front loaded interest

saleschick

Hi I had a 10000 loan with hfc in 2006 which I defaulted on..they took me to court and put a charge on my property but put front loaded interest on the loan..so I have now paid off the 10k but the solicitor dealing with it tells me I still have another 9k to pay is there anything that can be done does anyone know
X

Pixie5740

What makes you think the interest was front loaded? Unless the loan had an APR of 0% then you would expect to repay more than £10k for a £10k loan. What was the APR of the loan? What fees and charges were applied to the loan when you defaulted and were taken to court?

HappyMJ

saleschick wrote: »

Hi I had a 10000 loan with hfc in 2006 which I defaulted on..they took me to court and put a charge on my property but put front loaded interest on the loan..so I have now paid off the 10k but the solicitor dealing with it tells me I still have another 9k to pay is there anything that can be done does anyone know
X

You would have also had court costs and enforcement costs to consider.

Taking a claim to court today would cost 4.5% of the claim just to bring a claim. That'll be about £450.

Then you've got the cost of the charging order which would today cost £110 plus the cost of search fees and the registration of the order.

Brock_and_Roll

The OP has been posting the same question on a regular basis since 2011 - the advice was to pay the £1 and get a copy of the original agreement. To date, the OP has not reverted with the details of the loan from this so hard to give any further advice. However, there does seem to be a general misunderstanding about how interest on loans actually works - nothing unusual about that in here!

saleschick

I have a copy of the agreement when they took me to court they froze the interest but my loan went from 10k to me having to pay 21k ?

[Deleted User]

the loan is 9 years old.lets assume the apr was 10%,it was probably more,the interest in the first year would be £1000,in the second £900,you get the idea?the interest would start to really rack up when you defaulted,so no surprise that you still owe £9000 or more

chanz4

don't forget the statutory court intrest 8%

saleschick

The Apr was 28.8% they said they froze the interest when they took me to court in 2007...however I'm paying 11000 interest surely that's not normal

saleschick

Plus they won't send me an original copy and neither will the solicitor who is taking the payments each month

[Deleted User]

saleschick wrote: »

The Apr was 28.8% they said they froze the interest when they took me to court in 2007...however I'm paying 11000 interest surely that's not normal

It is if you go round taking loans at 28.8%.

ViolaLass

saleschick wrote: »

I have a copy of the agreement when they took me to court they froze the interest but my loan went from 10k to me having to pay 21k ?

You were always going to have to repay more than £10k.