Santander claim I owe more than I actually do.

BoilingPoint_2

Back in 2008 we bought our car from The Car Shop, the finance was handled internally, by GE Capitol... all was well for about a year then Santander took over, since then things have gone from bad to worse.

At the moment we are in default and are dealing with a company called Anglia they tell us that Santander claim we owe almost 6K on our loan, well we knew something was odd but this was ridiculous ... so we checked our original paperwork and it turns out the start figure was only £6,200 so how can we still owe almost 6k?

What's the best approach to take? should we contact Anglia, our bank, citizens advice or all the above and more..

Any help would be appreciated....

JuicyJesus

BoilingPoint wrote: »

Back in 2008 we bought our car from The Car Shop, the finance was handled internally, by GE Capitol... all was well for about a year then Santander took over, since then things have gone from bad to worse.

At the moment we are in default and are dealing with a company called Anglia they tell us that Santander claim we owe almost 6K on our loan, well we knew something was odd but this was ridiculous ... so we checked our original paperwork and it turns out the start figure was only £6,200 so how can we still owe almost 6k?

Which came first, the default or the issues with Santander? What issues were these (before this)?

I ask because if you miss payments or they have to undertake debt collection activity they are allowed to charge fees for this, as well as interest, details of which will be included in your loan agreement. Defaults are quite hard to get to as well, you have to miss payments for a considerable length of time.

The debt collection agency can and will apply their own fees also.

zppp

BoilingPoint wrote: »

Back in 2008 we bought our car from The Car Shop, the finance was handled internally, by GE Capitol... all was well for about a year then Santander took over, since then things have gone from bad to worse.

At the moment we are in default and are dealing with a company called Anglia they tell us that Santander claim we owe almost 6K on our loan, well we knew something was odd but this was ridiculous ... so we checked our original paperwork and it turns out the start figure was only £6,200 so how can we still owe almost 6k?

What's the best approach to take? should we contact Anglia, our bank, citizens advice or all the above and more..

Any help would be appreciated....

Preumably it was not interest free and therefore, you may have borrowed £6200, but you have not calculated the interest over the three year period. Therefore, what is the interest rate on the agreement?

caledonian_princess

Also, was the interest front loaded? I had a loan which had all the interest for the term of the loan added right at the start of it. I eventually paid it off with a lump sum about 2 years early and the settlement amount they wanted from me was quite a lot less than the balance outstanding because of the reduction in interest charged.

CHR15

Not to mention you are in default so are incurring all sorts of late fees and charges.

Did you really think you had a 0% interest loan so you were only going to repay the amount you borrowed, and then thought you could miss payments but incur no additional fees?

opinions4u

Every time you miss a payment, your debt rises as the interest is added.

How much have you actually paid?

What's the interest rate?

What term have you borrowed over?

themull1

As above, if you're in default, the charges they will add on will soon mount up. You will have to ask them for a detailed breakdown.