Doorstep loans - G R Finance

american_dreamer

We have recently found out a relative is in financial crisis which we are trying to help out.

One thing they have is a doorstep loan with G R Finance Limited. I am having trouble understanding it and if I am correct they are taking additional money.

Loan £400
Interest £152

Payments £24 per week for 23 weeks
= £552

However, the 'loan lady' only gives relative £248 cash saying that is less the interest which she says she is taking upfront.

That means relative is paying interest twice, right?

Has anyone else had any dealings with them or other doorstep lenders to shed any light on this?

Ben8282

I think the 'loan lady' has stolen the £152 for herself.
You need to contact the loan company directly and inform them of what has happened.
Are there any witnesses who saw that the relative only got £248 should the 'loan lady' deny it and say she gave the full amount?

american_dreamer

That's the conclusion we've come to.

This is the sixth loan and she has done this every time. No witnesses just one word against the other unfortunately.

SandraX

Stinks of a crime.

micky2phones

Hi. Can you ask for another loan with someone there to see what happens ?

If no money is taken up front then ask why, then take it from there.

It may be the case this happens a lot and they are waiting to be caught, if you can do sooner than later you may get there money back.

boo_star

https://www.consumeractiongroup.co.uk/forum/showthread.php?313523-doorstep-loans

Looks like these people know what side their bread's buttered on.

I'd be inclined to tell them to go forth and multiply with themselves but YMMV.

tealady

Could the "collector" be a loan shark, might be worth contacting the Illegal Money Lending Team for advice. (go via the gov.uk or Birmingham City Council website for details)

american_dreamer

Thanks for all the replies. We got to the bottom of it today...

Relative was confused by the terminology used. It turns out they were deducting the balance of the previous loans that relative had not cleared before they took out another loan, including late payment charges. So not two lots of interest payments.

So not criminal in the legal sense. Sorry for the premature posting.

We've paid the balance and drew a line under it.

D_M_E

Did you also tell the collector never to return?

tealady

Thanks for the update American Dreamer glad it has been sorted