£25,000 secured loan payback £140,000 - Help

Marvel2020

Hi has anyone been in this situation before?  My husband took out a loan of 25K in 2008 which he then works out to be £140,000.  Financial Ombudsman have said we need to find a lawyer that will be able to help us but unfortunately have not had any luck.  I can not believe this is legal.  Unfortunately my husband was not in a good place when he took this loan. The loan is currently with a company called Prestige - Any suggestions?

DullGreyGuy

Any suggestions for what?

Are you in a position to refinance? What is the early repayment charge?

TadleyBaggie

More details needed, i.e. term and APR would help.

Marvel2020

The total loan facility was is 300 monthly repayments of £300.14 The interest rate was link to changes in the base rate of First National Home Finance Limited (FN base lending rate) which was 8.500%.

DullGreyGuy

A 25 year term loan for £25k is going to add up... if its linked to rather fixed at then you will be seeing movements as the bank rate moves. 

Marvel2020

I do not think refinancing is a good idea.  Having spoken to the FO they had informed us that we should take this to court, as they believe like myself this is unfair loan practice.  However we finding it difficult finding a suitable lawyer who take this on a no win no fee basis.

Marvel2020

The monthly repayments have increased to £460 per month

Dave_5150

Marvel2020 said:

I do not think refinancing is a good idea.  Having spoken to the FO they had informed us that we should take this to court, as they believe like myself this is unfair loan practice.  However we finding it difficult finding a suitable lawyer who take this on a no win no fee basis.

Why do you think that might be?

silvercar

Prestige offer loans / mortgages to those with adverse credit history ie high street banks and building societies won’t offer loans at a better rate. Presumably your husband understood that the rate was higher than others, but this was the best rate he could get and he wanted or needed the money. 

I’m out really sure what he would be going to court to say?

kaMelo

What is it that you think Prestige has done wrong or has not followed the terms of the agreement?

Marvel2020 said:

I do not think refinancing is a good idea.  Having spoken to the FO they had informed us that we should take this to court, as they believe like myself this is unfair loan practice.  However we finding it difficult finding a suitable lawyer who take this on a no win no fee basis.

Have you had a complaint dealt with by the Financial Ombudsman in regard to this and if so, what exactly did they say in their decision? If the Financial Ombudsman think Prestige are being unfair then they have the power to put that right, to ensure a customer is treated fairly.
If however the Ombudsman think you should sue Prestige then I'm staggered that they're now offering legal advice, I'd also be interested to know exactly what they think Prestige are doing that is unlawful. .

Marvel2020

FO suggested going to court as they believed this was an unfair / unreasonable loan.  We had a great lawyer but they had to pass our case to another firm due to covid. The new firm has now said they can not continue as 4 years ago my husband accepted an offer of 2K for PPI.  As mentioned this loan was taken out in 2008 and will come to an end in 5 years time. He was really young when he took the loan, his parents had just divorced and mentally was not in a good place. So please do not judge him as he fully aware of his mistake.