Black horse loan

Jboyd2710

Hi all,
Just after abit of advice of anyone can help.
Back in 2008 I applied for a loan with black horse for a term of 5 years. In 2010 due to losing my job and other circumstances I could no longer afford to pay the loan nor other debts that I had. So I contacted a debt management company and they set arrangements up with the creditors. The balance of the loan when it was set-up was £4800. I've been paying this debt for 5yesrs and I've had a statement through which says the balance is £3950. I was very shocked at this and contacted the DMC and asked what was going on. They had no idea as a total of £3500 has been paid to black horse over the last 5years. After phone calls and letters the DMC contacted me to say that black horse were able to add interest onto the loan. They have sold the debt onto Cabot financial services now. Needless to say I am no longer with the DMC as inferl theyhaven't "managed" my account properly and still taken a fee for this. Does anyone know where is stand with this? It's annoying that having paid so much to the debt there's only been £900 paid off it.
Sorry for the essay
Many thanks

Gaz83

What was the interest rate when the £4,800 was set up? How much have you been paying a month? What kind of fee were the debt management company taking?

Jboyd2710

Hi,
not to sure what the interest rate was As it was a while ago and I was young and stupid. The DMC were charging a fee of £48 a month. They were paying Cabot £74 pm but That wasn't even paying the min payment. The. Interest added is extortionate and can't see an end to this. Cabot have said it's still a live loan and will not freeze the interest but will reduce it. My argument with the DMC is that had they been doing there job they would have noticed that the balance wasn't going down and should have contacted them on my behalf.

Jboyd2710

I think the total amount payable was around £8500.

Clive_Woody

Jboyd2710 wrote: »

Hi,
not to sure what the interest rate was As it was a while ago and I was young and stupid. The DMC were charging a fee of £48 a month. They were paying Cabot £74 pm but That wasn't even paying the min payment. The. Interest added is extortionate and can't see an end to this. Cabot have said it's still a live loan and will not freeze the interest but will reduce it. My argument with the DMC is that had they been doing there job they would have noticed that the balance wasn't going down and should have contacted them on my behalf.

So over 5 years you've paid this DMC over £2800 to do what? All they've done is make reduced payments on your behalf while interest was still being added on and your credit file was being trashed.

What was the name of this DMC?

Jboyd2710

Hi

The DMC is called Gregory Pennington, part of the think money group. I burried my head with the debt and thought as long as i pay them each month the debt would get paid off. When i received thenletter from cabot, i rang the DMC, and asked what was going on. They thought the interest had been frozen, they didnt know that it was a live loan ( they thought it had been defaulted). So i started a complaint with them. After 8 weeks they finally got back to me and said that they have no grounds to uphold my complaint, even though the advisor on the phone was agreeing with me when i said if they had been looking after my account they would have picked up on this sooner. After speaking to a manager they told me that if im not happy with there decision then speak to the financial ombudsman. (Basically fobbing me off). Now i dont know what to do and am so angry at the fact that ive paid so much to the debt and so little has come off. I would advise people to stay well away from GP.

jonesMUFCforever

Go to the ombudsman then!
It's your only chance to get some money back off the debt.

Gregory Pennington upholding your complaint would be like turkeys voting for christmas.

Jboyd2710

I contacted the ombudsman and theyve sent me a complaints form to fill out which ive done. To make it worse ive just found out that they had accepted defaults on other debts owing on my behalf and now im stuck with them on my credit file. I know its my fault as i was in alot of debt at the time and didnt know what to do. To rub salt in the wound cabot keep sending me letters with early repayment figures and because of my credit rating ive no way of getting a loan to pay it off early.Hopefully something will come from the ombudsman looking into it.

CHR15

Jboyd2710 wrote: »

Hi
The DMC is called Gregory Pennington, .

Bottom feeders, absolute vultures.
These DMP companies are worse then the "brokers".

Good luck with the FOS but no crditor os obligated to freeze interest.
Step Change will provide a far better service without charging you a penny.

Jboyd2710

Hi,
Thanks. Im going to try and contact the lenders direct but if i dont have any joy ill contact them.