My personal loan has been ‘sold’ and my new creditor doesn’t appear to want any inter

kissinger

So I took out a loan a while ago for around £8000 with a payment holiday of several years and when repayments kicked in I owed about £11,000. Before the repayments even kicked in the loan had been sold once. I wasn’t thrilled about it but nothing significant seemed to change (including the rate of interest) so when repayments became due I started paying them in full.

Well, this month I received notice that the loan had been sold on once again to a new company (I wish they would have offered me the chance to buy it before they did that, but oh well) and on the statement the new company sent it clearly states ‘No further interest will be applied to your account’ and, on another part of the letter they sent, ‘Your standard monthly interest rate is 0.000%’ and ‘Your next statement will show an interest charge of £0.00.’

Now, is this likely to just be a typo (or a series of typos) or have I really got lucky and avoided paying interest on this loan?

With my luck, it is almost certainly the former, but it does seem strange to me that they would make the same ‘error’ several times on several different documents and I wondered whether there might be some legal reason why they might not be able to charge interest once a loan has been sold more than once. Wishful thinking, but I just wanted to ask some people in the know before I call the company concerned.

glentoran99

Who were the companies involved? I currently have one that has 0% interest

sourcrates

Hi,

Explain how a "payment holiday of several years" works please ?

Never heard of this before, do you mean you defaulted on a loan, and it was sold on to a DCA ?

kissinger

sourcrates wrote: »

Hi,

Explain how a "payment holiday of several years" works please ?

Never heard of this before, do you mean you defaulted on a loan, and it was sold on to a DCA ?

It wasn't a standard personal loan, it was a sort of 'career development' loan designed to let you fund education/training and start repaying afterwards, once you were in work. That's why there was an unusually long repayment holiday on it. No repayments have been missed or were late.

sourcrates

kissinger wrote: »

It wasn't a standard personal loan, it was a sort of 'career development' loan designed to let you fund education/training and start repaying afterwards, once you were in work. That's why there was an unusually long repayment holiday on it. No repayments have been missed or were late.

Ah, ok,

Well when a debt gets sold on, the new owner can't charge you interest on that debt, unless the original agreement allowed them to do so, what does your agreement say ? Do you still have it ?

kissinger

So I've just looked again at all of the documentation I was sent and I made a mistake: the loan hasn't been 'sold on' again, there's just been a 'change of agency'. So a new company is collecting the debt on behalf of the company that bought the loan off the original loan provider.

And yet it does still say that there is no interest payable now. I can't believe that's correct, but it does clearly state that on the documentation.