help parents being scammed

vickih82

in short i have visited my parents today 15 years ago they purchased a conservatory for there home at a cost of £8000 they paid for it monthly as didnt have the full amount at the time i understand that paying for things over time incures apr but today they told me after 15 years of payments they still owe £13000, 5000 over what they were originly charged 15 years ago over the years im sure they have already paid about 26k for this conservatory and are being told they owe 13k still, im sure they are being scammed and dont know where to start has anybody else been in this situation or does anybody know i how i would begin looking into this for them
thanks in advance

LilElvis

Ask your parents to show you their copy of the paperwork so you can see what the agreement was/is.

wealdroam

vickih82 wrote: »

in short i have visited my parents today 15 years ago they purchased a conservatory for there home at a cost of £8000 they paid for it monthly as didnt have the full amount at the time i understand that paying for things over time incures apr but today they told me after 15 years of payments they still owe £13000, 5000 over what they were originly charged 15 years ago over the years im sure they have already paid about 26k for this conservatory and are being told they owe 13k still, im sure they are being scammed and dont know where to start has anybody else been in this situation or does anybody know i how i would begin looking into this for them
thanks in advance

The first thing you need to do is dig out all their paperwork and understand the loan agreement.

If thy are not paying enough each month to cover the interest then of course the debt will continue to grow.

vickih82

will do ill get them to sort it all out, i know they were paying £125 per month 15 years agoi worked out that £44 per month for 15 years would have paid it off by now

DCFC79

Are they being scammed or was the apr stupidly high ?

What does the agreement say regarding the apr ?

Are you in a position wheee you could take out a loan of say 13k or as close and use savings to get to the 13k to then pay the conservatory off ?

OP has had advice in 1 of the many threads they had posted, may as well post your advice in that thread.

wealdroam

vickih82 wrote: »

will do ill get them to sort it all out, i know they were paying £125 per month 15 years agoi worked out that £44 per month for 15 years would have paid it off by now

£44 a month for 15 years = £7900.

That doesn't even cover the amount borrowed, let alone any interest.
No wonder the debt is rising.

This loan repayment calculator may help you.

Silvertabby

It sounds like they borrowed £8K over several years at a high fixed rate of interest. Not a scam, just a very unwise choice at the time.

How old are your parents? If they asked for a resettlement figure would they be able to take out a low interest loan to pay it off ?

ViolaLass

Have they actually paid £125 every month?

Gaz83

Post up details of the amount borrowed, length of term, APR and monthly payments.

Caz3121

what was the term and APR for the loan...if this was a 25 year loan at 19% then the figures appear correct...there would be over £30k interest on top of the original borrowed amount

rtho782

Caz3121 wrote: »

what was the term and APR for the loan...if this was a 25 year loan at 19% then the figures appear correct...there would be over £30k interest on top of the original borrowed amount

I bet this is what happened.

No scams involved.