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  • FIRST POST
    • Silveirinha
    • By Silveirinha 10th Sep 19, 2:18 PM
    • 10Posts
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    Silveirinha
    High interst rate on arrears for secured loan
    • #1
    • 10th Sep 19, 2:18 PM
    High interst rate on arrears for secured loan 10th Sep 19 at 2:18 PM
    Hello,
    My ex husband and I took out a secured loans with Prestige (then GE money) 15 years ago. My ex shortly left me after that when I was on MAT leaave. As I was on MAT leave I quickly found my self in arrears. My EX never contributed a penny. For the last 6 years I have made every monthly payment plus a bit extra to bring down my arrears. However when i got a statement it said I still owe 34K (original amount) and that I was being charged intererst on the arrears (2k) . My monthly paymetns are 420 ( including extra for arrears) however my interest is nearly 300 a month. My loan is due to expire in 2021 yet I still owe nealry the whole amount. Is this allowed? is there anything I can do? Due to recieving no maintainence from ex money is very tight to see a solicitor.Thanks
Page 1
    • Gaz83
    • By Gaz83 10th Sep 19, 2:22 PM
    • 3,790 Posts
    • 7,059 Thanks
    Gaz83
    • #2
    • 10th Sep 19, 2:22 PM
    • #2
    • 10th Sep 19, 2:22 PM
    The issue with these loans is that they usually can have moderately high interest rates over such a long time, so any time that people find themselves in arrears they can quickly build up.

    What was the interest rate and how long was the loan taken out for? What was the contractual payment?
    "Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."
    • Silveirinha
    • By Silveirinha 10th Sep 19, 2:27 PM
    • 10 Posts
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    Silveirinha
    • #3
    • 10th Sep 19, 2:27 PM
    • #3
    • 10th Sep 19, 2:27 PM
    The interest rate is 12.11% . It was taken for 15 years and the contractual payments were 324 to begin with and are now 347. However I have been paying 420 to try and clear the arrears. This loan is due to expire in 2021 and I still owe 30K. I'm at a loss really
    Last edited by Silveirinha; 10-09-2019 at 2:36 PM.
    • zx81
    • By zx81 10th Sep 19, 2:31 PM
    • 23,501 Posts
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    zx81
    • #4
    • 10th Sep 19, 2:31 PM
    • #4
    • 10th Sep 19, 2:31 PM
    You need to ask for a statement.

    The key is going to be in the arrears you built up and how many payments were missed. It looks like there were quite a few.
    • Silveirinha
    • By Silveirinha 10th Sep 19, 2:42 PM
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    Silveirinha
    • #5
    • 10th Sep 19, 2:42 PM
    • #5
    • 10th Sep 19, 2:42 PM
    So looking at last years statement for 10 months I have paid 4200 and 3030 was on interest, so hardly making a dent in the loan. Just seems a bit unfair. Especially when I have kept to arrangement for the last 6 years at least and even though it's a joint loan I have been the only one paying it back since day one.
    • zx81
    • By zx81 10th Sep 19, 2:50 PM
    • 23,501 Posts
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    zx81
    • #6
    • 10th Sep 19, 2:50 PM
    • #6
    • 10th Sep 19, 2:50 PM
    That figures sounds correct, given you will owe 30k.

    You may not think it's fair, but it's the terms you agreed to.
    • Silveirinha
    • By Silveirinha 10th Sep 19, 2:54 PM
    • 10 Posts
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    Silveirinha
    • #7
    • 10th Sep 19, 2:54 PM
    • #7
    • 10th Sep 19, 2:54 PM
    Yep I sure did. 5 days after giving birth to my second to try and save my marriage. But I didn't sign upto my ex walking out and shirking his responsibities and leaving me with 2 dependents and a massive loan.
    • zx81
    • By zx81 10th Sep 19, 2:56 PM
    • 23,501 Posts
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    zx81
    • #8
    • 10th Sep 19, 2:56 PM
    • #8
    • 10th Sep 19, 2:56 PM
    I don't doubt you.

    But unfortunately the loan agreement doesn't make allowances for domestic changes. It's based only on capital, rate and term.
    • DCFC79
    • By DCFC79 10th Sep 19, 2:57 PM
    • 34,876 Posts
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    DCFC79
    • #9
    • 10th Sep 19, 2:57 PM
    • #9
    • 10th Sep 19, 2:57 PM
    Maybe seek advice from Stepchange.
    • Willing2Learn
    • By Willing2Learn 10th Sep 19, 3:12 PM
    • 4,021 Posts
    • 3,595 Thanks
    Willing2Learn
    Why does your ex-husband not pay for the support and maintenance for his two children?
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • DCFC79
    • By DCFC79 10th Sep 19, 3:26 PM
    • 34,876 Posts
    • 22,081 Thanks
    DCFC79
    Why does your ex-husband not pay for the support and maintenance for his two children?
    Originally posted by Willing2Learn

    If you haven't chased him for this OP you really should do.
    • foxy-stoat
    • By foxy-stoat 11th Sep 19, 7:40 AM
    • 4,853 Posts
    • 2,882 Thanks
    foxy-stoat
    If you cant re-finance the loan with a cheaper rate then look to sell your house and move into a cheaper one - or you will have this round your neck for a long time, as your ex clearly isn't making any effort to help.

    What was the 30,000 for, just out interest?
    • MEM62
    • By MEM62 11th Sep 19, 8:32 AM
    • 2,758 Posts
    • 2,454 Thanks
    MEM62
    Yep I sure did. 5 days after giving birth to my second to try and save my marriage. But I didn't sign upto my ex walking out and shirking his responsibities and leaving me with 2 dependents and a massive loan.
    Originally posted by Silveirinha
    I don't doubt you.

    But unfortunately the loan agreement doesn't make allowances for domestic changes. It's based only on capital, rate and term.
    Originally posted by zx81
    zx81 is right. They are separate subjects although I appreciate that your circumstances were and are difficult.

    What happened to the money that was borrowed and what steps have you taken in respect of chasing your Ex in respect of honouring his financial commitments? Was there are financial settlement as part of your divorce?
    • Silveirinha
    • By Silveirinha 11th Sep 19, 11:08 AM
    • 10 Posts
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    Silveirinha
    He used to own our own restaurant. Unknown to me he had used the profits from the restaurant to feed his gambling habit and therefore owed suppliers rent etc. I was just about to give birth and our marriage was in serious trouble so to try and save it we took out this loan to keep the restaurant going. He still did a runner anyway leaving me with it. I had my own job and was on MAT leave so started to fall behind with payments
    • Silveirinha
    • By Silveirinha 11th Sep 19, 11:10 AM
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    Silveirinha
    I used the money to pay off debts . Yes I have chased him but he has never disclosed his address and have moved house and job several times. He also lives in Scotland so hard to actually find out his whereabouts without paying someone.
    • Silveirinha
    • By Silveirinha 11th Sep 19, 11:12 AM
    • 10 Posts
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    Silveirinha
    Because he is constantly changing jobs and house and lives in Scotland. Over 13 years I've probably had around 400 of him here and there. whenever CSA catch up with he disappears again
    • swardean
    • By swardean 11th Sep 19, 12:06 PM
    • 50 Posts
    • 22 Thanks
    swardean
    Having once having one of these loans Silverinha, I definitely feel your pain.

    You say that the loan is due to expire in 2021. With your current monthly payment and amount owed, that does not add up. Owing 30k at 12% interest and with monthly payments of 420, it will take you a further 11 years to pay off the debt.

    You need to check with your provider for a revised statement of payments, balance and future payment schedule. If you can re-finance at a better rate, I would do that. I managed to extend my first mortgage and take equity from my property to pay off the loan. They may negotiate the settlement figure for an early payment

    If you are still struggling, you can ask them to try and freeze interest but they would only probably do this, if you can prove you are unable to pay and they would want you to evidence this with a detailed income and expenditure evaluation.

    Hope this works out for you.
    • Silveirinha
    • By Silveirinha 11th Sep 19, 12:59 PM
    • 10 Posts
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    Silveirinha
    Thank you for the advice. I think I will look into this suggestion for sure. Hopefully being aged nearly 50 wont go against me .
    • D_M_E
    • By D_M_E 11th Sep 19, 2:00 PM
    • 2,671 Posts
    • 72,478 Thanks
    D_M_E
    Your opening post gives the impression that the loan was joint, in both your names.

    However, following posts give the impression that it's only in your name - which is correct?

    If it's joint and he is still named on the mortgage/property deeds then there's not much you can do except either sell up and clear it - for which you will need his consent or probably a court order - or stop paying and let the loan company take possession and sell.

    Your other option is either bankruptcy - if you take this route he will be chased for payment if it's a joint loan, pity you don't know where he is if it is, you could pass his details on once you manage to find him.

    You need to talk to Stepchange and explore your options and see what they can come up with.

    You also need to very carefully read the loan contract and see exactly what it says about charges for missed payments and work out if they have kept to their side of what you signed up to.

    Also, have they been sending you an annual statement which shows what charges have been applied?
    • Silveirinha
    • By Silveirinha 11th Sep 19, 5:03 PM
    • 10 Posts
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    Silveirinha
    Thank you. Some sound advice there. Unfortunately its joint. But I am definitely going to start with speaking to step change. My first mortgage is up to date and not in arrears . I have made sure of that. Seems a shame to have to lose the house that my kids have lived in since they were born. Fingers crossed it wont come to that
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