Please help £75k debt!

ManyWays

I think you should clarify the current loan position, I suspect it will be ok and its just badly worded.

I think you can take the flex complaint to the Ombudsman, say you also complained about the overdraft and loan but you are hppy with those response 

Lighthouse81

Hi I have asked if the interest on the loan is frozen and this is the response I had 

Our complaints team have asked us to get in touch to look at freezing the interest on your loan moving forward.

The only way we can do this is by setting up a repayment plan. Any negative credit file impact relating to this will be amended so it won’t impact your score.

Once we have a plan set and interest is frozen moving forward, we will arrange for any accrued interest up until that point to be refunded directly to your loan balance.

We’re unable to confirm the interest refund or apply this until the plan is set up as interest accrues on a daily basis, so we need to freeze this first with the plan. The sooner we get a plan set, the sooner we can confirm this information.

If you’d like to explore a repayment plan for Flex and the overdraft too we can certainly support with this. These arrangements would be reported to credit reference agencies as normal due to both balances being deemed responsible at this time.

So we can support with the arrangement, can you please answer the following questions?

Are you currently receiving a regular income and do you expect any changes to your finances in the coming months?

Are you up to date with priority bills? (rent, mortgage, council tax, utilities etc?)

Are your existing monthly loan payments of £376.41 affordable for you or would you be looking at reducing this monthly repayment amount?

Do you require a plan for your remaining overdraft and Flex balances? If not, when would you be looking to catch up with these?

Thanks, Once we have the above information we can discuss the next steps.

Let me know if you have any questions.

wolveswolves29

Strange as when my loan got accepted for unaffordable lending then refunded intrest and now I’m just paying the capital off at a cost I can afford definitely worth escalating to FO 

Lighthouse81

Thanks Wolveswolves did you arrange a payment plan with them at the time and did the amount owed change in your banking app? Because in my app it still shows that I owe capital plus interest and they are basically saying they won’t take the interest off unless I arrange a payment plan.

Lighthouse81

This is the response I have typed up does this look ok?

Thanks for the message just to clarify, as I am considering my options in response to the complaint and final response from yourselves. As I have had a complaint with yourselves upheld that I was lent to irresponsibily to which you have refunded interest on my original loan to date + my overdraft, but you won’t refund my interest to date on my top up loan which was part of the irresponsible lending and will continue to charge me interest going forward unless I agree a repayment plan. Just slightly confused as in my final response it says I will arrange to have interest paid on my top up loan to date refunded off of the loan, and also to arrange a repayment plan but doesn’t say if I organise a repayment plan that’s what will happen? Are you able to help me today with how much interest I have paid on my top up loan to date and if that figure today is refunded the outstanding balance that would be owed please, Thanks for your help.

ManyWays

Lighthouse81 said:

Thanks Wolveswolves did you arrange a payment plan with them at the time and did the amount owed change in your banking app? Because in my app it still shows that I owe capital plus interest and they are basically saying they won’t take the interest off unless I arrange a payment plan.

I really dont think this is a problem. They will take the interest off, its just they want to get a payment plan agreed

Lighthouse81

Thanks Manyways I assume by their response the interest would be frozen ( as it’s added daily) when it defaults anyway,

So my plan of action is to

Email confirming them to pay the additional interest they have agreed to pay into my overdraft ( which will clear that off)

Speak to the financial ombudsman, in regards to seeing if I can get any interest/charges repaid on my flex 

Shall I contact them ref loan and repayment plan or now just leave it as is and let it default anyway

ManyWays

I assume by their response the interest would be frozen ( as it’s added daily) when it defaults anyway,
In my experience it is never safe to assume that will happen with a loan. 

wolveswolves29

My account on there side says with interest added but my credit file says the balance without interest I was on a arranged payment plan with them witch I massively regret because they was adding interest I had another loan with them witch iv managed to settle for 50% without it going to the debt collector this was also rejected by FO

Lighthouse81

Thanks Manyways so am I safe to make an offer of payment for the loan then at what I can afford  as they have said it won’t affect my credit rating so wouldn’t default anyway, then i would be safe in the knowledge that they will freeze the interest and take interest already paid off of it?