Secured Loan converted to unsecured

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  • Shakin_Steve
    Shakin_Steve Posts: 2,701 Forumite
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    To be honest, I'm surprised they let you sell the house without satisfying the debt. I can't see how that makes business sense at all.
    I came into this world with nothing and I've got most of it left.
  • diggingdude
    diggingdude Posts: 2,445 Forumite
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    You can't get out of your debt this way
    An answer isn't spam just because you don't like it......
  • fatbelly
    fatbelly Posts: 20,492 Forumite
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    Unsecured&confused wrote: »
    The house was sold in March 2015 and Idem removed their charge on it at that point. We have been making regular monthly repayments (interest free!) ever since. But are trying to find a light at the end of the tunnel and move on. We just don't feel we can trust them.
    Seems to me you've done a great deal. You've sold your house even though it was in negative equity, you've converted secured debt to unsecured (it's the other way around that causes problems) and you are repaying interest-free.

    I'm not sure what you suspect that they are doing, that means you don't trust them.
  • SnowTiger
    SnowTiger Posts: 4,458 Forumite
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    OP created a similar thread here about a year ago.

    https://www.idemservicing.co.uk/:
    Idem Servicing is a trading style of Paragon Finance PLC which is authorised and regulated by the Financial Conduct Authority.
    Registered office 51 Homer Road Solihull West Midlands B91 3QJ Registered number 01917566

    OP asked: '...are they legally obliged to give you a new loan agreement? Surely the original terms no longer apply, as the loan is no longer secured?'

    Looking at Paragon Finance's FCA's page it appears it's, basically, an administrator and collector of debt; and doesn't have permission to make new loans.

    I'd guess that's why they won't give the OP the new loan agreement they want.

    Even if they could (and wanted to), what would happen if the OP didn't meet the requirements for a new loan? Loan wiped or, if they did lend anyway, accusations of irresponsible lending this time next year?

    OP broke loan agreement. Owner of debt has bent over backwards to accommodate them.
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