GE Money Home Lending

k3esy

Hi I took a secured loan out with GE in 2006 for £30500 with the intrest rate of 10.500% my payment are £365.23 a month
I ve now recieved a letter from them saying
We have recently concluded a review of your account and have found that your monthly instalments have not always changed when the intrest rate on your account changed.
Since opening your account ,intrest rates have fluctuated. The intrest rate applied to your account is currently 10.500% and is linked to GE moneys base lending rate.
As your monthly instalment has not always changed to reflect the fluctuation in GE moneys base lending rate you have not been paying enough to make sure your loan is repaid within your agreed term
We have calculated the total amount thats underpaid to £3,383.86 and have reduced your account balance by this amount as a gesture of goodwill.
Your monthly instalments is now going to be £397.74 ( which i wount beable to afford)
We are sorry this has occurred and have now changed our processes to ensure this dosent happen again.
is there anything i can do?

HappyMJ

k3esy wrote: »

Hi I took a secured loan out with GE in 2006 for £30500 with the intrest rate of 10.500% my payment are £365.23 a month
I ve now recieved a letter from them saying
We have recently concluded a review of your account and have found that your monthly instalments have not always changed when the intrest rate on your account changed.
Since opening your account ,intrest rates have fluctuated. The intrest rate applied to your account is currently 10.500% and is linked to GE moneys base lending rate.
As your monthly instalment has not always changed to reflect the fluctuation in GE moneys base lending rate you have not been paying enough to make sure your loan is repaid within your agreed term
We have calculated the total amount thats underpaid to £3,383.86 and have reduced your account balance by this amount as a gesture of goodwill.
Your monthly instalments is now going to be £397.74 ( which i wount beable to afford)
We are sorry this has occurred and have now changed our processes to ensure this dosent happen again.
is there anything i can do?

Yes there is something more they can do. They can give you a copy of the credit agreement which allows them to do that.

[Deleted User]

do you pay by variable direct debit or standing order,the first would make it their fault the latter yours,and as they have written off the shortfall i suspect it was dd
but tbh if you cant afford £398 a month how do you manage £365
i suspect they have been quite fair with you and i dont know what else you expect them to do

banks4u

For GE money you went via a broker. It's more than likely you were miss sold that agreement. I know because I used to work for a sister company who hired lots of GE staff. Check your paper work and of you don't have it do a data request.

Etselet

I have a secured loan with GE Money. I had a lot of issues with them, and was in arrears for some time. They attempted to reposess my house a few times, and over the past 4 years have been to court in excess of 6 times, with Eversheds.

Last friday i recieved a letter from GE, stating that basically, they have done a review of my account, and they will in effect be doubling my monthly premium.

I was worried about the letter and started a trawl of the internet, and also tried to find my credit agreement. I found a wealth of information and with this to hand called GE.

I spoke to a lady, who by typical GE Standards does not listern to what you have to say, but i highlighted the following points.
GE state on there web site that the interest rate for mortgages follows the BBBR which is around 4%.
Her reply, was that i do not have a mortgage but a secured loan.i
I also asked what an unregulated loan was, and also what process they follow, and when was it changed, as have found the same letter on forums from over 12 months ago, so clearly no change of process then.

I had with me a letter dated 2007 basically saying that my interest rate had increased by .25% to 10.85%.
Naturally i asked what my interest rate was when i took out the loan, she told me 11.6%, so i challenged her, if my interest rate has increased by .25% and as you say, my interest rate is 11.6%, then i should be on 11.85%, and not 10.85%.
At this point she stated that i must have a mortgage, i told her no, she informed me that current GE Money interest rate was 12.9% and has been that since 2009. I challenged that remark, due to the credit crunch, and all she offered was a copy of GE interest rates.
I also mentioned that as i had been taken to court over 6 times, they had plenty of time to inform me that their interest rate had changed.

I then requested a copy of my loan agreement.
A copy of the interest rates over the term of my loan,
A copy of the process, that they say they have changed.
And to satisfy them a income and expenditure form.

I have received my credit agreement, and income and expenditure form.
No interest rate break down, and no process.
which i will call them for tomorrow.

The credit agreement clearly states on the top in bold
"FIXED SUM LOAN AGREEMENT REGULATED BY THE CONSUMER CREDIT ACT 1974"

Also mentions that interest will be charged at the GE MONEY BASE LENDING RATE.

As i know have a copy of my agreement i will be chasing the for selling PPI that is not worth the paper it was printed on, and there was not a lot of paper....

Any help or more info greatly appreciated..

Etselet

geoffky

consumer action group are very good at what you want..

http://www.consumeractiongroup.co.uk/forum/