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

mcpitman

I do sympathize to some extent, but come on......... 15 years later and now you question the repayments?

This isn't unfair lending, it is narrow-minded borrowing. That is not always the lenders fault.

Dave_5150

Marvel2020 said:

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. 

What law has been broken?

superbigal

To get to £140,000 repaid on £25,000 over 25 years needs a rate well above 20% over the term.   Not sure how this is linked to an 8% rate ?  Particularly as rates fell like a stone around the time he took the loan out.
Even If original payments were £300 ish that relates to a rate of circa 15% at the outset.

Marvel2020

The rate featured on his paper work is 8%. Though his monthly payments where initially £300, they have now increased to £460 per month.  He was verbally told it would be around £45,000 that he would be paying back.  There was not final figure on paper work.

TadleyBaggie

Marvel2020 said:

There was not final figure on paper work.

Which is understandable if the interest rate was variable.

Clive_Woody

Marvel2020 said:

The rate featured on his paper work is 8%. Though his monthly payments where initially £300, they have now increased to £460 per month.  He was verbally told it would be around £45,000 that he would be paying back.  There was not final figure on paper work.

Even at £300/month for 20yrs it would be a lot more than £45,000, a 20 second check using a calculator would have confirmed that....unless there was some expectation that monthly payments would decrease.

This was a loan for a relatively large amount taken over a very long term. I'm not sure what you think the lender has done wrong that you would challenge in court.

Herzlos

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.

You can refinance to save money now, and then take them to court if you can find somehow who feels like you have a case. A court battle could grind on for years whilst you're still paying out £460/month + legal fees.

What's the current rate and settlement figure? Can you beat that with a better loan deal now?
Can you sell off any assets and dump that into the loan?

DullGreyGuy

Marvel2020 said:

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. 

Did the FOS say they couldnt look at the complaint, and if so what grounds, or did they not uphold the complaint which once escalated to an Ombudsman and they concur would only leave you with court?

Was your complaint that the loan was unaffordable and so shouldnt have been given or that its "unfair" that they allowed you to borrow a loan over 25 years at an initial 8% rate?

Caz3121

Marvel2020 said:

As mentioned this loan was taken out in 2008 and will come to an end in 5 years time

you earlier said it was 300 months, would that not make it 10 years to go?
It sounds like he borrowed a large amount of money and was comfortable agreeing to the monthly repayments without considering that it was a loan over a long term so would accrue interest over a long period
paying £300 a month over 300 months would equate to £90k

kaMelo

Marvel2020 said:

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. 

Is this an Ombudsman decision in relation to a complaint you've made to Prestige and if so, other than the interest rate charged, what is it you're complaining about?  I also don't understand why the financial ombudsman is giving you legal advice by suggesting you take Prestige to court. That's outside of their remit (and probably some other regulations too)  What it is they and/or you think that Prestige are doing (or have done) that is unlawful.

I don't see anyone judging, just trying to understand what it is you think they've done wrong and what you would like to happen to put that right.