Hi

I am probably a bit late to add to this and apologies if this sounds like i have repeated other comments.

CCA is a regulated loan which only comes into effect for amounts under £25000. From April 2008 the FSA have abolished this limit and all secured loans will be regulated with transparency regarding early settlement. If you have taken a loan for more than £25000 you will probably find that you have an unregulated agreement. In which case the lender can set penalties in place for early redemption. This can be anything up to 8% of the balance within a fixed period of usually up 6- 8 years.

First plus (I think) charged 6%. Picture are the thereabouts the same. Some lenders charge 6%, decreasing 1% each year you have the loan. The terms of this should be on the contract you signed or can be available from your lender.

As for increasing redemptions figures, this does sound odd. If you have been maintaining your payments even with the interest rate rises, your payments should reflect these changes and therefore you should be reducing the balance. If you have missed payments this can be a different story. Penalty interest and late payment charges can be applied to the loan and if not cleared they will accrue further interest.

I hope this helps and sorry if not.

I had a researcher contact me on the 3rd March, and again on the 5th March asking about the background to my complaint.

They said they would come back to me in due course - nothing yet.

Any reply from watchdog yet Carefree ?

Starless

StarlessNight:

i would love to do that ... but i cant afford to keep making the payments for the next year until it pays out. Am having to sell my house to get out of the situation. Have just got the letter showing they have calculated it on the r78 rule .. whatever that is. Guess Im basically screwed.

as an aside, i read a questionaire about the mis selling of the PPI, what does it mean when they talk about having an employer scheme that could cover you ? I get paid sick from work, is that it ?

ty

sick pay is just that, sick pay. by the sounds of it, this employer scheme is a contributory scheme that would cover your full salary if you went on long term sick. dont take that as a given mind coz i dont know the exacts of that product.

Dont get mis-led by the sick pay being an insurance, it isnt.

i would love to do that ... but i cant afford to keep making the payments for the next year until it pays out. Am having to sell my house to get out of the situation. Have just got the letter showing they have calculated it on the r78 rule .. whatever that is. Guess Im basically screwed.

as an aside, i read a questionaire about the mis selling of the PPI, what does it mean when they talk about having an employer scheme that could cover you ? I get paid sick from work, is that it ?

ty

StarlessNight:yes i do and the redemption shows about £100 refund. COuld i still cancell it at this stage and get more back ? can i insist on a porportional amount refunded ?

yeah you can still cancel it, although the rebate is non-proportional and they wont back date it as its up to you to cancel it if you no longer need/want it. saying that, your fairy close to the cash back date aren't you? if so, take the rebate, apply it to the loan and have a reduced term.

StarlessNight:

Dan

the loan is only 4 years old .... or thereabouts. Could the old PPI be the thing thats affecting it ? Or the inceased interest rate ? even tho my payments have gone up and up and up ! Am totally dishearted by the figure going up since i asked them 2 years ago, but they insist they are right and i really dont have the knowledge to tell any difference even tho every bone in my body is screaming its wrong!!!

How do i find out what rule they are using ? and what do i do then?

did you have PPP?
have you cancelled it?

Dan

the loan is only 4 years old .... or thereabouts. Could the old PPI be the thing thats affecting it ? Or the inceased interest rate ? even tho my payments have gone up and up and up ! Am totally dishearted by the figure going up since i asked them 2 years ago, but they insist they are right and i really dont have the knowledge to tell any difference even tho every bone in my body is screaming its wrong!!!

How do i find out what rule they are using ? and what do i do then?

Dan_B:

StarlessNight:

The redemption figure on my loan has gone up by approx 3k in 2 years ... how on earth the expect me to actually pay the thing off if my payments arent even clearing the interest is anyones guess.

WHAT....if the redemption figure is going up, they must be using the rule of 78, which is not really allowed these days. What year did you take out the loan and sign the agreement?

they can still use the R78 calculation if the loan was paid out pre 2005, or maybe even may 2005. its all within the CCA guidelines on early settlement.

failing that, ask for a settlement breakdown and that tells you exactly in writing what settlement method they use.

StarlessNight:

Thanks Carefree, i definitely agree.

The redemption figure on my loan has gone up by approx 3k in 2 years ... how on earth the expect me to actually pay the thing off if my payments arent even clearing the interest is anyones guess. Have the house on the market to try to get rid of the thing, but will still be in negative equity. Feeling totally helpless i can tell you, so any small thing that will help me (and others) get out of the situation im up for.

Apparently FP will give me an unsecured loan to pay off any negative equity, is that right? or should I avoid even that with a barge pole and try a more reputable place for the loan ?

Any and all help much appreciated.

yeah the unsecured loan or shortfall loan as its known as is perfectly right. They retain the same terms and conditions as the secured loan, but without actually having a charge over your house.

The interest rate on that loan is generally the same as what your currently on with the secured loan and is still variable.