GE Money Secured Loan Letter

peetie43

Hello Everyone !!!

I was wondering if any of you have received a Letter from GE Money regarding a Secured Loan??

I have been paying £247.43 per month by Direct Debit and now i receive this letter telling me that because GE Money have made a mistakeas a gesture of goodwill have reduced my Loan by £2035.47,but now i have to pay £346.48 per month??????????

Below is the exact wording in the letter :

Mortgage Owner : GE Money Home Finance Limited

Dear Mr & Mrs

Why we are writing to you
We have recently concluded a review of your account andhave found that your monthly instalments have not always changed when theinterest rate on your account changed.

Since opening your account,interest rates havefluctuated.The interest rate applied to your account is currently 13.478%,andis linked to GE Money’s base lending rate.

As your monthly instalment has not always changed toreflect the fluctuation in GE Money’s base lending rate,you have not beenpaying enough to make sure your loan is repaid within your agreed term.

What we have done to help you repay your loan within theagreed term
We have calculated that the total amount underpaid onyour account as of 8th May 2012 as a result of this matter is£2,035.47-and we have reduced your account balance by this amount as a gestureof goodwill.You will see this transaction reflected on your next annualstatement.

Any fees and charges that may have been applied to youraccount during the term are not affected by this issue.

Your notice of payment change
We have adjusted your monthly instalment to reflect thecurrent rate on your account.

Your monthly instalment will be £346.48 with effect from1st June 2012.

Please note your monthly instalment will change inaccordance with future fluctuations to GE Money’s base lending rate.At thatpoint in time you will receive a Notice of Payment Change advising you of yournew monthly instalment and the effective date.

What you need to do now
If you are currently paying by Direct Debit you do notneed to take any further action,we will collect your new payment automatically

If you pay by any other method you will need to take thenecessary action to increase your monthly payment to £346.48 as quoted above.

We are sorry this has occurred and have now changed ourprocesses to ensure this does not happen again.



ENDOF LETTER

peetie43

peetie43 wrote: »

Hello Everyone !!!

I was wondering if any of you have received a Letter from GE Money regarding a Secured Loan??

I have been paying £247.43 per month by Direct Debit and now i receive this letter telling me that because GE Money have made a mistake so as a gesture of goodwill have reduced my Loan by £2035.47,but now i have to pay £346.48 per month??????????

Below is the exact wording in the letter :

Mortgage Owner : GE Money Home Finance Limited

Dear Mr & Mrs

Why we are writing to you
We have recently concluded a review of your account andhave found that your monthly instalments have not always changed when the interest rate on your account changed.

Since opening your account,interest rates have fluctuated.The interest rate applied to your account is currently 13.478%,and is linked to GE Money’s base lending rate.

As your monthly instalment has not always changed to reflect the fluctuation in GE Money’s base lending rate,you have not been paying enough to make sure your loan is repaid within your agreed term.

What we have done to help you repay your loan within theagreed term
We have calculated that the total amount underpaid onyour account as of 8th May 2012 as a result of this matter is £2,035.47-and we have reduced your account balance by this amount as a gesture of goodwill.You will see this transaction reflected on your next annual statement.

Any fees and charges that may have been applied to youraccount during the term are not affected by this issue.

Your notice of payment change
We have adjusted your monthly instalment to reflect the current rate on your account.

Your monthly instalment will be £346.48 with effect from1st June 2012.

Please note your monthly instalment will change inaccordance with future fluctuations to GE Money’s base lending rate.At that point in time you will receive a Notice of Payment Change advising you of your new monthly instalment and the effective date.

What you need to do now
If you are currently paying by Direct Debit you do not need to take any further action,we will collect your new payment automatically

If you pay by any other method you will need to take the necessary action to increase your monthly payment to £346.48 as quoted above.

We are sorry this has occurred and have now changed our processes to ensure this does not happen again.



END OF LETTER

Advice Needed Please

thegirlintheattic

If you cannot afford the new repayments get onto them and ask them to make the term longer.

Dunroamin

They seem to be saying that you've been underpaying and that the £2k reduction is them covering this underpayment. Presumably the idea is that your new payment reflects the amount you should be paying now the correction has been made.

Whether this is correct or fair I'm afraid I don't know.

Apples2

Seems fair, you've struck lucky over 2k shaved.

mrcow

13.47% on a long term secured loan? They saw you coming.

I'd been looking at what the redemption figures are on this loan and seeing if ditching and switching is a viable possibility. How much is the loan for and what is the term? What are the redemption figures? What was the loan for - do you have other debts?

As far as what they've done, if you've signed up to a variable rate agreement, then you need to look at what your original agreement says in terms of how the interest rate is calculated. Only then can you determine whether what they have done is above board.

mel.coulson

Well i wonder if anyone can help me...i unfortunately am not so lucky as to have had 2k knocked off...i on the otherhand have been told that i have been underpaying for the last 7 years(which should have been 6 but i got in trouble with it so i had to extend a year). I have just 5 months left of the loan and i received a letter last week saying that my payments need to change from 292.75 a month to 972.96 a month to finish the loan on time, as a good will gesture they would recredit me Octobers miscalculation. I do not have the extra money so they said that i could fill in a means form. Is this correct? Can they really increase my payment by such a dramatic amount, and why should i have to tell them all about my finances because they have made a mistake?

happycamel_2

Difficult one, presumably you knew the balance remaining, they must have been sending at least annual statements and with the term nearing knew that your payments wouldn't clear the balance.

I'd call them and see if you can negotiate an interest free extension to clear the debt over whatever period is necessary if you maintain your payments.

cashhour11

Well, I didn't get this loan offer but these type of emails are many people use to find in their inbox but as a fact it is just a spam nothing else, I suggest you to do not waste time in.

sammyjammy

cashhour11 wrote: »

Well, I didn't get this loan offer but these type of emails are many people use to find in their inbox but as a fact it is just a spam nothing else, I suggest you to do not waste time in.

Have you read the original post? Its not a loan offer its restructuring of an existing loan, the OP received a letter not an email....

Evenfields

mel.coulson wrote: »

Well i wonder if anyone can help me...i unfortunately am not so lucky as to have had 2k knocked off...i on the otherhand have been told that i have been underpaying for the last 7 years(which should have been 6 but i got in trouble with it so i had to extend a year). I have just 5 months left of the loan and i received a letter last week saying that my payments need to change from 292.75 a month to 972.96 a month to finish the loan on time, as a good will gesture they would recredit me Octobers miscalculation. I do not have the extra money so they said that i could fill in a means form. Is this correct? Can they really increase my payment by such a dramatic amount, and why should i have to tell them all about my finances because they have made a mistake?

Hi there, did you ever get this resolved? I think you definately need to file a formal complaint with GE. It is clearly not your fault nor anyone elses if they have been negligent and miscalculated your loan repayments. As a lender they have a duty to inform you that your payments have changed. Also it is worth noting that if they have issued you with annual statements and have not quoted the new interest rate or payments or this miscalculation has affected the opening and closing balance, then I believe they would be in breach of the CCA1974 Section 86 and would not be entitled to charge interest for the period of non compliance. Technically you could argue that they have caused you to be in arrears and then ask why they haven't issued any Notices of Sums in Arrears to you which they are lawfully required to do and cannot charge interest if they have not.The whole point of statements and why this section was brought in is to make sure customers know exactly what the balance is and what needs to be paid. I had a similar situation although slightly more complex and they repaid the miscalculations plus compensation. If you don't make a complaint, then they will just expect you to pay even though you need not do so. You can make a complaint via the telephone and even if you have now finished the loan. I am now exploring the effect of their non compliance with my own loan and I believe in the light of the NRAM mistake ( which was similar as it dealt with the same effect although slightly different cause) together with the wording of Section 86 and its clear effect of non-compliance on the creditor, that they will have to refund any interest paid or due when they have not lawfully complied.