Can a Lender Legally do this?

bery_451

Hello,

My younger brother took out a unsecured loan for £2368 from a high street bank at 6.4% Interest rate over 36 months agreement. However my younger brother lost his part time job and no longer can afford the monthly payments and the lender registered a default on his credit report but the lender registered the amount £2957 (plus the added whole term interest) owed on his credit report not the £2368 amount. Not only that they sold his debt to a 3rd party debt collector who also added their default to his credit report.

So the questions are?:

• Can the original lender legally add the whole term interest to the borrowed amount straight away for the first default on his credit report even though the repayment term over time has not done completed its course of time? If so isn't that unfair that the borrower has defaulted on the added interest amount too when time for interest has not completed its course? Interest is under the condition of time correct?

• Why is it that not all lenders do this unfair practise of adding the whole interest term when registering the default on someone's credit report for the first time and only register the original borrowed amount excluding the interest?

• Can the borrower default twice on the same loan? Like above the original lender registered default and then sold debt to 3rd party who registered a separate default for the same loan debt that looks like 2 separate entries on the borrowers credit report making it look like the borrowers owes more money than it is actually owed making the credit report look even more worse.

Can lenders and 3rd party debt collection agencies legally do all of above that is within FCA regulations?

born_again

How long from not paying bank, to then passing the owed money on? Did they ever make any payments?

Amount due does include interest, as that is the actual amount that would be paid unless settled early.