Nemo Loan Help!

suzy83

Long story but will try and be short.

I got a joint secured loan of 20k with my ex. things went bad and i had to sell up. basically the house was sold and the mortgage was paid off but there was a short fall due to selling the house cheap cos my ex wasnt giving me any money to pay the mortgage and was nearly up for reposession.

Anyway 19k was paid to the loan company. now there chasing me for 9k. i have written to them to ask how the hell they have got this outstanding balance when i only borrowed 20k and paid back 19k.


i have asked to pay half the loan as my ex is left all debts to me. i have written to them 6 times and no reply.

ive even spoken to them on the phone and they said put it all in writting and they will let me know.

just wanted to no what i should do.

scotsgirl_3

Hi

It depends how they work out the figures, but the most likely thing is that the interest has been added on at the start of the loan, and as you didn't pay back enough to settle it completely you won't have been given a rebate on this interest - so this is most likely what they are chasing. In terms of being able to only pay half, they are unlikely agree to this as with the vast majority of joint finance agreements you are both liable for the full amount - either together or apart - so if she isn't paying the responsibility falls to you, in their eyes.

Hope this helps

suzy83

thanks for your advice.

its just that they havent replied to any of my correspondance that i have sent them.

last time they wrote to me was telling me how much was outstanding and that was all, nothing to say how much i need to pay each month or nothing.

suzy83

also i forgot to mention that on the letter they sent me last stated how much was outstanding it was still a secured loan. how can this be when theres nothing for it to be secured to??

Zeusie

My limited understanding is that in order for your solicitors to have been able to sell your house for you, they must have received a discharge from anyone who had a charge out over the property (i.e. your mortgage company and Nemo).

If Nemo provided this discharge to your solicitors in order for the sale to go through, then Nemo must have accepted that they were going to have to pursue you (and your ex-partner) for the shortfall in the loan, and unless either of you bought a new property over which the outstanding debt was secured, then the debt would now be a joint personal debt for both of you.

However, if either of you did buy a new property when you sold your old one, it might be that the the debt is now secured over that.

Unfortunately, secured loans from companies such as Nemo front load the interest, which means you have to pay most of the interest off before even starting to pay off the amount they loaned you. This, and the fact that the penalty payments you are hit with in order to redeem (all or part of) the loan will mean that even if you pay the loan off early, the sum required in order to do this is hefty.

Best thing to do is to try and get a statement from nemo regarding the loan account, as well as a breakdown of penalties/fees etc which have been applied to the loan account in connection with the part redemption (i.e the part repayment made with the proceeds of the sale of the house), in order that you can check yourself that the amount they are suggesting is outstanding is in fact accurate.

suzy83

i didnt buy another house due to financial difficulties so i was put up in a council home.

the loan company agread the sale of the house to go through.

its just that ive written to them and spoken to them and im not getting any response from them.

thanks sue

Rafter

To still owe that much you must have said yes to 'payment protection insurance'

With secured loans this is added to the loan up front and only tiny amounts refunded if you do settle early.

Do you have any case to say you were missold this insurance? You might if you think you may not have been able to claim due to existing medical condition, self employment, or if at any stage you were told the loan would be conditional on you taking the insurance?

R.

suzy83

yes i have payment protection on the loan, i cancelled the insurance when i was selling my home. i asked for a brake down and it came to 13k - the insurance taken off leaving 9k.

i have asked for a proper brake down what monies have been paid and how they have come to this figure but no response from them.

there not even chasing me for monthly payments or anything. all i no is that i owe 9k.

just want to know what do i do from here. do i write to them again and say " as i have had no response i take it that the account has been written off!??

danno_4

suzy83 wrote: »

Long story but will try and be short.

I got a joint secured loan of 20k with my ex. things went bad and i had to sell up. basically the house was sold and the mortgage was paid off but there was a short fall due to selling the house cheap cos my ex wasnt giving me any money to pay the mortgage and was nearly up for reposession.

Anyway 19k was paid to the loan company. now there chasing me for 9k. i have written to them to ask how the hell they have got this outstanding balance when i only borrowed 20k and paid back 19k.


i have asked to pay half the loan as my ex is left all debts to me. i have written to them 6 times and no reply.

ive even spoken to them on the phone and they said put it all in writting and they will let me know.

just wanted to no what i should do.

Hi,you say you have sent letters and they fail to reply.keep the copy letters and await a response,if they respond remind them that the loan was joint and several tell them to approach the other person not just you,also explain that you are living in rented acomadation and have no assests of any kind then leave the ball in there court,i come across this many times it's bulling tacticts hoping that you give in and pay them what they ask for.if they ask for a income & expenditure form supply one if it shows that there is no disposable income what are they going to do?spend a lot of money in court costs nowing that they have little chance in succeding to get bany money out of you.call there bluff.

good luck

WH39

Hi

As you are not getting a respond to your letters I would suggest you send a copy of all letters to date by recorded delivery. Its my understanding they are obliged to acknowledge your letters within a stated time.

suzy83

thanks all,

i will send all the letters by recorded delivery and ask why i have had no response.

will let you now of the outcome.