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Creditor insisting I pay future interest!
ferret88
Posts: 24 Forumite
Hello.
I'm in the process of starting a DMP (which seems to be going painfully slow) and am still getting a lot of hassle from my creditors.
Northern Rock in particular have been annoyingly intractable. I took a loan out with them in September 2005 for around 17k. Now after a year I should owe just shy of 16k but they are insisting I must pay 23k! I'm assuming this is including the entire interest over the 20 month term (I'm not sure where the amount that I pay for the payment protection falls into that amount, I tried to cancel this payment last year but they wouldn't let me, I can't see the point of paying that now that it has been established I can't pay it off at all).
Can they do this? Just because I can't pay it off at the amount they arranged surely doesn't mean I have to pay future interest in one go? If I settled the loan now they wouldn't add this interest in. It all sounds a bit cynical and money-grabbing to me. They are probably covering themselves for risk but after all they're not exactly a small business and they maybe shouldn't have given a 17k loan to someone who, at the time, was only earning 10.5k a year and had only been in the job for a month!
The laughable thing is the letters I'm getting from these creditors or the creditor's representatives asking for immediate payment! :rotfl: Yeah I'll pay off 23k immediately, just give me a minute to count the coppers in my piggy bank and have a look behind the sofa:p
F
I'm in the process of starting a DMP (which seems to be going painfully slow) and am still getting a lot of hassle from my creditors.
Northern Rock in particular have been annoyingly intractable. I took a loan out with them in September 2005 for around 17k. Now after a year I should owe just shy of 16k but they are insisting I must pay 23k! I'm assuming this is including the entire interest over the 20 month term (I'm not sure where the amount that I pay for the payment protection falls into that amount, I tried to cancel this payment last year but they wouldn't let me, I can't see the point of paying that now that it has been established I can't pay it off at all).
Can they do this? Just because I can't pay it off at the amount they arranged surely doesn't mean I have to pay future interest in one go? If I settled the loan now they wouldn't add this interest in. It all sounds a bit cynical and money-grabbing to me. They are probably covering themselves for risk but after all they're not exactly a small business and they maybe shouldn't have given a 17k loan to someone who, at the time, was only earning 10.5k a year and had only been in the job for a month!
The laughable thing is the letters I'm getting from these creditors or the creditor's representatives asking for immediate payment! :rotfl: Yeah I'll pay off 23k immediately, just give me a minute to count the coppers in my piggy bank and have a look behind the sofa:p
F
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Comments
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Yep. they can and frequently do if you enter something like a DMP so they've got the highest chance of getting as much out of you as possible. Nice of them, isn't it?Total 'Failed Business' Debt £29,043
Que sera, sera.
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