Bad loan company need help 😔

Beccapuglove

Hi I'm new to this to help my best friend basically... In 2006 ish she got a 8000 loan out from a loan company after paying instalments and in 2010 paying a 5000 bulk pay from some inheritance she got she is still being a hassled when I go to her house they constantly call each day she is currently paying 50 pounds a month she has worked out roughly she has probably payed around 1400 since starting the loan, they will not give her the exact amount she has already paid or how much she has left to pay she is in a mess and I want to help my friend get advise and sort this loan company problem out! It's like they want money from Her for the rest of her life!

Thanks xxx

[Deleted User]

Ask them for a settlement figure - they are obliged to provide you with one. Then she can figure out her options.

But an 8k loan over the best part of a decade with a high interest rate is going to add up to a very large repayable amount. Even more so if she's missed payments or defaulted.

What was the original term?

dcouponzzzz

Very roughly: without knowing the interest rate, if she now owes £1600 (8k-5k-1.4k) and it's £50 per month @ 20% APR (terrible interest, but could be much worse), there would still be 46 months left of payments.

Check if they're regulated by FCA (will be stipulated on the signed contract or you may be able to contact the FCA to check). If they are regulated they will need to provide settlement upon request, and if they refuse then contact the FCA directly.

Beccapuglove

I'm going to her later going to make her call and get a settlement sum and work from there and contact that place you said thanks! im going to make her tackle this head on and get it under control cos at the minute she burying her head in the sand 😔 xxx

Beccapuglove

We just rang and told them we would just go to FCA directly they passed us through a lot but got a settlement @ 1300!!! Xxx

Tiddlywinks

Beccapuglove wrote: »

We just rang and told them we would just go to FCA directly they passed us through a lot but got a settlement @ 1300!!! Xxx

But that settlement figure is only a 'snapshot' of the amount that is due now - if it's not repaid now, the interest will keep adding to the debt.

How is your friend intending to repay the amount?

What were the original terms of the loan? The amount, period, repayments etc?

dcouponzzzz

Congrats, that's a good first step! If you can come up with that money somehow then you can wave it goodbye If not then depending on credit score maybe she can get a 0% interest 0% balance transfer credit card like the Santander 123? I have limited knowledge on cards though so someone else will need to verify if this is a good alternative.

[Deleted User]

Ok - so that's the first step.

Does she have the funds to settle it? If not, then she needs to find out how much of the term is remaining. £50 a month is not going to make a dent in it very quickly, as interest keeps being added on.

Tiddlywinks

Beccapuglove wrote: »

Hi I'm new to this to help my best friend basically... In 2006 ish she got a 8000 loan out from a loan company after paying instalments and in 2010 paying a 5000 bulk pay from some inheritance she got she is still being a hassled when I go to her house they constantly call each day she is currently paying 50 pounds a month she has worked out roughly she has probably payed around 1400 since starting the loan, they will not give her the exact amount she has already paid or how much she has left to pay she is in a mess and I want to help my friend get advise and sort this loan company problem out! It's like they want money from Her for the rest of her life!

Thanks xxx

If they are calling her constantly, she has probably defaulted - has she agreed a new repayment plan?

This default is likely to mean she won't get cheaper borrowing from any other business source so it's imperative that she knows exactly how she will tackle this debt.

Does she have other loans etc? Why is she struggling with repayments?

dcouponzzzz

Tiddlywinks wrote: »

But that settlement figure is only a 'snapshot' of the amount that is due now - if it's not repaid now, the interest will keep adding to the debt.

How is your friend intending to repay the amount?

What were the original terms of the loan? The amount, period, repayments etc?

To add to Tiddly's post if we're to assume an average 20% interest (depending what it is it can be as high as 50%), it'd be 49 monthly payments of £50, or a total of 2400-2500

Beccapuglove

Thanks for all your replys , Iv explained to her about 1300 won't stay that amount if not paid off now! We have also phoned her bank to go in and see if anything can be done with transferring the debt to a low rate credit card! she is nervous telling her bank manger her problems but I'm pushing her to go and ask if anything she can do to help! And yes she has defaulted a few times hence is spiralled out of control 😔

The company still very rude on the phone to her was on loud speaker took going through to 4 people to get settlement sum! They would not give no more information after that as we asked for a break down of the charges said she is paperless so can't send out! Load of rubbish xxx