Letter help to secured loan company

emi2008

Hi all

I hope someone can help

I have been advised by an "X" financial advisor that I could get out of my 25 year secured loan by asking the lender for a settlement figure not including the interest, then send a cheque to the value of the capital less £1, then the outstanding balance the following month will be £1 plus interest on £1. (as interest calculated monthly?)

He advised that it is a clause in the consumer credit act and that legally I am only obliged to pay the outstanding balance of capital if i wanted to settle the debt?

can anyone confirm if this is correct as I cannot find any info on this. and how could write a letter requesting the balance (capital)

option 2 : also advised that if I tell the lender that due to a change in circumstances I can no longer keep up repayments and make them an offer to settle the account they may consider this as they are well aware there is no equity in the house for the 1st charge never mind the 2nd.


thanks in advance to anyone who can advise

Tixy

Hi

Have you checked your secured loan agreement to see if its covered by the consumer credit act?

Apples2

emi2008 wrote: »

option 2 : also advised that if I tell the lender that due to a change in circumstances I can no longer keep up repayments and make them an offer to settle the account they may consider this as they are well aware there is no equity in the house for the 1st charge never mind the 2nd.

Doesn't it seem a bit suspicious saying you cannot afford the Monthly payments but here's a £15k bucket of cash to clear it now?

dealer_wins

Another wind up/idiot or someone about to fall for an advance fee scam I reckon.

emi2008

Tixy wrote: »

Hi

Have you checked your secured loan agreement to see if its covered by the consumer credit act?

No, I don't know anything about it (tbh its not my loan) but will look into it, I can't imagine it's not, being a very well known company, why would't it be as CCA is for the consumer ??? not foe the company, what do you mean by this ?

emi2008

dealer_wins wrote: »

Another wind up/idiot or someone about to fall for an advance fee scam I reckon.

It is a genuine, no company, no fee, no upfront just friendly advice from a financial advisor (not a friend but acquaintance) that has been backed up by another financial company that i sought advice from, but I just want to find out how to go about it and to see if anyone was familiar with the procedure.

mynameistallulah

emi2008 wrote: »

It is a genuine, no company, no fee, no upfront just friendly advice from a financial advisor (not a friend but acquaintance) that has been backed up by another financial company that i sought advice from, but I just want to find out how to go about it and to see if anyone was familiar with the procedure.

Please let us know the name of this "financial company" that has given you this *gem* of knowledge!

emi2008

Apples2 wrote: »

Doesn't it seem a bit suspicious saying you cannot afford the Monthly payments but here's a £15k bucket of cash to clear it now?

I am trying to find out information to sum up which way is best to help my situation, not to do both, I can pay the outstanding balance of capital from other sources, or can pay a lump sum to end the loan......one or the other hence I am asking for advice on letter writing before I basically blow my cover ..,if u like.

I only want to get rid of secured loan because

1) me and partner was stupid and desperate to sign to such high interest rates and long term cos we thought it was out only option and did not know any better

2) we now understand from research that we have been shafted and the sales person is nowhere to be found

3) we need to move house (2 kids later) but the loan is stopping us......our joint income id £50k+ but stuck

4) the interest we will pay over 25 years is ludicrously scandalous and frankly should not be allowed and are looking for ways to get out of paying these robbers.


I have also heard that the company will jump at an offer quote "15k" as alot of houses are neg eq ...... who knows I am only asking for advice ...not critisism ! If what i have been advised from a couple of GENUINE sources is wrong then we will take it on chin and continue to pay the rob dogs for the next 20 years but who will know what the outcome is until we ask the question......!

emi2008

mynameistallulah wrote: »

Please let us know the name of this "financial company" that has given you this *gem* of knowledge!

Initially advised by retired financial advisor and confirmed by Direct Debt Solutions ......... do you want a telephone number ?...again I am only looking for advice if you havn't got any why bother??? I take your comment as sarcastic .... I repeat if the advice I have been given in wrong ..then so be it...please do not judge, joke, or presume my stupidity ...I am trying to resolve a seriouse situation .......!

Tixy

emi2008 wrote: »

No, I don't know anything about it (tbh its not my loan) but will look into it, I can't imagine it's not, being a very well known company, why would't it be as CCA is for the consumer ??? not foe the company, what do you mean by this ?

Because the amount borrowed might have been too high to be covered by the consumer credit act at the time taken out.
Because not all secured loans were/are covered by it.

Checking the paperwork is fairly essential if you want to pay off any loan early.

I'd imagine a discount on settling early is unlikely assuming you are up to date with repayments (obviously its not worth getting behind with repayments just to get a discount - as you'd wreck your credit file). I know of no lender that offers everyone a discount becase some people are in negative equity. At the very least they'd check specifically if you are and then consider you ability to pay based on your financial circumstance.

emi2008

Tixy wrote: »

Because the amount borrowed might have been too high to be covered by the consumer credit act at the time taken out.
Because not all secured loans were/are covered by it.

Checking the paperwork is fairly essential if you want to pay off any loan early.

I'd imagine a discount on settling early is unlikely assuming you are up to date with repayments (obviously its not worth getting behind with repayments just to get a discount - as you'd wreck your credit file). I know of no lender that offers everyone a discount becase some people are in negative equity. At the very least they'd check specifically if you are and then consider you ability to pay based on your financial circumstance.

Thank you for your advice I will look into this