Help! Unenforceable Loan? (I'm new!)

ljn_2

Hi there,

I sent this email to Martin and he said you guys may be able to help me. I'm on maternity leave (got 10 month old baby) and haven't been able to get out properly for some advice. Can you help me?

Hi Martin, I hope you don't mind this query but I was wondering if you have put anything on Money Saving Expert website about "unforceable loans" yet. I know there is information from users in the forums but I think I saw something saying you were possibly going to add some info too. I have a loan from 2005 which I've been paying no probs, then I got a call in 2006 offering me some extra. It had to be a minimum of £5000 extra (which I took) but I didn't get a new agreement. I phoned them this year for a copy of the agreement and settlement figure. The settlement was much more than I'd expected considering how long I've been paying but they sent me a copy of the old agreement. I realised then that I haven't actually completed a new agreement or any paperwork for the extra money that I borrowed so I've no idea what the final amount is over the term (secured loan). I've searched all over the web and have been considering LoanCheck but not sure if I should trust a company to do it for me. Not sure where I stand... (The original amount borrowed was £19,000. Then I borrowed the extra £5k so I've borrowed £24k. However, the settlement figure is £22,700 after all the payments I've made! Monthly payments are £255!)

yours gratefully,
Lisa

PammyG_3

ljn wrote: »

Hi there,

I sent this email to Martin and he said you guys may be able to help me. I'm on maternity leave (got 10 month old baby) and haven't been able to get out properly for some advice. Can you help me?

Hi Martin, I hope you don't mind this query but I was wondering if you have put anything on Money Saving Expert website about "unforceable loans" yet. I know there is information from users in the forums but I think I saw something saying you were possibly going to add some info too. I have a loan from 2005 which I've been paying no probs, then I got a call in 2006 offering me some extra. It had to be a minimum of £5000 extra (which I took) but I didn't get a new agreement. I phoned them this year for a copy of the agreement and settlement figure. The settlement was much more than I'd expected considering how long I've been paying but they sent me a copy of the old agreement. I realised then that I haven't actually completed a new agreement or any paperwork for the extra money that I borrowed so I've no idea what the final amount is over the term (secured loan). I've searched all over the web and have been considering LoanCheck but not sure if I should trust a company to do it for me. Not sure where I stand... (The original amount borrowed was £19,000. Then I borrowed the extra £5k so I've borrowed £24k. However, the settlement figure is £22,700 after all the payments I've made! Monthly payments are £255!)

yours gratefully,
Lisa

Hi Lisa

I am using Loancheck and would certainly recommend them - they have also been recommended by WHICH magazine in the June 2008 issue!!

I'm certain WHICH would have checked them out thoroughly before giving them their seal of approval.

Good luck

Pam

standupguy

I would check the terms and conditions on your document as I suspect that there will be a clause stating that any further advances under the agreement, that is your £5000, is subject to the same property charge and terms and conditions.

If this is the case then a new agreement is not needed - it is just a further advance under the existing agreement?

ljn_2

Thank you so much all! I was holding onto the forms that Loan Check sent me but I'll send them off now.
What a helpful forum this is. I should have joined ages ago!
I read the terms and conditions on the agreement and there is nothing there about the further advances thing, so I'm hoping I'll be able to do something with that.
I'm not against paying the money back, as I have borrowed it after all, but I don't like the idea of the settlement figure being as much as it is and I've no idea where my payments are going.
I thought after 2 years of paying, it would have reduced by much more than £1300. That's why I'm looking into it.
Thanks again! x