please help....paragon finance loan

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stu0906
stu0906 Posts: 4 Newbie
in Loans
i need some advise please... i took a loan out with paragon finance in 1996 for £10.000 over 5 years, now iwas paying the full monthly payment of around £360 a month for about the first 12 months or so then i was made redundant and so arranged with them to pay redused payments of about £130 pm. ihave been paying this amount now EVERY month for the past 10 years and have today been sent a statement through the post which states i still owe over £25000!!! im now in a position as to what to do because if i carry on payin the total is just going to get higher and higher. can any one offer any advise???
thanks folks.

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  • beanielou
    beanielou Posts: 90,397 Ambassador
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    Welcome to MSE!
    Sorry cant help you with your difficulty.
    Get in touch with CAB or Trading standards for help.
    I am a Forum Ambassador and I support the Forum Team on Mortgage Free Wannabe & Local Money Saving Scotland & Disability Money Matters. If you need any help on those boards, do let me know.Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button , or by emailing forumteam@moneysavingexpert.com. All views are my own & not the official line of Money Saving Expert.

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  • fatbelly
    fatbelly Posts: 20,557 Forumite
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    Good advice. Maybe also worth seeing a solicitor for a free half hour consultation. Needs to be one who understands the Consumer Credit Act, as I think some Paragon loan agreements have been found to be defective and unenforceable under that act!
  • Xbigman
    Xbigman Posts: 3,884 Forumite
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    The problem is that £130 per month did not cover the interest on the loan, so the loan has been increasing all the time. You should see CAB because they should have sent a statement of some kind to let you know. Whether or not that is enough to force them to do anything is very debatable, but its worth a try.
    Regards



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  • stu0906
    stu0906 Posts: 4 Newbie
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    thanks guy's just another note they did stop the interest then at one point as shown on the statement,then they added on over £11,000 interest in one day alone.......
  • Xbigman
    Xbigman Posts: 3,884 Forumite
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    Do you have anything in writing about them stopping the interest? That would be pretty valuable.

    And £11000 in one day. That sounds like a mistake to me. You should pursue this through their complaints procedure and then to the financial ombudman.

    Make a written (recorded delivery) complaint in writing that you believe they have overcharged you interest, especially as they agreed to stop interest because you were in financial difficulties.
    Also demand a written explanation of how £11,000 was added in one day.

    Then see what they come back with.
    Regards


    X
    Xbigman's guide to a happy life.

    Eat properly
    Sleep properly
    Save some money
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