1st Credit added £2500 to my dad's loan

Jagtar

Ok guys,

I need some help basically in 2004 my dad took out an £18k loan but had to stop payments after he lost his job. He ended up in caught and the debt got transferred to 1st credit. My dad has been paying back the loan for a long time now and has cleared most of it. Last year there was £2700 left on it and we expected to pay off the loan in about 2 years. We were paying back £1248 annually. Anyhow out of the blue we receive a letter from 1st credit saying they had missed some interest on the loan and they subsequently added £2500 in interest taking the total debt to roughly £5200.

We called them up and they said this was extra interest they had not added initially and they would be no further interest to add. Anyway you can imagine my dad was really bummed and angry when he thought he only had 2 years of loan payments left to find out they had added more money.

I have a small suspicion that they may be defrauding my dad and trying to get more money out of him. I'm not sure how to find out if thats the case.

Has anyone had this problem where loan interest is added out of the blue??? Could anyone tell me what to do??? How can I find out if this interest is being added fraudulently???

Sorry for the long post and thanks for replying.

DCFC79

Send SAR to first credit and see what the interest rate was, you could maybe try the FOS.

Placitasgirl

Just thought I'd explain those acronyms in case the OP isn't familiar with them.

A "SAR" is a Subject Access Request, and the "FOS is the Financial Ombudsman Service.

[Deleted User]

Jagtar wrote: »

I have a small suspicion that they may be defrauding my dad and trying to get more money out of him. I'm not sure how to find out if thats the case.

I think you can safely assume that's not the case.

poppasmurf_bewdley

Just an enquiry. It may be nothing.

We have had examples on this forum of loan companies paying back interest charged because they haven't sent annual statements as required by law.

Now we have this instance where interest seems to have been added without previous notification.

Has the OP been receiving annual statements from the loan company?

As I said, it may be nothing, but it could help him.