Is my Loan unenforceable? Is the charge for credit and interest rate fair?

markyboihull

HELP, I was made aware for first time about unenforceable LOANS this week. i dug out my policy and according to some advice sites it looks like my policy is all above board. However.
The only thing I can pick fault with is whether the Credit Charge is fair. Everything else is on agreement - signature, cred limit, fact that its secured oh no mention of cooling off period btw.
Here are my details : amount of cred £10500, 120months, apr variable 10.9% Taken out 1st dec 2005
TOTAL CHARGE OF CREDIT £6451.20
Does that seem fair?

The payment protection was stated as IN FULL FORCE though cant find anything agreeing to this, and recent statements show I am not paying any but first few years of repayment it shows up on statement. Have I cancelled it I do not know though should have I been paying it in first place

IS THIS LOAN LEGAL OR CAN I CHALLENGE IT , CLAIM SOMETHING or is it too much hassle for nothing?

[Deleted User]

As you agreed to it, I'd say yes, it seems fair. You would know better than anyone else whether that was a fair rate based on what others offered you.

Apples2

I don't see how you have a total charge for credit on a variable rate loan but besides that, how come you thought it was such a great deal at the time but now think it illegal?

Why did you sign the line for something you thought was illegal?

How do you define FAIR?
People get offered a product based on the lenders perceived risk you carry, you seem agrieved that other people have borrowed money for less than you...Why?

Tixy

The credit charge is fair, its what you agreed to by signing up for a loan of that amount, with that APR and over that term.

skintandscared_2

Did it seem fair when you signed the agreement and when you were spending the money?

paddyrg

Just to tackle this from another angle - unenforceable doesn't mean the money is no longer owed, just that they can't enforce collection. But those numbers look "about right" withut seeing the whole agreement document.

opinions4u

Sounds like the PPI doesn't cover the term of the loan.

That could be grounds for mis-sale.

The rest of it? Dream on.

Malky

£10K over 10 years is never going to be cheap anyway. I can't see a problem here but guessing you're like many others and want to avoid paying the remaining balance.

markyboihull

I was quite happy paying for this loan, as I had terrible credit it seems they can charge a high credit charge. Where as if my credit rating was much better at time then it could be deemed as un fair. Only reason I questioned it is because issue was mentioned by someone else.

Unfortunately, 6yrs ago I was pretty rubbish with finances but I have learned the lOng, hard expensive way. I stay clear from borrowing now and will have this loan paid off in near future. My PPI is something I'll look in to further but was under no illusion of managing to dodge paying loan off. More chance of winning lotto!

Thanks your your feedback guys, found these Forums a real help on a host of subjects.

chanz4

it can be lent at any rate, you dont have to take it

paddyrg

On the plus side, just 4 years to go, and if you look into the PPI (there's a dedicated forum here) it may be that that can be reduced further. If you can find the cash, overpayments are the easiest way to reduce the overall cost of borrowing too, although check your paperwork/with the lender as I think it was around 2005 there was a change in the way interest cohld be applied, so overpayments may not be an option.

But whilst £6k is a lot of money, on £10k over 10yrs, it doesn't sound that bad compared with some people's stories here. In fact, 10.9% would be considered a good rate by many borrowers at the moment, certainly ones without spotless histories!