hitachi loan

jayson3

I am currently on a debt management plan where all my creditors have excepted about from Hitachi!!

Hitachi are being very awkward sending me many letters demanding payment and charging me for sending letters, even if they call me.
I took the loan out last May for 9,200 at an apr of 16.9%. As have defaulted and they have rejected my payment offer of £78 per month they have since informed me that i now owe 15,188. They have said the extra amount is interest that would have been charged for the term of the loan which has been added as i have defaulted. Even if i pay the contractual payments again which are £171 per month they will still not reduce the balance. They are also charging interest on top of this balance which means i will be paying double interest.
I understand i owe the money but in my current circumstances i thought they would have been a little understanding. I feel it is unfair to charge this amount of interest which i was told accounts for interest between now and 2018.

Can they do this by suddenly front load interest after defaulting

What do you think i should do have i got any grounds to complain

MonkeyMad

Are you sure that they have increased the BALANCE to £15K or are they reminding you that this is the total amount repayable if the loan were to run its course -£171 per month for 8 years is tgoing to be in the region of £15K total so this figure should not be a surprise.

Is the additional interest you mention accounting for the difference beteen what you ought to be paying them and what you are actually paying (which effectively means you are borrowing more money off them)?

jayson3

they are demanding upfront the interest we would have paid over the next few years of the loan, as far as I am aware, interest acrues over a period of time so that money cannot be demanded as it technicaly doesnt exist yet, is this correct

jayson3

the £8,000 borrowed does come to around £15,000 over the period yes but they are charging us interest on the whole amount, that is the amount borrowed plus the interest and slapping interest on the two amounts combined, this seems wrong. they say they are doing this as we missed a payment to them but this is technicaly untrue because they were offered payment at a reduced amount through the debt managment plan but they but refused it as not being enough, they wanted £20 more to bring the amount to over half the set monthly payment

LovelyLeeds

jayson3 wrote: »

they say they are doing this as we missed a payment to them but this is technicaly untrue because they were offered payment at a reduced amount through the debt managment plan but they but refused

Well the thing is, you aren't legally entitled to change the terms and conditions of the loan which is what you were attempting with the reduced amount. Sadly, once you start defaulting, loan companies go into overdrive with charges and interest etc., that's the 'risk' you take when you take on a loan. Hope you can get it frozen or reduced, but it's not looking good.

Apples2

jayson3 wrote: »

they say they are doing this as we missed a payment to them but this is technicaly untrue because they were offered payment at a reduced amount

How can it be untrue?
You refused to pay them the amount you agreed to in your contract with them.

Are you REALLY expecting to drip feed them a little money at your own convenience over how ever long you decide to continue but suffer no consequence?

Do you seriously think you can reduce your payments but still only repay the same amount you had agreed to when they gave you £9,200 of their money?

Of course you are going to end up repaying MUCH more than you would have done had you stuck to your side of the agreement. If this didn't happen we would all take out £9,200 loans and just throw a few quid back at them from time to time.

I don't think you understood the seriousness of borrowing money under a contracted term.

The very best that you can hope for is that they freeze interest on your debt and don't drag your credit file to court for a nice fat CCJ (or worse).

jayson3

It's not a case of us feeding them money at our convenience, our finances have been scrutinised by the debt managment company we are with and the offer to them was in line with what we could afford, you make it sound like we are trying to get out of paying what we owe which is far from the truth, dont you think we would settle in full today if we were able to, all I am saying is that to charge interest on interest is like kicking someone when they are down and that companies should be a bit more sympathetic and flexible if you find yourself with a lot less money per month through redundancy or reduced working hours.

nottoolate

jayson3 wrote: »

they are demanding upfront the interest we would have paid over the next few years of the loan, as far as I am aware, interest acrues over a period of time so that money cannot be demanded as it technicaly doesnt exist yet, is this correct

depends on the t&cs of the loan

if it says in those that when you default all the interest becomes payable then that is allowed

MonkeyMad

Technically you have defaulted on the loan so they are now activating whatever procedure is in the T&Cs I suppose - AFAIK there is no right for the consumer to demand reduced payments be accepted whether through a debt management company or otherwise.

Why do you think Hitachi would care a jot what you can afford to pay them back; they just want THEIR money paid back as YOU promised them it would be. I sympathise with your reduction in income, but they would have expected you to have made provision for this before borrowing.

Look at it from their point of view - if you reduce the payments to them, they now have a lot less income than they were expecting to get (sound familiar?), yet they should shoulder this burden at no cost at all?

Apples2

jayson3 wrote: »

our finances have been scrutinised by the debt managment company

Could you divulge to us who the DMP company is?

I'm hoping you are going to say the CCCS or Payplan who would represent you for free.
If you are with some bunch of crooks who called you out of the blue or you saw a shiny advert for, things may be worse than you imagine.

jayson3

it is payplan