Clearing a loan

Edith76

Good evening,

I've had a loan with a company since 2009. I have been making the monthly payments and have not missed any. Every 6 months I have a review. In my last review in May, 2 months ago, I was offered a 15% discount on the whole value of the loan and I was in the position to increase my monthly payments to £150. This was agreed. I was told a letter would be sent out to confirm the new agreement. 2 days later I called to confirm it was on the system and it was. When I received the letter 2 days later, the jest of it was "with your final payment of £150 received on the 30th June, we will clear the balance of your loan and your debt will be cleared." I made my May and June payments. I am about to make my July payment but can I hold them to this letter they have sent me and confirm that my balance is indeed cleared?

Thanks for your advice

forgotmyname

Edith76 wrote: »

Good evening,

I've had a loan with a company since 2009. I have been making the monthly payments and have not missed any. Every 6 months I have a review. In my last review in May, 2 months ago, I was offered a 15% discount on the whole value of the loan and I was in the position to increase my monthly payments to £150. This was agreed. I was told a letter would be sent out to confirm the new agreement. 2 days later I called to confirm it was on the system and it was. When I received the letter 2 days later, the jest of it was "with your final payment of £150 received on the 30th June, we will clear the balance of your loan and your debt will be cleared." I made my May and June payments. I am about to make my July payment but can I hold them to this letter they have sent me and confirm that my balance is indeed cleared?

Thanks for your advice

Why have you had a review every 6 months if you have not missed a payment? Sounds odd.

Sagz_2

No you can't hold them to the letter...... but you might get lucky and they 'may' not realise their mistake.

In your position I'd make the July payment, if they don't think you owe it they will send it back!

Or simply call them and ask them to confirm the situation.

I'd still put the owed money aside though in case the mistake is spotted later.

ViolaLass

Why would they offer you a discount when you had met all the payments?

jonesMUFCforever

What kind of loan is it?
Sounds like a Provident type loan whereas the loan seems to be rolled over and over?

Edith76

They ask if I'm in the position to make a reduced settlement payment or if I can increase the monthly amount.

Edith76

Oh ok. I've kept the money aside and will speak with them. I may be lucky lol

Edith76

They said because I'd been so faithful over the years, they wanted to help me out.

Edith76

I stupidly signed an agreement for car finance for a supposed friend. He was making the payments initially but kept stalling to have it all changed over to his name, then he eventually stopped sending payment to me. Debt was turned over to Cabot Financial and I've been dealing with them eversince.

Caz3121

Edith76 wrote: »

I've had a loan with a company since 2009. I have been making the monthly payments and have not missed any.

Edith76 wrote: »

I stupidly signed an agreement for car finance for a supposed friend. He was making the payments initially but kept stalling to have it all changed over to his name, then he eventually stopped sending payment to me. Debt was turned over to Cabot Financial and I've been dealing with them eversince.

not quite the same as initial post...
why was the debt passed to Cabot if there were no missed payments?
loans cannot be "changed over to his name" your 'friend' would have needed to take a loan in their own name and give you the money to then pay your loan off
Hopefully your attempt at helping a friend has not damaged your history too much

Edith76

With Cabot there have been no missed payments.

Yes I did realise after about the name change etc. As I've said I stupidly....

It along with other things marred my credit history because of some difficult circumstances I went through.

All other debts have been settled/cleared, its just this one left as it was the largest.