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Covid loan break then this letter

illbeurhuckleberry
illbeurhuckleberry Posts: 168 Forumite
Fourth Anniversary 100 Posts Name Dropper
in Loans
Has anyone who took a Covid break From a loan received a similar letter? It states under the Consumer  act your in arrears and may be charged. This was never made clear at the start and just wondering is it something to be concerned about? 

Comments

  • MalMonroe
    MalMonroe Posts: 5,783 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    It seems to be a letter they're sending to everyone who had a break, something they have to do under the Consumer Credit Act,  just to let you know that they're not going to be letting you off any repayments, you've been granted a holiday but you still have to pay them. 

    I remember seeing Martin on TV advising to be careful if you took a holiday because you're still liable for the payments and it doesn't mean credit card companies will be forgetting about them.

    It seems to be a letter they're legally bound to send. But I have to say that if it were me, I'd be wanting to pay off the arrears that have built up because there really did seem to be little point in giving people these breaks, when all they've done is make people worry even more about payments. 

    My advice, pay them as much extra as you can and get rid of the arrears so they stop writing to you. 
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 18 August 2020 at 6:42PM
    illbeurhuckleberry said:
    Has anyone who took a Covid break From a loan received a similar letter? It states under the Consumer  act your in arrears and may be charged. This was never made clear at the start and just wondering is it something to be concerned about? 
    The letter says that you're legally NOT in arrears.

    You won't be charged but it would be a smart idea to get back on track if you can.
  • SpreadableToast
    SpreadableToast Posts: 196 Forumite
    100 Posts Name Dropper
    Deleted_User said:
    illbeurhuckleberry said:
    Has anyone who took a Covid break From a loan received a similar letter? It states under the Consumer  act your in arrears and may be charged. This was never made clear at the start and just wondering is it something to be concerned about? 
    The letter says that you're legally NOT in arrears.

    You won't be charged but it would be a smart idea to get back on track if you can.
    No, it says that the payments they are NOT making are legally considered arrears.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Oops.

    So it does.
  • SpreadableToast
    SpreadableToast Posts: 196 Forumite
    100 Posts Name Dropper
    Deleted_User said:
    Oops.

    So it does.
    To be fair it would have been a lot easier to read if the OP had rotated the pictures before posting them...
  • illbeurhuckleberry
    illbeurhuckleberry Posts: 168 Forumite
    Fourth Anniversary 100 Posts Name Dropper
    edited 19 August 2020 at 7:44AM
    thanks everyone thanks everyone I’ll pass the info on.
  • Grumpy_chap
    Grumpy_chap Posts: 19,010 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Someone else got the same letter in another thread.
    https://forums.moneysavingexpert.com/discussion/6181308/loan-break-letter-from-tesco#latest
  • cymruchris
    cymruchris Posts: 5,571 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    Grumpy_chap said:
    Someone else got the same letter in another thread.
    https://forums.moneysavingexpert.com/discussion/6181308/loan-break-letter-from-tesco#latest
    It's the same person posting twice. :)
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