Reasonable fees/interest on a black horse loan

mjg1975

Hi everyone new poster on here but followed for years.
I'm after a bit of advice on a unsecured loan of £15000 we took out in 2008 with the B/Horse. Basically we got into a mess after separating 2 yrs into the loan, the monthly installments were £363 we took some payment holidays then made reduced payments so the interest was still adding up. If we had of kept to the original loan schedule we would have paid it off (21,804) by now.

We're back together and have managed with some help to make the full payments since april 2013. About 6 months ago I was told the loan should be cleared in Dec and any remaining charges knocked off so call back in December to discuss this. After phoning b/h last week I was told there was still a balance of over £700 outstanding and they would pass it onto management to write this off as a goodwill gesture.

I left it a few days but was surprised to hear that the debt had been passed to hillsden for collection the day after they were supposed to look at writing it off.

Sorry it's a bit long winded, I asked out of interest what was the total amount paid back to date and was a bit shocked to hear it was £23,788 nearly 2.5k more than the original debt if they don't write off the rest. A friend thought he'd seen somewhere that they can only charge a reasonable amount in arrears charges and interest so any advice would be most appreciated

Gaz83

They can charge however much they want to, as long as it's in line with the terms and conditions you agreed to when you took out the loan.

PeacefulWaters

A complain about interest charges and not a single mention about the actual rate being charged?

mjg1975

sorry my first post, interest rate was 16.9% and arrears charge fees are £25-£30 according to the fixed sum loan agreement.

Gaz83

mjg1975 wrote: »

sorry my first post, interest rate was 16.9% and arrears charge fees are £25-£30 according to the fixed sum loan agreement.

Were these the APR and fees you agreed to when you took out the loan?

mjg1975

Yeah they are, didn't have a fantastic credit score prior to applying for the loan.

Gaz83

Then I would say you don't have a leg to stand on.

mjg1975

Things might be moving in the right direction and perseverance might pay off. After no contact for a few days I rang back today asking for the black horse complaints dept. An hour later I had a call back apologising for the fact the debt was sold on prior to paying off, they have instructed hillsden to return the account and will then audit to see exactly what had been paid. I've been instructed not to make any further payments with a view to the debt being settled and possibly having overpaid with a possible refund to follow......Christmas might be starting early in this house ☺☺

thebritishbloke

I wouldn't get your hopes up too much. Don't bank on getting a payday, they might audit it and they see "Oh, we're still eligible for them to pay us £700. Lets tell them they need to pay that over the next 2 months".