Advice/help needed on high interest secured loan

I would like to know if there is anything I can do about a high interest loan I took out 12 years ago. I received a call regarding a loan from then Bright House, the loan was with Welcome Finance but has since been taken over by Prime Credit. I believed at the time the loan was over 5 years. It transpires that the loan is 15 years. I would have paid about 21,000 in interest during this time. At the time I wanted to consolidate some small debts that totalled a large monthly payment. I borrowed 5,000. I can't find paperwork. I know I should have read it thoroughly but I recall them sending a bundle of paperwork with a page marked to sign. It wasn't until I thought It was coming to the end of the 5 years and called to see when it would finish that I became aware it was 15 years. I never would have knowingly agreed to this. The current balance is £3831 after 12 years of paying £151 a month. I know I've been stupid but the more the time goes on the more angry I get about the interest. Does anyone have any advice on if there is anything I can do about this? Thank you.

Comments

  • The best thing to do is to overpay. The quicker the balance goes down, the less interest you'll pay.

    Always read the details of any future loans you enter into to ensure they're right for you.
  • If it is secured against your property can you not remortgage?
  • You could do with getting a copy of the contract so you can see what it is that you've signed. You should be able to ask the company who now own your loan for a copy of this (it might cost you a few pounds though). All of the full cost for the loan (and the APR) will be on the contract.
  • D_M_E
    D_M_E Posts: 3,008
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    Also check your paperwork for PPI - the loan may well have included it without your knowledge.

    If that's the case - or not - could be worth while putting in a claim for missold PPI.

    https://www.moneysavingexpert.com/reclaim/ppi-loan-insurance/
  • System
    System Posts: 178,077
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    edited 25 November 2018 at 12:50PM
    £5000 over 15 years repayable at £151 a month would be an APR of 42.9% would be so given who you borrowed the money from it is absolutely believable that that would be the APR and it would be a 15 year term. Oakham, the lender who advertise on the telly, do £5000 loans and they have an APR of 98.8%.

    https://www.oakam.com/en/why-choose-our-loans/compare-our-loans

    Ultimately you signed for it at the end of the day. You can get as angry as you like about the interest you've paid but you signed up to a 15 year loan with a sub prime lender with eye watering interest rates so paying back several times what you borrow is what happens with those.

    As said the only thing you can do is get a copy of the contract you signed and see if it states 5 years or 15 and if it says 15 slap yourself around the face with a wet kipper for being so daft. Given that 5 years at £151 would be an APR of around 29% I can't see it being 5 years from Bright House.
  • sourcrates
    sourcrates Posts: 28,717
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    You could do with getting a copy of the contract so you can see what it is that you've signed. You should be able to ask the company who now own your loan for a copy of this (it might cost you a few pounds though). All of the full cost for the loan (and the APR) will be on the contract.


    Section 79 CCA applies to secured loans secured by a second charge on your property, as well as unsecured debts.


    The statutory payment/cost is only £1.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • bris
    bris Posts: 10,548
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    Take out a loan to pay the balance off at a much better rate over 3 or 4 years and get this one off your back.


    This time please read what you are signing.
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