Speed loan LPI

emadie_2

I took out a loan in 2011 with speed loan for a twelve month period.

I cancelled the direct debit with two months left to pay. I have tried to get in touch with speed loan via letter to try and pay the arrears but I have never had a response. I got home today and a statement has been sent from them advising that in the last twelve months I have accrued LPI (late payment insurance). This is the first I have heard of this and wondered if they are able to do this. I now owe them more than what the original amount of the loan was in the first place.

I have never received a statement from them before.

PLease help!!!!!!!:(

Eonel

The situation you describe should not really come as a suprise - it is what you can expect to happen if you just cancel the DD from a subprime loan provider.

You would need to look at the Terms & Conditions of your loan to see if they can add Late Payment Insurance. You will find there are clauses for fees and interest they can add. The charges may not be fair or reasonable, but it is what you signed up for and they will not just relent on them.

You need to get in contact with Speed Loan to arrange a plan to get the payments back on track. If this is not fruitful, or if you have other defaulted debt, you should think about approaching a debt charity to discuss a Debt Management Plan.

DCFC79

emadie wrote: »

I took out a loan in 2011 with speed loan for a twelve month period.

I cancelled the direct debit with two months left to pay. I have tried to get in touch with speed loan via letter to try and pay the arrears but I have never had a response. I got home today and a statement has been sent from them advising that in the last twelve months I have accrued LPI (late payment insurance). This is the first I have heard of this and wondered if they are able to do this. I now owe them more than what the original amount of the loan was in the first place.

I have never received a statement from them before.

PLease help!!!!!!!:(

Why would you cancel the DD ?

Did you have difficulty paying the loan off or something ?

Apples2

emadie wrote: »

I took out a loan in 2011 with speed loan for a twelve month period.

I have never received a statement from them before.

I suppose they didn't think it was worth sending an Annual statement on a 12 Month loan.

I'm sure you had good reason to cancel the DD after making 10 out of 12 payments but it is absolutely normal in cases like this to owe more than you borrowed. Whether that be right and proper or not is another argument.

The dates confuse me though, if you took it out in 2011 and made 10 regular payments, how come there are 12 months worth of Late Payment Insurance fees added unless it was taken right at the start and ignored for a year?

iolanthe07

I cancelled the direct debit with two months left to pay.

Why on earth did you do that? Did it not occur to you that there might be unpleasant consequences? Low end bottom feeding lenders are not noted for being generous to borrowers who just stop paying.