Secured loan for £32,000. Paying back £90,000? HELP

moneyadviceneeded

Thank you all, its looking bleek :-(

Yes, this is a firstplus loan... how did you guess?

It seems Barclays sent the loan out to firstplus but apparently do not do business with them anymore?

Thank you all again, the info provided has helped me personally understand this better. We are still waiting for the settlement figure.

cavework

Barclays are and were First Plus.. First Plus have stopped lending and Barclays now deal with all existing customers.
Try a reclaim of PPI as it did not cover the full length of the loan.
This may be considered as mis-selling.The PPI was front loaded and you are still paying for it long after it expired
We had a full refund of PPI
Quote
He explained that out of the £18750 owed, £16500 of this is interest?


That is not correct I am sure

moneyadviceneeded

We have had the statements through and it shows we owe £2800. It also states this is not a settlement figure.it says this

opening balance at 24/10/2014
Loan balance £2825.19
Default sum balance £ 0
Total Outstanding £2825.19

It then says under this

closing balance 08/11/2014

Loan balance £2477.21
Default sum balance £ 0
Total Outstanding £2477.21

The statements dates and amount paid off are

24/10/2005 to 24/10/2006
£38377.60

24/10/2006 to 24/10/2007
£39665.72

24/10/2007 to 24/10/2008
£37318.54

24/10/2008 to 24/10/2009
£31453.04

24/10/2009 to 24/10/2010
£27635.16

24/10/2010 to 24/10/2011
£24661.16

24/10/2011 to 24/10/2012
£19071.16

24/10/2012 to 24/10/2013
£11176.71

24/10/2013 to 24/10/2014
£7000.95

24/10/2014 to 08/11/2014
£2825.19

I know it must be more than £2825.19 left to pay surely?

Does this make sense to anyone?

Thank you again

cavework

moneyadviceneeded wrote: »

We have had the statements through and it shows we owe £2800. It also states this is not a settlement figure.it says this

opening balance at 24/10/2014
Loan balance £2825.19
Default sum balance £ 0
Total Outstanding £2825.19

It then says under this

closing balance 08/11/2014

Loan balance £2477.21
Default sum balance £ 0
Total Outstanding £2477.21

The statements dates and amount paid off are

24/10/2005 to 24/10/2006
£38377.60

24/10/2006 to 24/10/2007
£39665.72

24/10/2007 to 24/10/2008
£37318.54

24/10/2008 to 24/10/2009
£31453.04

24/10/2009 to 24/10/2010
£27635.16

24/10/2010 to 24/10/2011
£24661.16

24/10/2011 to 24/10/2012
£19071.16

24/10/2012 to 24/10/2013
£11176.71

24/10/2013 to 24/10/2014
£7000.95

24/10/2014 to 08/11/2014
£2825.19

I know it must be more than £2825.19 left to pay surely?

Does this make sense to anyone?

Thank you again

You owe £2477.21 plus probably one months interest if you pay the loan off early.
The interest is front loaded and as you make payments over time the cost of interest decreases and the money paid comes off the balance owed.
I hope I am right
Hope this helps
x

moneyadviceneeded

Are you sure?

I cannot see how we owe £2700 yet have another 11 years to pay it off?

cavework

Loan balance £2477.21
Default sum balance £ 0
Total Outstanding £2477.21..


this is the figure I get from your posts . Why do you have another 11 years left to pay?
or am I being stupid here? (probably)
Is there another loan?
From what I can work out it was a 10 year loan which was the norm for First plus

Caz3121

moneyadviceneeded wrote: »

In 2005 she signed up to a £32000 secured loan with Barclays.

The loan is over 300 monthly payments

moneyadviceneeded wrote: »

yet have another 11 years to pay it off?

I think you need to check the dates
you said it was taken in 2005 for 3000 months, would this not mean after 9 years you would be expecting it to run for another 15+ years, Where does 11 come from....are you sure it was 300 months?

Gaz83

Caz3121 wrote: »

I think you need to check the dates
you said it was taken in 2005 for 3000 months, would this not mean after 9 years you would be expecting it to run for another 15+ years, Where does 11 come from....are you sure it was 300 months?

Just what I was thinking. Something's not adding up here - you said she signed up for a 25-year loan in 2005, it's now 9 years later - why would you expect it to finish after only 20 years? Are you sure it was a 300-month loan she took?

moneyadviceneeded

Hi Guys,

The paperwork definitely states 300 payments which is 25 years.

This is what I do not understand. Something is not adding up

937carrera

I agree that something is not adding up. I tried to do a quick simulation of the annual payments and they made no sense whatsover, for example:

2011-12
Monthly repayment £288
Annual repayment £3,456
Opening Balance £24,661
Closing Balance £19,071

.... so the interest charge is minus £2,134 ??

The next year is even more extreme with a capital reduction of £8k and only £3.5k paid.

Are you sure the loan has been repaid at the stated £347 / £288 per month, it looks like the repayments have been at a higher rate.