Ocean Finance!!!!!

ZANDRA13

Hi, New to the forum. I got a loan from Ocean Finance in 2009 . It is a secured loan of £ 22,500. I got the loan direct from OF and i had to pay Broker fees of £ 2,810 before i could have the loan (this was added to the loan) making it £25,310 in total . According to the loan agreement the interest fee for the broker over the loan period is £4,953.40. Does this sound right to anyone in the know??. I was desperate for the loan at the time as it was for consolidation purposes. Or is this ppi?. I havent missed any payments of £345.33. included in that is £43.13 of the Brokers fee. I recently asked for a settlement figure , it was £26,000. Absolutely gutted that all this is actually legal, or is it ??? Any answers would be welcome.:mad::mad::mad:

happy_bunny_2

Not PPI. Sounds like interest over the life of the loan on the brokers fee.

Legal, yes, moral is another issue.....

Clive_Woody

What is the term and APR for the loan?

If you have made nearly 4 years of repayments (guessing this is around the £15,000 mark) with no missed or late payments it does seem odd that the settlement figure would be higher than the original loan.

What does your contract say about any early repayment fees?

tinkerbell28

Sounds to me like an incredibly high interest secured loan over 10 years.

Looking at the interest they were going with on the brokers fees, then the loan itself, it looks like you've just barely tapped into the capital, (the loan and fees) so have been paying interest mainly up to this point. Then with some early termination fees thrown in, if they do....I can see how they got to 26k.

Legal? Yes. For what it's worth I don't think you're the only one. I think all these release the equity type loans will see huge economy problems in a few years.

People took the money out of their house in good times for stupidly crazy rates, to go to Disney or consolidate all their debt and excessive spending.

When things like HTB end, interest rates nudge up. I think these loans will finish people off tbh. More toxic debt on more toxic debt.

iolanthe07

A lot of these awful loans had variable interest rates, which only ever seemed to go up. This may explain the huge cost of this loan, but without more information it is difficult to advise.

swingaloo

Sorry but its legal. We had a loan with Swift and when we settled we owed around £8000 more than the initial loan figure even though we had made payments for years. Our solicitor looked at the paperwork and advised there was nothing we could do.

fozmcfc

I'd say there is a high likelyhood the figures will be correct.

These loans are made out to be a godsend, only pay back £87, after borrowing £10k etc, people jump at it.

Then about 5 years or so down the line, when in some cases, their situation has improved, they decide to look and think, we must now only owe about £8k, but then they see that that £87 has to be paid for 25 years and that £10k loan is really costing £26k to pay back, so the settlement figure is still £12k - £15k.

First Plus, Picture, Nemo, Ocean, Norton Finance etc...etc.... all offered these sort of ridiculous loans, but thankfully it looks like they are no longer targeting people via regular tv adverts anymore and some not lending at all.

It's difficult, because on one hand they were targeting desperate people in debt, but on the other, there TV adverts, always showed, that that £10k loan, paying £87 back, meant a total of £26k to be paid back.

tinkerbell28

fozmcfc wrote: »

I'd say there is a high likelyhood the figures will be correct.

These loans are made out to be a godsend, only pay back £87, after borrowing £10k etc, people jump at it.

Then about 5 years or so down the line, when in some cases, their situation has improved, they decide to look and think, we must now only owe about £8k, but then they see that that £87 has to be paid for 25 years and that £10k loan is really costing £26k to pay back, so the settlement figure is still £12k - £15k.

First Plus, Picture, Nemo, Ocean, Norton Finance etc...etc.... all offered these sort of ridiculous loans, but thankfully it looks like they are no longer targeting people via regular tv adverts anymore and some not lending at all.

It's difficult, because on one hand they were targeting desperate people in debt, but on the other, there TV adverts, always showed, that that £10k loan, paying £87 back, meant a total of £26k to be paid back.

Purple were another. I'll never forget it I could see the credit crunch happening then.

In the boom times I dread to think home many people now owe all of these sharks on top of a mortgage. Gold help them if interest rises.

They used to advertise every set of advert break, "release the equity". Showing adverts for cars, holidays, improvements, or just a treat yourself.

It made people feel rich. Or like they could just run up debt and "tap into the house" to clear it.

I honestly think we haven't seen the worst of it yet with regards to the economy.

dealer_wins

Its staggering that anyone would sign up to a loan like this.

tinkerbell28

dealer_wins wrote: »

Its staggering that anyone would sign up to a loan like this.

But they showed shinies and it's ok.....because it all came from the rising value of your house.

I really don't like these companies, they were the payday loans and gold sellers which we have today, of the boom times.

Utter sharks.

Apples2

Blame Carol Vorderman, it's all her fault :laugh:

To be fair, we still read on here everyday posts from people desperately looking for that consolidation loan. It still seems so appealing to people who really do think it is "just one easy to manage payment".

Consolidation loans still seem so easily affordable when searching them out.

To the OP - You should seek confirmation they have given you a Settlement Figure as opposed to an outstanding balance.

You should also consider the options you faced at the time. If you hadn't taken this obscene loan, could you have managed at the time, if you could, why take the loan? if you couldn't, maybe you would have gone BR.

Adding the arrangement fee to the loan is the same as a lot of posters who want to include a years insurance on their car loans, it's just crazy as it ends up costing so much more (even more in your case).

It's quite alarming how so many will simply ignore advice when the options are on the table, only to regret things later on.