Assett Link Loan- Barbaric Interest Rate

ashleigh2312

Hi all, i am posting this in regards to a loan that belonged to my grandmother. To cut a long story short my Nan had a loan with First National, which was then sold to Assett Link and now has been paid off has been passed to GE Money. Initially i had contacted First National with regards to the PPI on the loan that we are trying to claim back, and i got a response from GE Money. Ge money have since replied stating there was no PPI on the loan which is untrue as its there on the agreement in black and white but that a different story! The main reason for this post is i need advice with regards to interest rates and the amount that was applied against the loan on the statement.

The loan was taken out for the sum of £3654.32 in 1995. In 2008 the total amount owed still was more than the original agreement!!!! they had over this ridiculous period of time applied interest here and there for £2415, then again for £1956 then there was a monthly interest rate of £65.31. My Nans agreed monthly repayment for was for £70.65 and this for a period of 120 months. The total amount my nan was being charged in interest meant that after 13 years of repayments she still owed £4324.36. Upon asking them for a settlement figure they even had the cheek to offer us a reduced figure of £1928.72 to get it paid in full after 13 years of paying them back!

We had several telephone conversations with these people, and in the end my Husband paid the total amount (£1928.72) as it was making my Nan ill. She had calls threatening to send the bailiffs round and repossess her house, hence the reason it was paid. I really need to get this settled as she has been a victim of these barbaric interest rates. Please if anyone can help and advise how we may be able to recover some of the funds it would mean alot.

ViolaLass

What interest rate was charged? Was it the rate your nan agreed to? Did she make all payments on time?

Pixie5740

If the loan was originally with First National and was then sold to Assett Link that sounds like the debt was sold due to arrears building up on the account.

Does your nan have the original loan agreement and/or any statements related to this loan? Did she ever default on the loan?

ashleigh2312

All payments were made on time and the interest pa was 24.1% with the monthly interest on each repayment @ 2%. So each month she was paying £70.65 and then they adding £65.31 interest every month. Then at random times throughout the 13 years along with the monthly interest charges there were charges being added from £10- £2431. These were all at random times with no consistency and no explanation for the charges.

Pixie5740

Is that 24.1% APR, or a flat rate of 24.1%?

If it was 24.1% APR then for a loan of £3654.32 over 10 years the monthly repayments would have been £80.83. If all payments were made in full and on time then the total amount repaid would have been £9,699.09.

How was the £70.65 paid each month? By direct debit or some other method? What correspondence does your nan have from these companies?

ViolaLass

Did your nan definitely make all payment on time?

Clive_Woody

Was this a variable rate of interest or fixed?

iolanthe07

Clive_Woody wrote: »

Was this a variable rate of interest or fixed?

This point is very important. If it was a secured variable rate then the rate may well have been raised over the years. Variable rates almost never vary downwards.