Claiming back charges GE Money

dogcrazylady · 7 April 2018 at 10:03AM

I am looking for advice. In 2007 I took out a 25k secured loan with GE Money. In hindsight a stupid thing to do. Personal circumstances with my ex partner forced me to to consolidate debt he had ran up in my name. He promised to pay and didn't, so I covered it until I lost my job in 2009. I was some time out of work and after I was getting paid a much lower wage. With mortgage arrears etc I just continued to pay the mortgage and left the loan. After much stress and ignoring letters, I finally took control in 2013 when the police assisted me in removing my ex partner from my home. I contacted Christians against poverty for help and made an arrangement with GE Money, I was paying about £100 on top of the loan payment. They took me to court in 2014 to get possession. The judge granted a Norgan agreement, meaning I could pay the balance over the term of the loan. My original repayment was £257.75 per month. During the loan they had raised interest rates and made it £276.95 not sure how as base rates have gone down. At court I agreed to pay in total £402.46 per month. which I continued to pay. In fact I am over paying at £420 per month and have been since 2015. However the balance still kept going up not down. In 2016 the off loaded the loan to Arrow. I continued to pay at the same rate. The loan balance kept going up and in October it peaked at £59,645.58. I contacted Arrow, who agreed for me to pay in interest free. So now it is going down. In October 2017 They sent me a letter stating my arrears balance was in excess of 26k of which missed payments were £10,733.61 arrears related interest and charges were £15,663.04.
I am now arrears clear on my main mortgage, and have cleared off nearly all other debts and this is like a noose around my neck now.
My question is; Is there anything I can do to help reduce the balance? Are there any charges I can claim back?
I know I sound like I have been negligent in not sorting sooner, but I was going through a really difficult time personally and was suffering from anxiety and depression. I am now in a good place. I have a better job, and I have dealt with debts one by one until they are all sorted except for this.
Does anyone have any advice?

[Deleted User] · 7 April 2018 at 10:10AM

dogcrazylady wrote: »

My question is; Is there anything I can do to help reduce the balance? Are there any charges I can claim back?

Historical bank charges cannot be claimed back, I'm afraid.

As you are now already paying back the loan interest free there is little else you can do other than continue to pay.

You might wish to post on the "Debt Free Wannabe" board for further help and advice.

-taff · 7 April 2018 at 11:17AM

You won't be able to clima back any interest etc, but a - did you have PPI on it? If you did, make a complaint about that.
Secured debt is a nightmare because as you found out, they can go for possession of your house. Can you remortgage to add this debt to your mortgage because it'll probably be less to pay back if you continue to overpay your mortgage by the same amount you are paying for the loan.

dunstonh · 7 April 2018 at 11:24AM

During the loan they had raised interest rates and made it £276.95 not sure how as base rates have gone down.

When you use sub-prime lenders, you get sub-prime rates and movements are not just about interest rates but also risks. Also, a lot of the subprime lenders dont use base rate. They use other methods, such as Libor.

In fact I am over paying at £420 per month and have been since 2015. However the balance still kept going up not down

Whilst you may have agreed a level to stop a repossession, it does not necessarily mean you are paying enough.

My question is; Is there anything I can do to help reduce the balance?

Well done on getting back on track with the main mortgage. You now need to do the same with this one. i.e. start paying more.

dogcrazylady · 7 April 2018 at 2:03PM

I am not sure if I am able to do this, but I was thinking that I could make a settlement offer on the loan and tag it on the mortgage. I am not sure if I can do this on a secured loan though.

Nasqueron · 7 April 2018 at 6:36PM

dogcrazylady wrote: »

I am not sure if I am able to do this, but I was thinking that I could make a settlement offer on the loan and tag it on the mortgage. I am not sure if I can do this on a secured loan though.

You can try it but they don't have to accept and after all, why would they if they have it secured on your house - nothing to lose but they are in a very strong position to say no

Claiming back charges GE Money

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