Loan query

Sharz

Hi.
I will try and keep my first post concise.
I took out a £7000 loan with Welcome Finance around 2003/4. The loan was sold on to Prime Credit 5 which is administered by Asceden Limited but registered as Alpha Credit Solutions.
The loan agreement turns out to be for 180 months🤔😭 not 18 months as I thought. I cannot find my original loan agreement taken out with WF (but will keep looking for it). However, since PC5 took over the loan it has suddenly become a mortgage. In addition to this, somewhere along the line I missed a payment of 1 month and now owe £409.66. The monthly payment £302 which is now being chased by Debt Management Services.
Took out a PPI claim when the loan was with WF but not sure if I could do the same thing with PC5 as I have already claimed PPI.
I have not contacted them as I didn't know how to deal with this.
Any advice on how to handle this would be appreciated.

[Deleted User]

Contact them, ask for a current balance and make an arrangement to pay.

If you need a copy of your loan agreement, ask them for one. It won't have 'suddenly' become a mortgage. You'll have taken out a secured loan.

You cannot complain about PPI being sold twice when it was only sold once.

Sharz

Thank you for responding.

Sharz

Hi

Excuse my ignorance but can a secured loan agreement become a mortgage without Solicitors being involved?

What is the lowest amount I can offer for the arrears?

ciderboy2009

As ZX81 has said - it hasn't "become a mortgage".

A secured loan and a mortgage are much the same thing - money lent with a charge being put on your property to secure it.

I would pay what they are currently requesting for the arrears as it doesn't seem like they've added on as much as some companies would. If they take it further then the amount owed could increase quite dramatically.

Sharz

Hi
Have contacted Prime Credit 5 who have notified me that my arrears are now £709+£90 additional costs.

They will be sending me a form to complete regarding my income status.

Not sure why they did not include the full arrears amount in their correspondence but will complete the and see what haapens.

[Deleted User]

The arrears are attracting interest all the time, so will continue to increase.

Are you also still missing the monthly payments?

Sharz

OK that's interesting as any letters I receive from them clearly states mortgage reference number so understandably I am a bit confused

Sharz

No. I have kept up with all my monthly payments but somewhere way back I missed one payment

MEM62

Sharz wrote: »

OK that's interesting as any letters I receive from them clearly states mortgage reference number so understandably I am a bit confused

It sounds like you have no understanding of the loan agreement that you entered into. You need to obtain copies of the loan agreement so that you know what you are dealing with. As previously pointed out a loan cannot just become a mortgage.

Gaz83

This is absolutely mental, OP. Are you saying you borrowed £7,000 and agreed to pay it back at £302 for 180 months (fifteen years)? So it's going to cost you £54,360 to pay back £7,000?