Help with a loan taken out in 1995

Jenki82

I hope someone can help.

My mum took out a loan in 1995 with b n q for a new kitchen, and somehow she is still paying for it now !!
The original loan was for £3447.50 and the balance as of yesterday is £2580.42 !!! There was a period of 2 years which the loan wasn't paid and the debt rose to over 28 thousand, she is now currently paying £140.00 a month.
She didn't realise at the time but it was a loan secured on her mortgage and was to run for alongside. It has changed company 3 times and the company it is with now has sent over a detailed report showing payments ect.
My question is she is sure that she was paying PPI and has also been charged all sorts of fees , so my question is do I claim with the company it is with now ? And can she claim back the extra charges that have been added to her account ?? Thanks in advance

foxy-stoat

Think you need to look at the original agreement to know what she signed up to.

Try a PPI claim by all means on the original company and the others that it was transferred to, she may get a load back.

Good luck

Jenki82

She doesn't have the original agreement, is there anyway I can find out who it was originally taken out with?

Exodi

So to address the two separate issues;

As I understand it (please fellow forum members correct me if I'm wrong!) from January 2005 companies started having their insurance regulated. Insurance before this date wasn't regulated and would not be considered for complaint. You can still try but from the sounds of it, you don't have any documents regarding this? I'd drop it personally.

Without further detail, I'm not sure why you think you have grounds for the charges being dropped. Even on Mickey Mouse interest rates, you'd expect the balance to have been settled by now, so I sense an inevitable default and period of nonpayment (hence the fees?).

To be honest, I would just call up whomever currently holds the debt and ask for a F&F settlement figure and make amends to pay this. Unless there's crucial information you have not said, I see no real cause for complaint in the post above, if this debt really has been rolling (and chased) for 23 years, the fees are entirely reasonable (fees aren't automatically unfair!).

Sorry, probably not the news you wanted to hear but hopefully their F&F figure is generous.

Jenki82

It was defiantly Mickey mouse interest rates !!!! The interest been applied was more than the payment so the debt has just gone up right from the first month!!!

The loan was defaulted when the loan was taken over by another company and the direct debit wasn't continued, during this time the debt raised to over 28 thousand !!!

I know she probearly claim anything but I was just so shocked last week when she said she was still paying this from all that time ago, her mortgage is paid off and this is still going !

Exodi

Jenki82 wrote: »

It was defiantly Mickey mouse interest rates !!!! The interest been applied was more than the payment so the debt has just gone up right from the first month!!!

The loan was defaulted when the loan was taken over by another company and the direct debit wasn't continued, during this time the debt raised to over 28 thousand !!!

I know she probearly claim anything but I was just so shocked last week when she said she was still paying this from all that time ago, her mortgage is paid off and this is still going !

This is tremendously unfortunate but, being cruel to be kind, your mother should have dealt with this a long time ago and this will be a VERY expensive lesson learnt. If my Mortgage didn't come out my bank one month, I wouldn't just assume the bank has kindly decided to pay for the house for me, it's no different and definitely not a defense.

For the debt to grow from several thousand to £28,000 tells me that this period of non payment was very long? You really should put these details in your original post, it's not fair we have to interrogate them out of you for a fairer picture.

I do feel for her, I really do, sadly everyone learns eventually (and I'm also guilty of this mistake in the past) debt CANNOT be ignored and does not go away, as much as we think it does.

[Deleted User]

Exodi wrote: »

For the debt to grow from several thousand to £28,000 tells me that this period of non payment was very long?

The story has played out across several threads and different boards. It looks as if the Mother only started paying back the loan in 2007 and has been paying it back ever since at £140 a month..

She now still owes £2,580.42

Clive_Woody

If there was a period of 6 years with no acknowledgement of the loan would it not be statute barred?

Apologies as I have not read all of the threads so may have missed relevant information

Jenki82

It's only been 2 threads I posted on the PPI board and was told to post it here!!

[Deleted User]

Clive_Woody wrote: »

If there was a period of 6 years with no acknowledgement of the loan would it not be statute barred?

Apparently the loan was not paid for two years during which the debt climbed to more than £28,000. Obviously the debt has been acknowledged by the Mother paying it off for at least the last eleven years. Even though there is another thread, the OP is drip-feeding information..
The other thread is on the PPI board, but it doesn't look like there was any PPI:
https://forums.moneysavingexpert.com/discussion/5921406

Jenki82 wrote: »

It's only been 2 threads I posted on the PPI board and was told to post it here!!

I recommended that because you don't appear to have a PPI complaint..

Jenki82

Sorry for the lack of details. It was only 2years it wasn't paid for.