Loan on payment arrangement

pigsmightfly

Hi,

Just wondered if someone could explain something to me please

I have a loan that got put onto a payment plan as I could'nt afford the monthly payments at the time. Since this happened, when I look at the balance of my loan, it is going down by what I pay each month. However there is a note to say the balance shown is not the actual balance of the loan.

My question is, when this balance gets to zero, what happens? I understand that as I am on a payment plan I am technically underpaying each month so start to accrue arrears but what happens to these and why aren't they shown?

Hope this makes sense and if someone can explain it to me I would be grateful. Just starting to plan to pay them off so would like a better idea of where I stand with my total debt really.

Also, I have this set up on 2 loans, does what happens differ between banks or is there a set thing that happens?

Thanks

[Deleted User]

I would think "going by my own" that the arrangement also includes a reduced rate of interest, so as such if you have created a payment plan from now until the end of the balance then you should not have anything further to pay. You may however have agreed just a set time period, and as such you need to check this.

On my loan that I have it states "this is not a repayment figure", meaning early repayment, is this what you mean?

pigsmightfly

assj wrote: »

I would think "going by my own" that the arrangement also includes a reduced rate of interest, so as such if you have created a payment plan from now until the end of the balance then you should not have anything further to pay. You may however have agreed just a set time period, and as such you need to check this.

On my loan that I have it states "this is not a repayment figure", meaning early repayment, is this what you mean?

It just says when I log into my online banking on whenever they send me up to date statements that "The current loan balance is not the amount you’ll need to repay on your loan".

Also, when I set up these payment plans (one has just been very recent due to me being on maternity leave) they said to me via email "Your contracted monthly installment is £XXX, therefore as you are now underpaying, arrears will start to accrue at a value of £XXX per month. This will be reflected on your credit file each month. Interest is unaffected by the arrears on your account."

I'm not really sure what this means but surely if I'm accruing arrears they won't just write these off?

Thanks

[Deleted User]

pigsmightfly wrote: »

It just says when I log into my online banking on whenever they send me up to date statements that "The current loan balance is not the amount you’ll need to repay on your loan".

Also, when I set up these payment plans (one has just been very recent due to me being on maternity leave) they said to me via email "Your contracted monthly installment is £XXX, therefore as you are now underpaying, arrears will start to accrue at a value of £XXX per month. This will be reflected on your credit file each month. Interest is unaffected by the arrears on your account."

I'm not really sure what this means but surely if I'm accruing arrears they won't just write these off?

Thanks

Ok that means that it is not a repayment figure in my understanding, so if you paid that amount now you may still have fees. Seems like a fairly standard statement.

Ok so you are still being charged, that's not good, did you ask them to consider reviewing the interest rate due to your current financial situation. Halifax did for me, sorry not sure who you said you were with?

Maybe worth just asking them as now you are just getting into further debt and you are not really making a saving, you could do with saving and affording a monthly payment.

Hope that makes sense and appols for my spels I am very bad!.

pigsmightfly

assj wrote: »

Ok that means that it is not a repayment figure in my understanding, so if you paid that amount now you may still have fees. Seems like a fairly standard statement.

Ok so you are still being charged, that's not good, did you ask them to consider reviewing the interest rate due to your current financial situation. Halifax did for me, sorry not sure who you said you were with?

Maybe worth just asking them as now you are just getting into further debt and you are not really making a saving, you could do with saving and affording a monthly payment.

Hope that makes sense and appols for my spels I am very bad!.

No haven't replied to them as yet as I wasn't 100% sure what to say so wanted to check on here first before I replied and said something wrong

This one is with Santander that are still charging me interest - its taken them since November last year to help me, I started contacting them once I knew when I would be finishing work as I knew obviously I wouldn't be getting my full wage anymore so would struggle and they've only just sorted it now!! Nearly a year!! Hate that company. Will email them back saying that and see what they say, thanks x

[Deleted User]

I have massive problems with Santander. I am now with the Ombudsman for this recent complaint.
I only owe them £200, I called to pay them as agreed last week and they said to me if you pay monthly it may be easier for you, so I did. I was MAD, I have now got a Default Notice from them, so I complained and all they can say was sorry it was a mistake.
When you deal with Santander, keep very good records of every call, date, time, advisor name and so on. They are difficult to deal with, however I must say when you complain they like to dish out £25 good will payments.
HTH, let me know how you get on...

pigsmightfly

assj wrote: »

I have massive problems with Santander. I am now with the Ombudsman for this recent complaint.
I only owe them £200, I called to pay them as agreed last week and they said to me if you pay monthly it may be easier for you, so I did. I was MAD, I have now got a Default Notice from them, so I complained and all they can say was sorry it was a mistake.
When you deal with Santander, keep very good records of every call, date, time, advisor name and so on. They are difficult to deal with, however I must say when you complain they like to dish out £25 good will payments.
HTH, let me know how you get on...

Yeah I've learnt that with them, absolutely awful company. I', only with them as my loan was originally Cahoot and it got moved to them, am surprised they have "willing" customers! Will keep you posted

[Deleted User]

Yeh I know the feeling so much, but you have to keep trying, I have found that the people that you speak to on the phone have no authority to get things done, I have also found that collections are better at making changes, however they are rude. But if you write in then you get a better response, so I would call and then confirm everything by letter, just so your covered and so that it is on file.

pigsmightfly

assj wrote: »

Yeh I know the feeling so much, but you have to keep trying, I have found that the people that you speak to on the phone have no authority to get things done, I have also found that collections are better at making changes, however they are rude. But if you write in then you get a better response, so I would call and then confirm everything by letter, just so your covered and so that it is on file.

Yeah have been doing everything by writing anyway as I know what certain banks can be like going back on what they say! Like to see it in black and white

pigsmightfly

Morning forum :wave:

Just wondered if anyone else had any info/experience with something like this at all. Obviously, I am aware after setting the payment plan up, they will still be owed money when the balance gets to zero but do they just go "oh its at zero now, lets pop the missed payments on there and bump the balance back up to £2,000" or whatever it may be?

If anyone's had this before would be nice to know what happened/what to expect.

Thanks all x

DerryLane29

pigsmightfly wrote: »

Hi,

Just wondered if someone could explain something to me please

I have a loan that got put onto a payment plan as I could'nt afford the monthly payments at the time. Since this happened, when I look at the balance of my loan, it is going down by what I pay each month. However there is a note to say the balance shown is not the actual balance of the loan.

My question is, when this balance gets to zero, what happens? I understand that as I am on a payment plan I am technically underpaying each month so start to accrue arrears but what happens to these and why aren't they shown?

Hope this makes sense and if someone can explain it to me I would be grateful. Just starting to plan to pay them off so would like a better idea of where I stand with my total debt really.

Also, I have this set up on 2 loans, does what happens differ between banks or is there a set thing that happens?

Thanks

Morning pigsmightfly,
I pay a loan to Halifax and pay monthly,its not on a payment plan.When I look on the internet banking site,next to the amount I owe it also says

"The current loan balance is not the amount you’ll need to repay on your loan",

maybe those words are on all of our online banking with Halifax.