Black horse loan default advice needed

pinkswim · 18 January 2012 at 8:50PM

New to this, just want some advise.

Been on reduced pay arrangements with my debts due to not being able to work due to illness.

All outstanding credit cards have accepted plan, stopped charges & interest etc no probs.

Except Black Horse finance!

Outstanding loan with Black Horse Finance, borrowed £9000.

Can't make sch pays of £212 so after income & expenditure plan offered £52 p/m.

They accept this however they have just sent me a statement and every month I make a pay of £52 they add £112 interest like they were when I was paying the £212!!

They advise they can do this and I still have to pay back the original amount borrowed plus all interest totalling about £15000.

If I continue at this rate it will take me approx 20 years to pay!!

My money situation will not get any better ....is this what happens??

Has anyone been abe to get the interest stopped like my credit cards have done??

Feel like i'm completely trapped and can't see any way out..... any advice appreciated.

Tixy · 18 January 2012 at 8:54PM

First try writing to ask them to reconsider freezing interest - there is a template on national debtline you can use as a starting point - and you might want to refer to the lending code section (wait I'll just check which section).

Sometimes this can have a result.

Edit - see posts 4 & 6 of this thread https://forums.moneysavingexpert.com/discussion/3698167

pinkswim · 19 January 2012 at 3:36PM

Thanks for your advice I will take a look at this and give it a go.....any advice about anyone successfully stopping interest with black horse would be much appreciated.

magsmc · 18 March 2012 at 9:12PM

Hi just to let u know i was in the same position i had to reduce my payments i was paying £300 a month and only £50 0f that was coming off my bill after several phone calls blackhorse still were reluctant to stop the interest they said they cdnt bacause my loan was secured in the property !!!!!! it was all lies i took my complaint to the ombudsman and i won. blackhorse had to refund all the interest onto the account from when i had first contacted them about it . so now every payment i make comes off the outstanding balance. So go for it make sure u keep copies and dates of letters you have sent to black horse but do get in touch with the ombudsman, margaret