secured loans & charges

gaz0909

Hi

I have only just joined so was looking for advice pls.

I took out a secured loan of £20,000 for home improvements 7 yrs ago. My monthly payment is £282.00, i got into arrears and now i pay £300.00 a month of which £18.00 a months goes towardsthe arears and have done for 3 yrs now and have not missed a payment to date.

However i still get letters each month and nearly every month that i am still in arrears and every month they charge me £60.

This way i will never pay the arrears off , in fact if they keep charging this amount i will owe more than than i borrowed.

The company is central lending in Watford......Is charging £60 per month legal, after all i always have paid on time every time and both myself and the company agreed that paying £300.00 a month would sufice.

Any help on this would be great

Thanks

27col

You say that you have always paid on time. But obviously you haven't always paid on time, because if you had, you would not be in arrears. But it does sound as if a bit of professional advice would not go amiss.

[Deleted User]

£60 a month for a letter is harsh,what are the t&c`s in the contract regarding this?(not got one?then ask for a copy),my first port of call would be to find out who the ceo of this company is and write to him politely complaining,suggesting nicely that you will seek legal advice if they cant reduce this substantially or remove it,if you get no joy then go and see your local CAB or contact one of the debt charities for advice(cccs is one)
another idea if you have equity in the property would be to see if your mortgage lender could give you an advance to clear this loan,or sell up and pay them off