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Equity Loan & Conumer Credit Act
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neil.net
Posts: 175 Forumite
Hello
Just over five years ago I bought a home on mainly a standard mortgage together with an equity loan (from a not-for-profit housing body) to add to my deposit to make it more substantial. The agreement was that payments would begin approximately five years after the equity loan was granted.
About 18 months prior to the anniversary of the loan I received a letter reminding me of the loan anniversary, interest, approx amount etc. and that I would be contacted at the anniversary date to inform of the process, direct debit, amount, interest etc. Since then nothing until today (letter dated three weeks ago) when I receive a stern letter telling me I have arrears of a particular amount and that I am in breach of the Consumer Credit Act. Apparently they have sent several previous notices, it's pretty generic and other than the amount of arrears there is no information about how the amount has been arrived at - I can approximate the figure but but it doesn't add up.
I don't mind paying it, I expected to, but I thought the Consumer Credit Act made certain requirements of a lender to communicate amounts etc to borrowers? It seems I'm expected to tow the line but they don't have to, I can't even confirm the amount is proper!
Just over five years ago I bought a home on mainly a standard mortgage together with an equity loan (from a not-for-profit housing body) to add to my deposit to make it more substantial. The agreement was that payments would begin approximately five years after the equity loan was granted.
About 18 months prior to the anniversary of the loan I received a letter reminding me of the loan anniversary, interest, approx amount etc. and that I would be contacted at the anniversary date to inform of the process, direct debit, amount, interest etc. Since then nothing until today (letter dated three weeks ago) when I receive a stern letter telling me I have arrears of a particular amount and that I am in breach of the Consumer Credit Act. Apparently they have sent several previous notices, it's pretty generic and other than the amount of arrears there is no information about how the amount has been arrived at - I can approximate the figure but but it doesn't add up.
I don't mind paying it, I expected to, but I thought the Consumer Credit Act made certain requirements of a lender to communicate amounts etc to borrowers? It seems I'm expected to tow the line but they don't have to, I can't even confirm the amount is proper!
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Comments
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Where's your post going? One piece of mail maybe. Multiple pieces doesn't sound right. The lender will have a record of everything they've sent.0
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Hi, thanks for the reply
I haven't had chance to speak to them yet (office hours) but by my reckoning, and assuming they have actually sent them, I'm missing at least four pieces of mail and today's arrived 3 weeks after its date and barely anything else in the last five years!0 -
How big is the equity Loan?
If it's above £25k, it falls outside CCA jurisdiction.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Hi, thanks for the reply
It is above £25k and I was a little curious if the CCA had the same application here, but "they" have quoted it in their correspondence.kingstreet wrote: »How big is the equity Loan?
If it's above £25k, it falls outside CCA jurisdiction.0
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