Secured Loans: cheapest lending of last resort

Balmedie3

Like all the postings Secure Loans is not a way to go. I made the mistake of taking out a loan with First Plus. At 7.6% it was the cheapest loan available. When the base rate reduced First Plus did not change their rate - In fact in September 2009 they increased it by a percentage point.

I have decided to repay the loan and find that despite paying for 1 1/2 years I still owe more than I borrowed and need to pay £200 in admin/legal costs to repay. I am moving to increase my mortgage which is a way cheaper option - I am saving nearly £300 a month on a £35k loan

It was a very costly mistake and no one should ever use First Plus they do not know the meaning of customer service and only want to get the money from you.

They are a legal form of a shark loan.

SkylineDriver

Well what a carry on we have had with this company Enhance Finance. Since we applied for a secured loan on the 18th August and paid them £70 (which they said we will get back once the loan has been set up) we have heard absoloutely nothing and had to do all of the chasing.
A liitle bit of background............we registered online with credit expert (experian) to check our credit history file and on their website there is a part stating "lower my bills" so we went on to enquire and that it how Enhance Finance got in touch with us as Experian had passed over our details. After talking through an application for 40 mins on the phone and paying the £70 admin fee we were told it had been approved and paperwork was on its way. To cut a VERY long story short here we are 6 weeks later, no paperwork and no explanation to the hold up. Enhance Finance are so unproffesional its unreal, it really is! The way they speak to you on the phone is appalling. They constantly fob you off by saying the paperwork is in the post. They have been saying this for 6 weeks.

I wrote a letter of complaint into them on the 15th of Sept requesting an explanation as to what the hold up was and that I wanted my £70 back if they could not help us and they have never replied to that letter.

I called yesterday and asked to speak to a manager and they advised me that I couldnt as ALL managers in the company were on their dinner!? and they would not speak to me anyway! The guy was extremely rude and said "listen, you havent got the loan we cant help you"!!! I asked why they hadnt told me this sooner instead of fobbing me off everytime I called and his responce was "dont know"!

I asked for the £70 refund and he said we have to request it in writing and the refunds manager would review it so we may not even get this back!! We were initially told that if they could not source us a loan then they would automatically refund this money, obviously a lie!

I have done what they have asked and requested this in writing and also called my credit card company where I paid the £70 and they informed me that if they have not refunded this in 30 days from the date of my letter then they will file a claim against Enhance Finance to recover the money.

Where can I go from here about this company?? Citizens advice?

I am so fustrated and appalled the way we have been treat. They should not be allowed to get away with this.

Claire

rayz_nine

shepster81 wrote: »

never heard of them are they brokers or lenders ?

i also never heard about that..

wullbags

MSE_Andrea wrote: »

The following is the area to discuss or ask questions about the site article on secured loans, which you can click here to read.

Just wondering if someone could give me abit of advise. I had a northern rock together mortgage, it started in 1998. I stupidly took out a seperated amount for 18000 and thought it would be repaid in13 yearpaying back 200 pound a month. I am still paying it at 189 a month and have got 15389 to pay. Did not realise that it would go on for this long and that the interets would be so high, could i claim back interest charges

alisonsaye

I had a secured loan on my house and paid it off. Can i reclaim the interest back they charged me on the full amount even though it was paid off earlier ?

New_Quay_Bear

My wife and I wanted a loan of about £5,000 for a fitted bedroom.So my wife called into our bank to ask about a credit card,and came out with an offer of £18,500 over 5 years at £345.00 per month.
We have totted up our debts and they come to about £8,000,but the guy told us it was totally "do-able"as the more you borrow the cheaper the loan.(4.9%)

New_Quay_Bear

Forgot to mention,he told us our credit rating was outstanding.

Question is, should we accept?

deano1962

having recently been refused credit with alliance and leicester,with an excellent credit score,and have been with them before.since original loan divorced and sold house now in rented and re married.is it because i am no longer a home owner and why does martin lewis say unsecured is best please help?????

DAVE1968_2

Has anyone had problems with GE Money they are trying to repossess my home.I owe just over £2000,I took out the original loan in 2007 of £39000,my payments were supposed to be £405 for per month for 16 years, after paying about 8 months at this rate I then had a letter saying the payment had increased to £430 a month,5 months on it increased to £481 which i managed to pay for 2 months before i injured my back and was out of work for 3 months on basic money,the payments finally dropped to £462 which they are currently at,I have worked out that I have already paid £13000 back but the letter from their solicitors who are taking us to court say we still owe £44000,£5000 more than the original loan,I worked out if I pay £462 for the remainder of the loan term which is 14 years that works out another £77000 making a total repayment of just over £90000 for a £39000, loan.I have to go to court this thursday the 29th, Has anyone got any advice Please,They are seeking a suspended repossesion order as long as I pay £136 a week back for 30 months which is totally impossible on top of my mortgage,and also having four young children,Is their any chance the court will side in my favour with a reasonable repayment plan,Or are these Loan sharks allowed to extort money the way GE Money seem to be doing to me, Any advice and help would be greatfully appreciated.

harry.hamlin

MSE_Martin wrote: »

Nitrocat to answer your question.

1. The title does make sense. The point is they must be used correctly. The reason the article has such an extensive checklist is secured loans are only a last resort in specific circumstances. A title is a title. My reason for writing this is many people just call up the TV advertised horrors - this way people will know when ti take them and how to find the cheapest rate.

2. Savings: Of course a cash fund is great IF you're debt free (excluding mortgage debt - though with a flexi mortgage even that is debatable). However the point is paying off debt with savings with a unsecured cards as back up is in the short term and money saver and the correct move.

Martin

Very Well Said Mertin.

I'm Harry, working in a financial organization from last 8 months. Just wanted to introduce my self as new comer into the forum and hope to learn and share.