Help With Loan Company

RebeccaB80

We took out a loan last year but due to financial difficulties had to seek advice from the citizens advice as were struggling to make the payments. They proposed a pro rata payment plan to which we have now been paying the agreed repayment amount for 6 months. We have been requesting new payment terms to show this and how much we owe, the new interest charges and also when we would finish paying this off. We were told this would be sent to us in Jan however after many phone calls we still have not received this. We have now received a letter advising the agreement would be reviewed in 6 months but have not received a statement. we have no ides what interest they have charged or how much we owe. The company seem very reluctant to tell us this which is worrying us immensely. We are not trying to avoid paying the loan and have done everything the correct way however we now have no idea what we owe or what we are being charged? We are not sure where to go from here?

Tixy

Hi Rebecca,

Once you are on a DMP and paying reduced pro-rata payments this is always an informal arrangement with the creditors therefore I would not expect them to send you new payment terms at all or anything that confirms when the debt would be paid off. That is because even if they agreed to freeze interest creditors always reserve the right to start charging it again or the right to decide to take court action against you.

What they should be sending is a statement of account to show what you owe now and whether they are still charging interest & charges etc. Legally this only has to be sent annually but if you specifically request it they should send it to you sooner than that. You say you have been requesting this, is this by phone or in writing?

If you have so far only done this by phone then I would suggest you write to them requesting a statement of account and a breakdown of all transactions.