Secured Loan problem

[mart2k6]

I took out a loan with logbook loans about 5mths ago which secures the loan against the value of your car

I got a paying in book where i went to the bank each week and paid £30 and everything was going ok

I then became unemployed as I was doing agency work and was struggling to pay the £30 so I rang them and they said no problems we can drop the payments to £15 for 6 weeks to help you out and you can pay a little bit extra to pay off your arrears after the 6 weeks have passed and hopefully are back in work , which at the time sounded ok.

Then the trouble started ....

The 1st week i paid £15 i received a letter 3 days later stating that my account was in arrears and they had charged me £20 for sending the letter. With this i rang them again and said that nobody mentioned £20 and i was keeping to my side of the agreement , to which i was told dont worry about it , thats just the computer printing off a default letter and i havent been charged anything.

I was a little wary but decided ok if theres no arrears i havent got anything to complain about so left it. I started to receive these letters more frequent over the next few weeks but still kept in touch with them checking I wasnt being charged for the letters and wasnt in arrears, which they explained nothing to worry about at all.

This week had numerous missed calls on my phone by them and this morning received a letter stating

As you have failed to comply with the default Notice, we are confirming that the Agreement has been terminated as of 10th October 2006 and that the payment of the outstanding sum of £xx.xx is immediatley required.

Obviously rang them straight away , after explaining all the above he replied well no problem at all if you can pay normal payment this week , then you are goin to have to double your payments from next week. This is to pay the arrears off which include around 8 lots of £20 for the letters. I said no way am i goin to pay for the letters which he replied when the accounts completely paid up i can claim the letter charges back.

My question now being if they have stated the contract is terminated but over the phone say oh we can just pick up where we left off is that legal , and secondly why should i have to pay arrears which i dont technically owe

Any help on this confusing matter would be greatly appreciated

Thanks

[actionblusox]

hi i am having the same problems with them. except they have issued me with awbout 17 x GBP 20.00 letters.
i have had to up my loans (3 loans) to be able to afford and now cant afford again.
i am on incapacity benefit, when they offererd me a GBP 600.00 loan. they said to me that they were part of cash generator, which cash generator said they werent, they rung me and asked me to meet them in a hotel to process the loan thinking this was dodgy but i was deperate i filmed the meeting.

i contacted them a week later to say i wanted to pay off in full and use my rights to terminate, they said it was tough and that i only had 7 days to cancel,and that if i did want to cancel it i would have to pay 950.00, and if i didnt they would take my car worth 12,000.00 because he said that they now owned my car for that 600.00. i then took a loan out for 1,000.00 to pay this off and asked for them to send me the details of payment through which they never did, panicking they said consolidate my loans which had gone upto 2,300.00, i did this with a loan of 3,500.00 with a view of trying to pay it off earlier, i was that far in debt with them i didnt know what to do, my payments are 66.00 per week and i get 74.00 per week incapacity. and if i pay for the 4years i would be paying them back 13500.00 in total. i dont know what to do has i feel exploited because of my debt situation. i have contacted trading standards and have sent them details. can anyone suggest anything apart from calling me a fool which is what i feel.
thankyou.

[mart2k6]

Hi

That sounds bad news for me

But my point being if they sent me a letter sayin the Agreement was now termianted as of yesterday they surely cant say on the phone oh yes its our fault nevermind carry on paying

If the contracts terminated by them and they accepting liability of their mistake then at the moment i am under no legal contract as they have in regards to their letter already cancelled it

[actionblusox]

thats a very interesting point, vjr has some excellent views.

[mart2k6]

Anyone on here that can advise on this matter please

Thanks

[mart2k6]

Just need advice on whether the termination they put in writing and now they say oh just keep paying

If they terminated in writing dunno where that leaves me legally when they admit they made a mistake yet i have it in writing they have terminated the agreement