Have paid £8,000 but still owe the same!!!

weebit

you should find out if you have PPI or not. if you do have it, reclaim it! the fact that you dont know if you have it or not is perfect grounds for a miss-selling claim. see here:
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

next, ask your loan provider for a settlement figure. the balence of 10,500 seems to be the amount you will pay off should you carry on your monthly payments as normal. a settlement figure will deduct any interest left on the loan and leave you with only the money left to pay.

also, if they are still charging interest, try your damn hardest to stop it! write to them, if they say now, write to them again. and again. and again

continualdiamond

I noticed you said you rang Lloyds who informed you, you're still paying interest, so naturally i assume this is who the loan is with??

In saying that, they're one of the worst for still charging interest while people are in a DMP. Just see my sig, it took a very harsh letter to them with quoting from this (http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf)
in order to get the amount back that i did.

I am in a DMP and only now have they frozen interest on my old overdraft, loan and OH cc since i sent them a letter. No amount of talking on the phone would make them do anything about it.