Taking advantage of the old with loan agreements

kevana

Just found out today that my 74 year old grandfather in receipt of state pension (may get a tiny bit more for disability) signed a credit agreement in 2005 for a mobility bed for my grandmother at a cost of £4,550.00 with a £100.00 deposit (bad enough itself) but apparently the agreement he signed means that he is actually paying back £3,041.00 in interest payments. Two hours ago I felt very wound up about this, now I just feel depressed.

This was apparently sorted out by a ?mobility? representative. I know that my grandfather didn't realise he was buying a £7,000.00 bed, he cannot read so passing over documents with 'the relevant information' would be useless as would any talk of APRs(something I find confusing and headache inducing). Granted he really should know better by now (as a couple my grandparents have been in debt off and on for most of their married life) but I do think some sort of care should be shown by these companies. To me this is a completely extortionate.

Is it completely out of the way to ask for things to be set out as:

You borrow this amount £........
Interest payments will be this amount £......
The total amount you pay will be £.......
Your monthly payments will be £.......
If you miss a payment you will be charged and extra £......

Perhaps this already happens with some companies although not in my experience and if it is laid out the information is separated, swallowed up in legal speak and in my opinion about as confusing as it can be made.

Just wondered what anybody else thought.

Feeling depressed in Yorkshire

RAMBLER

Hi Kevana,

These companies appear regulally on Watchdog and Rogue Traders - they are excellent at giving long speeches and getting customers to sign contracts whilst appearing to be doing you a favour.

Best advice I can give is go the the Citizens Advice Bureau or wait until a few more people post on this. Normally you have an opt out period, but after two years not sure if there is much you can do.

kevana

Thanks I am sure I will get some helpful suggestions off the board and looking into the site, waiting for more information from company (after telephone converstion) and grandfather to try to make up a workable plan for him, I do want to try to help him at least not make the situation worse by missing payments. At the end of the day he did sign for and receive this bed.

I did make the comment that I am in the wrong business but then I am not soulless!!

I've read other posts and seen the news and watchdog - compared to some I know my grandfather is not that badly off - I just get really p***d off about it all and really needed to 'vent'. Couldn't go to any friends as it is not my financial problems I would be talking about.

alwaysonthego_2

What is his mental state like? There is legislation that covers mental health and credit agreements.

pinkshoes

If he can't read, then how could he possibly sign to say that he had "read the terms and conditions"? Was he aware of what he signed?

Did he NEED the bed? (i.e. was the one he had already fine and he was pressured into this purchase, or did he call the company and invite them round).

I suppose contacting the CAB is a good start, as I'm quite sure the form would have asked him to declare that he had READ the terms and conditions, and if he can't read, then he couldn't have known what he was signing!

kevana

Hi, thanks for replies would have answered sooner but computer at home is having a 'moment'.

Unfortunately it seems the situation could be labelled under 'stupid assumptions'. Went up yesterday to have a look at the paperwork and it turns out that the representative was invited, did make a complete list of interest charges, payments and final amount and that my grandmother was there at the time. I do believe that my grandfather had no idea of the actual amount he was signing for - he thought he was buying through the actual bed company at the cost of the bed and unfortunately I think my grandmother either thought I want this bed never mind the price (which she would never admit to!) or just didn't read the paperwork. Really makes you wonder what your supposed to do, what it would come down to is their word against ours and there really is no ambiguity in the paperwork. Anyway I have spoken to the CCCS and will pass their number on to my grandfather to start the ball rolling to get an appointment (with me there).

I do however have a problem with companies advertising this sort of specialist item (for the ill and/or old) and using loan companies with such extortionate rates.

pinkshoes

My grandmother contacted a company she found advertised in an OAP's magazine about one of those bath seats that goes up and down.

Luckily my dad was there when the sales person called round (! I think she was expecting a leaflet in the post, not a pushy salesman), as this guy was trying to persuade my gran that paying out £100s for this device was exactly what would help her with her arthritis! The poor woman was on a state pension stuck in private rented accomodation, and certainly didn't have this sort of money, and given that she's quite deaf and won't admit to not understanding stuff, she would have no doubt signed something!!

After doing some research, we later discovered that because of her medical condition, she was entitled to one for FREE!!

kevana

Glad that your grandmother didn't get 'caught'. I am sure that I depressed a customer yesterday by getting into a conversation about this sort of thing. Elderly neighbours of a good friend of mine had a call from salesmen who were kind enough to drive them to the cashpoint!!! It shouldn't be necessary sometimes to sit and do a mantra 'most people are good, most people are good'.