Secured Loan with Blackhorse - 3 years on and we got a shock!

[Dottieminstral]

We were struggling financially back in 2004 and were desperate - so we took out a secured loan with Black Horse Finance. We were told we should take the PPI because our credit rating was poor and it would help our application - we did it. The total we ended up taking out was £13,592 including the insurance (loan alone was £10,000). We have made regular payments for nearly 3 years now - with the exception of our 2 entitled payment breaks per year. This month I requested a settlement figure and to our amazement we were sent a figure of £13,688.27 - more than we had originally taken out! Black Horse have had 28 payments of £294 during the term of our loan. To say the least we are devastated. The statement shows that at more than one occasion we were over £14,000 - we don't understand what has happened and Black Horse just fobbed us off each time we called. Finally they relented and said that they will give us a 'concessionary rate' but won't disclose the amount to us yet - is this acceptable?? We have never claimed on the insurance even though one month we went to but we found the money to make the payment......what can we do??

Any advise would be welcome as we are due to pay them off on Monday!

[reidnet]

If you are in a possition to pay them off on Monday, I take it you mean pay off the whole loan etc, then I would still pay them off in Full. Then continue to fight with them over the mis-selling of the PPI etc

Good Luck

Ian

[Dottieminstral]

We will be in a position to pay it off completely. But I am not sure if we can fight the PPI if they are giving us a 'concessionary rate'? I would like to know what we would have paid off if we didn't have the PPI and also WHY we have never appeared to pay off anything despite paying nearly £300 a month!

[hellhasnofury]

Originally Posted by Dottieminstral

We will be in a position to pay it off completely. But I am not sure if we can fight the PPI if they are giving us a 'concessionary rate'? I would like to know what we would have paid off if we didn't have the PPI and also WHY we have never appeared to pay off anything despite paying nearly £300 a month!

Hello, I would personally listen to Reidnet, Once paid, its paid, then send a Subject Access Request Request get all of the information you need, and then hit them with the ppi mis=selling, and then let them argue the toss.

Do not believed for one moment that they are being good to you. They are probably trying to cover up, a cock-up on their behalf, giving you "a concessionary rate " which to my understanding means, other words for jesus, we have screwed up and best give them back a little bit of what we should not of had.

Don't have the wool pulled over your eyes again. They are not interested in you, only how much money the can get out of you.

Sorry to be so blunt, but it has to be said.

[reidnet]

I would ask them for a full breakdown of the settlement figure including any rebates etc for the PPI. Also I would ask them what method they use to calculate the settlement figure.

If the PPI as I suspect it will have been was a single premium policy, you will find that any refund will be very little compared to the actual cost of the policy, they will state that this is because the risk of claims for PPI is higher in the early years of the loan. As an example I was conned into paying £3400 for a 5Yr PPI policy (on a 15 yr loan), I paid the loand 3yrs, never missed a payment , never claimed on PPI etc.. When I settled the loan the amount of Refund I got was around £90. It is absoluately shocking how they get away with this, or maybe they are not getting away with so easy these days..I am fighting through the court system for the full Premium plus Interest on that one.

Over the period of the loan , In the early stages you Pay off more of the Interest charges than you do of the Capital amount and that is why when you settle the loan early you can end up owing more than you originally Borrow.

Even though they give you a consessionary rate, ask for a full breakdown, If they increase the amount of the refund for PPI, of course you can then continue to fight if you were mis-sold the policy, If you do continue to fight for a full refund plus interest you can simply deduct what they have paid back.

Good Luck

Ian

[reidnet]

Ahhh Sandra you type Quicker than Me does...lol

[hellhasnofury]

Originally Posted by reidnet

Ahhh Sandra you type Quicker than Me does...lol

You've gotta be quick to catch me, I am on this site morning noon and night I can,t help myself.

[Dottieminstral]

Thanks people. I have just spoken with the head office who do 'car insurance' only (??!) and they told me that this is what I should be paying:

Current balance: £12,171.40
With early repayment penalty (one month): £12,528.96
Minus interest rebate of: £2978.99 (approx)
Minus PPI for reminder of the term: £2,138.75 (approx)

Local branch who I have the contract with and who manage themselves and are audited regularly say:

Current Balance: £12,528.96
Settlement figure with 'consession': £10,940 (made of £783.77 rebate from early payment penalty and another £700 odd from something else which he skimmed over)

I was also told that I should consider myself lucky because there should be an additional ££7,666.26 to pay because that would have been the total of interest they would have had if my loan had gone full term.

Something just doesn't ring true here. When I got my statement I called and said that the £13,500 odd repayment figure given back in Jan was wrong and they agreed and said that they could 'knock off' about £3,000.

The head office don't seem to be able to do anything about it. The local branch who are a law unto themselves have now developed a threatening manner claiming that if I remove the PPI I will have more to pay back. I really don't know what to do or where to turn. I feel that I have been taken for a fool by some loan shark. I really could cry with frustration.

Edited to add: The lady in the call centre (head office said that if they were to take back their offer of £10,940 I should seek legal advise...gulp!

[hellhasnofury]

Originally Posted by Dottieminstral

Thanks people. I have just spoken with the head office who do 'car insurance' only (??!) and they told me that this is what I should be paying:

Current balance: £12,171.40
With early repayment penalty (one month): £12,528.96
Minus interest rebate of: £2978.99 (approx)
Minus PPI for reminder of the term: £2,138.75 (approx)

Local branch who I have the contract with and who manage themselves and are audited regularly say:

Current Balance: £12,528.96
Settlement figure with 'consession': £10,940 (made of £783.77 rebate from early payment penalty and another £700 odd from something else which he skimmed over)

I was also told that I should consider myself lucky because there should be an additional ££7,666.26 to pay because that would have been the total of interest they would have had if my loan had gone full term.

Something just doesn't ring true here. When I got my statement I called and said that the £13,500 odd repayment figure given back in Jan was wrong and they agreed and said that they could 'knock off' about £3,000.

The head office don't seem to be able to do anything about it. The local branch who are a law unto themselves have now developed a threatening manner claiming that if I remove the PPI I will have more to pay back. I really don't know what to do or where to turn. I feel that I have been taken for a fool by some loan shark. I really could cry with frustration.

Edited to add: The lady in the call centre (head office said that if they were to take back their offer of £10,940 I should seek legal advise...gulp!

Hello.

Don't fret and don't worry

It really sound like the right hand doesn't know what the left is doing.

The seeking of legal advise bit is a scaring tactic to shut you up and make you feel vunerable. You don't need it, you can do it yourself with the help of the ppi clan.

I am not a legal expert but As I stated before, if you are in a position to pay off the loan, do so, and that matter is taken care of. You will have had your consessionary rate.

Then send them your Subject Access Request (costs £10) get all the information you can get about this loan, all the figures and you will be able to tell if they add up or not. Then if you feel that you want to pursue the ppi bit, and the fact that the figures did not add up.then go for it. and if it has been mis-sold you will then get your money back. Don't even mention what you are up to on the telephone. Try to do all communication by letter and keep copies.

Please if you need help, just ask, we are all in the same boat, we just want justice to be done

[Dottieminstral]

Thanks Hellhasnofury and Reidnet - your information has been valuable. We are going to pay off the loan on Monday and I have the address for the complaints department to hand. I assume that that is going to be the right address for my request.

I was talking to my husband and he said that he recalls very clearly being told that we needed to take out the PPI because it was secured. When we took out the loan we were 24 and 22 and were very green about the whole thing.

Well I will certainly be back next week for some additional advise.

Also - when I called my local branch manager to cancel the PPI he asked me why I was doing it now and when I told him he said that it's your word against ours - and we will always win.......

[reidnet]

Originally Posted by Dottieminstral

when I called my local branch manager to cancel the PPI he asked me why I was doing it now and when I told him he said that it's your word against ours - and we will always win.......

Oh now that sounds like a bit of a challenge.. Sounds Like a bit of BullSh*t or should I say Horse Sh*t to me... Ahh but you must also remeber that they told you PPI was required as the loan was secured and we all no that is a load of crap.. So dont believe a word they say to you..

Ian

[gemspan]

Hi there

I just wanted to add that if you think sending a letter to the complaints department will help - it won't!!! Send it direct to the CEO of Black Horse. Even then, you will have to chase them at every turn.

I have just been offered a "concessionary" arrangement on a loan Ihave with them. I took a loan of £15,000 and they added £4500 in PPI. The settlement figure is around £20,000 even although I have made regular payments of £265 for a year. I had to claim the PPI when I was ill but it took 3 months to come through and BH had me down as a bad payer!!!!!

They have offered to give me a new loan at the concessionary rate with no PPI and I am going to take up that offer but I want a full refund of all the PPI and payments to the last loan so will be taking that further with the CEO.

Send it direct to the organ grinder - not the monkeys. The address is the same.

Good luck

Gemspan