if you are doing then these are the people to contact for advice- IMPORTANT - Where to seek professional impartial advice about your debts.

geoffky

pay a couple of quid a month...unless you can afford more.