First Plus - unaware of deferred interest

penninewanderer

Hi, I wonder whether anyone could offer any advice on a problem we are having with Elderbridge chasing us for deferred interest allegedly charged First Plus?

We recently received a letter form Elderbridge advising that they had taken over from First Plus and that there was an outstanding balance of approx. £7K on our account. On settling this we rang Elderbridge to confirm that the account was clear only to be told that there was a further amount of £17K outstanding as the result of deferred interest.

This amount has never been shown in any correspondence or statements we have received. Elderbridge tell us that they or First Plus weren't required to tell us about the amount as the account wasn't covered by the Consumer Credit Act.

They are therefore charging us for a figure that can only be considered arbitrary as they are unable to provide any statement or calculations to justify it.

Are they allowed to pursue for this amount?

Many thanks for your help

sourcrates

Hi Pennine wanderer,

Can you just clarify who these companies are, and what type of debt we are talking about here ?

As nearly all loans, taken after 6th April 2008, and sold in the UK, are governed by the consumer credit act 1974.

Edit :

After a quick google it appears First plus were a part of Barclays PLC which ceased trading a while ago, Elderbridge, a debt purchasing company, been the main destination for all there old accounts.

The internet is awash with complaints about these two companies it seems.

penninewanderer

Hi Sourcrates,

the original loan was a secured loan (against our house). I believe that as it was for more than £25,000 and taken out before 2008 it isn't covered by the CCA

sourcrates

So my understanding of this, is that the account has been sold on, and Elderbridge are still charging variable interest on the debt, is that correct ?

Unregulated agreements appear to be a minefield, is your debt still secured against your home ?

Legal beagles are awash with complaints about this company as well at the moment.

penninewanderer

The debt was sold on to Elderbridge (by First Plus) and we were advised of the £7K o/s balance. When we paid this Elderbridge then advised a further £17K o/s from interest which was allegedly suspended back in 2008. We have no documentary evidence for this amount nor have Elderbridge been able to provide any (they simply claim as its not covered under CCA they didn't have to provide any).

The good news is that they have confirmed no interest is chargeable against the £17k

sourcrates

penninewanderer wrote: »

The good news is that they have confirmed no interest is chargeable against the £17k

Charging interest on the interest, i would not put that past them !!

Are you in a position to pay this money ?

If you are, then i would possibly try making a full and final offer to make it go away.

But before you do anything else, check out Legal Beagles website :

http://legalbeagles.info/

There may be a way to challenge the validity of this interest payment, thats what others are asking at the moment.

Rainbowsky

There is also a very good First Plus facebook group with people who have the same sort of problems.