Consolidation Loan overpayment?

Mulder40

My partner took a consolidation loan out over 10 years ago to last 10 years paying £130 per month. It was to pay off a 12k debt. 3 months ago he wanted a payment holiday for 1 month and he was told to cancel the direct debit. Unfortunately due some other money issues he hasn't paid it for a couple of months. He's rung up to sort it all out again and they've said because he cancelled his direct debit he has to apply for a new loan!!! It's come to light that he's so far paid back over 19k and still owes just under 4k. He wasn't advised when he was told to cancel the direct debit he would need to re apply. This is the 3rd company that owns this loan from when he eventually took it out and considering it was meant to have cleared after 10 years why are we still paying? He has been with Lloyd's bank for 10 years and has a £400 overdraft for the duration of paying this loan. The consolidation loan company are now saying that they can't give him a loan unless he moves to a bank he doesn't owe money to!!!!!
Really don't know where to go with all this now and all the while the interest is mounting up.
We have actioned a complaint but this can take up to 8 weeks!!!!
Any advice greatly appreciated.
Thanks

[Deleted User]

He can't borrow his way of out debt. It's not worked for him so far and it's not going to work in the future.

The debt has gone beyond the term because he has been missing payments.

Post an SOA on the DFW board and let the folks there help you.

Pixie5740

Mulder40 wrote: »

My partner took a consolidation loan out over 10 years ago to last 10 years paying £130 per month. It was to pay off a 12k debt. 3 months ago he wanted a payment holiday for 1 month and he was told to cancel the direct debit. Unfortunately due some other money issues he hasn't paid it for a couple of months. He's rung up to sort it all out again and they've said because he cancelled his direct debit he has to apply for a new loan!!! It's come to light that he's so far paid back over 19k and still owes just under 4k. He wasn't advised when he was told to cancel the direct debit he would need to re apply. This is the 3rd company that owns this loan from when he eventually took it out and considering it was meant to have cleared after 10 years why are we still paying? He has been with Lloyd's bank for 10 years and has a £400 overdraft for the duration of paying this loan. The consolidation loan company are now saying that they can't give him a loan unless he moves to a bank he doesn't owe money to!!!!!
Really don't know where to go with all this now and all the while the interest is mounting up.
We have actioned a complaint but this can take up to 8 weeks!!!!
Any advice greatly appreciated.
Thanks

Consolidation Loan Company? Who is that? Are they are lender or (please God no) are they a debt management company? I suspect it's the latter if they are advising him to open a new bank account away from his creditors?