Miss sold Loan

Thrugelmir

essex21 wrote: »

You have miss understood. I am asking that 0% should be applied as they failed to send me information for 2 years after I first requested it. This information was asked for in 2010 and I did not receive it until 2012. I stopped paying them in 2010 as they were not providing information, statements etc.

Different issues to be considered here. Though non payment by yourself unfortunately doesn't work. As this act in itself meant that you breached the terms of the contract you had. So both the lender and yourself are in the wrong to some degree.

essex21

Caz3121 wrote: »

Was the loan taken over by another company when you stopped paying them (did they pass it to a debt collector?) Had they agreed to cease payments whilst you were in dispute. I would imagine that this would be a default and fees for missed payments and additional interest.
What do your credit files show?
Did you start repayments when you received the statements?

Yes the loan was sold to another company. It was not passed to a debt collector. They did not agree to cease payments, they did not respond at all for 2 years apart from saying that it is taking longer than usual to get the information I had requested. I stopped payments as my calculations at the original 10% would mean that the loan was almost paid off and if PPI on the loan they would have owed me money. They registered a default on my account in 2013 which was when I took the complaint to the Ombudsman. I have not been able to start repayments because I need to know if the loan should be recalculated at 10% or if I have to pay the loan at higher rate of interest. I have no idea what I should be paying and what is fair.
1st stage of Ombudsman ruled in favour of the loan company but had completely disregarded evidence I had sent so it has been referred up the line. 1St stage of Ombudsman does agree that terms do not mention that I should go online to see interest rate increases but felt that as I had gone to this online account when I first took the loan that is evidence that I knew I should go there to check for interest rate rises. I have been sent copies via the Ombudsman of this online account and no interest rate increase are showing on there either?! Just notes about when I had contacted them by phone as direct debit was not set up properly initially in 2006.
As loan defaulted in 2013 at least no further charges now but I am getting fed up with all the time I have spent on this and just want to know where I stand, if I should be paying off the amount that's defaulted (now back up to original amount I took out in 2006) or if I am clear of this debt as I would be if interest calculated at 10%
Thanks for your comments

essex21

Gaz83 wrote: »

Just as importantly, how do you know that they knew their terms would be changing?

They have disclosed this information to the Ombudsman during the initial enquiries

Clive_Woody

You seem fixated on the 10% interest despite this being a variable APR. I appreciate that you weren't notified by mail of the changes but via their online system you could have found out what the current APR was. You stopped payments before the balance was cleared and this was a very bad idea as this will have hit your credit file hard.

I would agree with those who state that both parties have acted incorrectly. Now you need to reach an agreement on how to move forward but I suspect you will have more to pay on this loan and may have to work very hard to get your credit file sorted out.

essex21

Clive_Woody wrote: »

You seem fixated on the 10% interest despite this being a variable APR. I appreciate that you weren't notified by mail of the changes but via their online system you could have found out what the current APR was. You stopped payments before the balance was cleared and this was a very bad idea as this will have hit your credit file hard.

I would agree with those who state that both parties have acted incorrectly. Now you need to reach an agreement on how to move forward but I suspect you will have more to pay on this loan and may have to work very hard to get your credit file sorted out.

I am fixated on the 10% because although variable I was not notified that they had varied it! The loan was to work similar to a credit card therefore I should have been given the option to have the draw more money facility taken away and keep the lower interest rate. I was not informed of any rises. I was not informed that I could get APR online and eventually the online part of the account was stopped. They were still advertising APR's of between 5% & 10% during the time they put up my rates.
Not bothered about my credit file. I had to do something to force them to respond. I am more bothered that they did not default my account sooner, that way I would not have the additional £900ish interest charges while I was waiting for statements.
Thanks for your comments though

Clive_Woody

essex21 wrote: »

I am fixated on the 10% because although variable I was not notified that they had varied it! The loan was to work similar to a credit card therefore I should have been given the option to have the draw more money facility taken away and keep the lower interest rate.

Was that in the T&Cs or is that how you would like the loan to have worked?

essex21

Clive_Woody wrote: »

Was that in the T&Cs or is that how you would like the loan to have worked?

To be honest I have so much paper work on this now that not sure if its in T's&C's or in the marketing used to sell the loan. However the loan company has agreed that the loan was intended to work like a credit card.


At the end of the day the T's & C's do not state that the only way I would be notified of additional charges would be online so I cannot see how I was supposed to know that. The Ombudsman have looked at the T's & C's and confirmed no mention of going online to check for additional charges

BillJones

essex21 wrote: »

At the end of the day the T's & C's do not state that the only way I would be notified of additional charges would be online

Unless they explicitly told you that you'd also be told another way, there is no problem with them not explicitly telling you how you'd be informed. You could have asked and found out.

essex21

BillJones wrote: »

Unless they explicitly told you that you'd also be told another way, there is no problem with them not explicitly telling you how you'd be informed. You could have asked and found out.

Interesting, thanks