Problem with Beneficial/HFC - is it legal?

shell37_2 · 18 October 2007 at 10:14PM

Hi this is my first ever post and I need some help/advice.

Around 1999 my OH and myself arranged a consolidation loan with local HFC for £10,000 over 72 payments with PPI. On reading docs the next day I realised they'd worngly sold me PPI as I had to work 16hrs to be eligible and I only worked 14 so I cancelled it immediately got rude manager calling me back refusing responsibility and eventually got letter of apology from area boss. That's just the beginning.
1 - My OH had to change jobs about 6 months later and took a massive paycut so we had to use a Debt Managment company to arrange reduced payments which HFC took quite happily. What they didn't tell us was they were rescheduling the loan term to take this in. I had by then given the copy of the agreement to the debt managers who filed and misplaced it! So no record of original apr etc. I asked for copies of loan documents but nothing ever appeared.
2 - in 2002 my OH was retired from work due to injury. No problem said HFC claim on the PPI he had on the loan. We claimed and were succesful. "Don't worry they'll pay the entire term of the loan or write it off if he's retired" said local HFC office so we duly sat back and forgot about paying the debt until last month.

"Beneficial here, are you aware you are in arrears?" Apparently the insurance only lasts 5 years and they weren't paying any more

and we still owe over £3,300! The loan term has been extended until 2009! Once again we are reduced to paying smaller repayments - which we can't really afford and have no paperwork to show anything about interest rates, loan term etc and although we have asked for this and the insurance documentation, nothing has been forwarded. Is this legal? Can they just lengthen the term and add interest and charges without giving us warning or new papers?

I've waffled, sorry but I'm confused, panicing and angry and don't know where to turn next. Any contacts or advice would be really appreciated.

Thanks x

Debt_Free_Chick · 19 October 2007 at 7:27AM

You need a copy of the credit agreement under which they claim the debt is owed.

Use the exact words in this letter and note you need to enclose payment of £1 with it.

They have to prove what you owe, in accordance with the credit agreement.

Do this first and then let's see how they reply.

shell37_2 · 19 October 2007 at 8:29PM

Thanks! There has been a very interesting development tonight............

We called the loan insurance part of the company (Hamilton ins) and requested a letter AGAIN confirming the terms of the insurance, stressing how much of a mess this left us in. Got very sympathetic lady who promised to get details in the mail. Then we called Beneficial asked them to accept very reduced payment until we get our financial statement prepared and could they provide details of why loan had been rewritten. They advised us to contact our nearest local office who would look into it for us as they have more access to files etc. (We didn't know our local office existed!)
An hour later the phone rings, Hamilton insurance.....the lady had looked into our records and discovered they had underpaid the claim by £60 every month for last 5years!!! £3905 was reduced to £218 in 1 call! Apparently they will confirm this is in writing and (fingers crossed) that's the end of that! I can't believe it! Nothing this good ever happens to me!!

I have to thank everyone on this site for giving me the courage to face up to the company and challenge them. This is a huge huge deal, my kids will get a good xmas after all!