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Unregulate Paragon Secure Loan HEEELP


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In October 2003 we took out a secured loan with Paragon Personal Finance. We

were panicking and struggling to pay debts and they offered us a way out.

Our debts were spiraling out of control.

 

We initially borrowed £29,000 with £5000 added for payment protection

leaving a balance of £34,000. (we have a solicitor pursuing the mis sol PPI)

 

We have struggled to pay the monthly amount ever since.

 

I still have the original pay slips we submitted with our application and it

is now obvious based on our earnings that we would not be able to support

this loan long term along with the mortgage we were already paying, we made

it work on paper as a way out of our debt problems.

 

We currently have a suspended possession order, I have since discovered that we are not covered under the payment protection because my husband has been self employed for the last three years and when we took out the agreement he was employed.

 

Whenever the interest rates go up so do Paragon's but they never come down when the interest rates do.

 

Our original monthly repayments were £295 with an interest rate of 9.5%.

They currently stand at £418 with an APR of 12.858% with an extra £100 per month (making it £518) towards arrears.

 

When working out the affordability we calculated the current mortgage

payments along with CSA payment and general utility bills out of our

outgoings, when including Paragons payment in this we were left with approx £153 per month to feed the three of us (a son who was 2 at the time), run the family car, dental bills, and to clothe our child and any other day to day living expenses.

 

I accept that we signed the paperwork and said we could pay but at the time we were in a desperate situation and I feel that Paragon saw that and took advantage of us at that time. Is there anything i can o, i am getting to the stage where i want to han them the keys to my house an say just get on with it as i dont know how much more we can take

 

Please can anyone give me some avice

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