ge secured loan was £38000 now £43000

[not so goldengirl]

as above title says i took out a £38,000 secured loan have paid about 18 installments it was with a solicitor to try to probe that it was unenforceable due to the way it was distributed. When the case started they thought i had over an 80% chance of winning and any payments i made could not be claimed back so i stopped paying. Now due to a new court ruling they say i have less than a 50% chance of winning so are dropping the case. I now owe them 43,000 this is with interest and charges and interest on charges up to now they have not contacted me about resuming payments or paying the arrears. I am gutted to have lost however even more so that i owe them far more than i did.Any one else been in this position?

[not so goldengirl]

bump!!!!!!!!!!!!!!!!!!1

[Surfer01]

as above title says i took out a £38,000 secured loan have paid about 18 installments it was with a solicitor to try to probe that it was unenforceable due to the way it was distributed. When the case started they thought i had over an 80% chance of winning and any payments i made could not be claimed back so i stopped paying. Now due to a new court ruling they say i have less than a 50% chance of winning so are dropping the case. I now owe them 43,000 this is with interest and charges and interest on charges up to now they have not contacted me about resuming payments or paying the arrears. I am gutted to have lost however even more so that i owe them far more than i did.Any one else been in this position?

 

The solicitor obviously gave you incorrect advice right at the beginning as normally secured loans are locked down tight and there is no way of making them unenforeable as they do not fall under the CCA therefore unlikely could be "unenforceable".

Perhaps if you concentrate on the solcitor aspect and give more information on what transpired to enable the solicitor to say it may not be unenforceable will help CAG members to giove you better informed advice. Can we assume that you had to pay the solicitor fees and if so how much?

[not so goldengirl]

yes but got leagal aid and it was something to do with the way the agreement was written.

[zzharia]

The same thing happened to me , I have second secured lending with Ge Money , but the soliciter said because of new case law the chances of winning are low so they dropped the case , I received legal aid .

[not so goldengirl]

The same thing happened to me , I have second secured lending with Ge Money , but the soliciter said because of new case law the chances of winning are low so they dropped the case , I received legal aid .

 

Do you still have the loan?

[andrew1]

I would suspect this was to do with the solicitor believing these loans were Multiple Agreements which fell under s18 of the Consumer Credit Act. - They still may, BUT in January there was a case called Heath v Southern Pacific which was heard in the appeal court which lost and therefore most of these solicitors and claims companies dropped multiple agreements from their list of possible claims. That being as the appeal court holds higher authority than the County Court where most cases are heard and therefore the risks to solicitors is too high..

 

I can't go into this all here as it's too complex just now to explain, but if you search for the Heath cases on the forum and take a stroll through this thread you'll learn more. http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/171037-multiple-agreements-falling-within.html

 

Now the Heath case has applied to the Supreme court to be heard at appeal again soon, so don't give up and not every Multiple Agreement is dictated by Heath. It really comes down to exactly what happened in your own case compared to Heath Southern Pacific Mortgage Ltd v Heath [2009] EWCA Civ 1135 (05 November 2009)

 

Heath v Southern Pacific Mortgage Ltd [2009] EWHC 103 (Ch) (29 January 2009)

 

It's complex, but don't give up hope yet. Use your time exploring both the secret commissions your brokers may have been paid and the charges, but also start your threads and put up the full circumstances of your loan agreement.

 

a) When it was taken out.

 

b) How much for

 

c) What the loan was for

 

d) How the money was broken down into parts ( Paying off old loan / cash/?) brokers fees, admin, who was paid money by GE on your behalf, everything. (not names necessarily, but mtg arrears or previous 2nd charge loan etc)

 

Then we can look and see how your loan may have been looked at by the solicitors and we'll follow it from there.

 

One word of warning though. If you have a loan I would suggest you continue making the payments UNTIL a court says stop. Judges will assume if you have held payments back to challenge the agreement that it is a possibility you may lose and you have kept the money aside so will in any interim judgment make you pay your monthly installment along with a sizable

contribution to the arrears so be very careful how you stop paying as you will rarely be able to sustain that if you are struggling already with your payments.

 

Litigation can be costly, Finance companies can be ruthless and you WILL lose your home if you stop paying unless you are extremely astute and use the laws to prevent it, but do not rely on any old solicitor, even the judges do not understand the Consumer Credit Act and nothing is certain - believe me - I know from experience. Keep hope, keep learning and watching these threads, but keep paying.

 

[not so goldengirl]

well got to pay them £330 over the arrears this will leave me with virtually nothing and they say all the extra coming off the interest arrears!AM waiting for my next (second) job to start hopefully next week so i will manage.

[andrew1]

well got to pay them £330 over the arrears this will leave me with virtually nothing and they say all the extra coming off the interest arrears!AM waiting for my next (second) job to start hopefully next week so i will manage.

 

£300 over the normal payments? Who has arranged that for you?

[not so goldengirl]

they did said it would go to court if i did not pay it.

[andrew1]

they did said it would go to court if i did not pay it.

 

It's easy for me to say that's too much, but I'm not quite sure what to say to you on how to get this changed, short of going the court route and asking a judge to decide for you or getting CAB involved, but it does seem harsh. The mention of court and the costs button gets pushed, especially with the likes of GE. I'll give this some thought, but I am not sure what to say to you sadly. Sorry.

[not so goldengirl]

ok cheers it is an arrangement for three months!

[not so goldengirl]

well heres a new twist to the plot got two letters today one saying as i have not agreed to their payments they will take me to court in 15 days costing me £375. The next one dated one day earlier saying arrangement in place for the next three months and i will recieve no further charges so long as i pay on time? Dont quite know what to make of it all!

[andrew1]

well heres a new twist to the plot got two letters today one saying as i have not agreed to their payments they will take me to court in 15 days costing me £375. The next one dated one day earlier saying arrangement in place for the next three months and i will recieve no further charges so long as i pay on time? Dont quite know what to make of it all!

 

Send the copy of the arrangement letter to the person that sent you the 'going to court' letter and ask then to close their file. Make sure you recorded delivery it too...pain in the butt, but you need to do that.

[not so goldengirl]

is that becuse the wires have been crossed?

[andrew1]

is that becuse the wires have been crossed?

 

Well it looks as though the right hand doesn't know what the left is doing and you have two people doing things. One more aggressive than the other, so you need to silence the aggressor rather than the other way around.

[not so goldengirl]

will do hope it works still think the agreement needs challenging How on earth i can owe £7000 more than i borrowed three years ago is beyond me!

[not so goldengirl]

well got a phone call off them today to say they had not recieved my payment which i made tuesday checked with bank and it gone out and been paid to them apparently they will wait till tuesday for it to clear. They also set up the payments for two years at £838.39 so will see what happens. Now i would love to challenge at least the charges but darent in case they take me to court any ideas as to what will happen if i do?

[patrickq1]

well got a phone call off them today to say they had not recieved my payment which i made tuesday checked with bank and it gone out and been paid to them apparently they will wait till tuesday for it to clear. They also set up the payments for two years at £838.39 so will see what happens. Now i would love to challenge at least the charges but darent in case they take me to court any ideas as to what will happen if i do?

when they phone it is because they think you can be pushed around and treat you as an easy touch....

firstly YOU HAVE NOW TAKEN CONTROL, this is your own sanity and you are not going to be kicked around no more,firstly you send the HARRASSMENT LETTER you will find that in the how to section,secondly if you can only afford 200 per month not 200 on top of the agreed payments but 200 period then you write stating this as a fact send them a budget sheet of your costs etc and expenditure....if they are unhappy with this then let them take it to court a judge would tell them go take a run n jump as long as you can prove this is all you can afford,or for that matter if you could only afford 50.00 per month then thats all a judge would allow...go for it..dont be shoved around

[patrickq1]

well heres a new twist to the plot got two letters today one saying as i have not agreed to their payments they will take me to court in 15 days costing me £375. The next one dated one day earlier saying arrangement in place for the next three months and i will recieve no further charges so long as i pay on time? Dont quite know what to make of it all!

LET THEM CALL THEIR BLUFF THEY WOULD NT DARE GO TO COURT WHEN YOU ARE OFFERING PAYMENTS THAT YOU CAN AFFORD

[not so goldengirl]

thanks for that my payments are £520 which includes a payment towards charges the other £318 is toward my arrears. Now this does leave me with hardly anything a month left over would love to remortgage but hope one day to challenge the agreement.

[andrew1]

As discussed - [ATTACH]22242[/ATTACH]

 

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[zzharia]

I did continue making payments on my loan , and have managed to pay the arrears off, but I have been left with the charges which are in a separate account accruing interest. I contacted Ge money to see if I could set up a standing to pay the charges but because the account number is the same they could not guarantee that the amount I pay would go to reduce the charges ? . They said I could ring up and make a payment over the phone and specify I want the money to go the charges account but if its the same account how can they guarantee my money will be dispursed correctly ? Ge money make everything difficult !

[not so goldengirl]

i cannot for the life of me work out how they work but they rip people off thats for sure!