Really need help regarding a loan

InC

Hi

I took a loan out a few years ago for 21000. I now have 11000 left to pay on it.

My payments were all going to plan (I never missed one). I am paying £440 a month.

Last year I contacted and asked the loan company if I could lower my loan payments or take a payment holiday for a few months. I was advised to pay £110 a month and we agreed I would do this for 6 months.

6 Months went by I never missed a payment and I went back to paying £440.

I then began receiving letters from a debt collection agency stating I owed £1940 (The difference between £440 and £110 over 6 months)

I contacted he loan company and they advised me it has now gone to the debt collection department so I needed to speak to them.

The loan company had placed me on an arrangement to pay scheme. This has drastically ruined my credit score which was perfect until then. I was never explained by the loan company going on this scheme would affect my credit score. I believed it was an agreement I made with them.

I contacted the loan company and filed a complaint regarding this and was contacted via phone. I was told I didn’t have a strong enough case so this couldn’t be removed from my credit rating.

Im still paying £440 a month but still am with the collections department owing £1940. Every month still it shows on my credit I am behind with payments.

I tried to take out another loan to clear this one, but obviously because my credit score is now bad I have been refused multiple times.

My mortgage came to and end I tried to remortgage and have been refused by every company again cause of my credit score.

That’s the background now for my questions.

Can this be removed from my credit rating?

Is there anyway I can lower my monthly bill of £440 a month?

Thanks

[Deleted User]

I doubt they will remove it from your creit file. It's a statement of record that you failed to keep up with the payments.

In terms of lowering your monthly payments, your options for another cheapr or longer loan will be slim to non existent. Another arrangement to pay or a default are probably your only options, if you can't get access to alternative credit.

poppasmurf_bewdley

You asked them if you could do something? They said yes.

Now you are complaining that they let you.

Doubtless, they believed you knew what you were doing when you asked the question.

Apples2

It all sounds right and proper (sadly for you).

If you hadn't had the agreement but made lower repayments, you would now owe an awful lot more than the difference in payments. Your debt would have accrued more interest each month.

Sounds like they froze the additional interest and penalty fees so you simply have to make up the difference.

You can't drop payments without affecting your credit score or everyone would do it. They would have assumed, probably by your insistence, that you simply could not maintain the payments for those 6 months.

Clive_Woody

It does seem a bit harsh that you contacted them and they agreed to 6 months of reduced payments but then sold this off to a debt collector.

Do you have it in writing that they agreed to a reduced payment?

InC

Clive_Woody wrote: »

It does seem a bit harsh that you contacted them and they agreed to 6 months of reduced payments but then sold this off to a debt collector.

Do you have it in writing that they agreed to a reduced payment?

No i haven't i didn't see this coming (lesson learnt) i didn't keep any correspondence.

Im considering taking out a credit card to pay off the collection company so at least I'm shown up to date and my credit starts to reform itself.

Cant think of any other option?

Any other suggestions?

somethingcorporate

If you have been refused for loans etc all over the place then chances of you getting a credit card are slim to none.

Is there a cause for not being able to pay back the loan at the going rate?