Kensington NMortgage Co

[terracotta4]

Have only been told of this nightmare by a friend this week and don't have all the information yet. My friend's husband was referred to Kensington by Abbey National when he needed to borrow money to buy a truck for work. He borrowed £19,000.00 the payments were made for a long time until he was hospitalised for 3 months with Crohns disease. Since then they have made payments when the could they also fell in to arrears with their mortgage but this is now up to date. Kensington have been relentless in their pursuit of this couple - writing letter every week and the calls can only be described as menacing. He was offered money by his company to pay off the arrears but Kensington do not want this. Kensington went for a possession order in May this year - the offer was made again of a F&F - this was ignored. A further order was made for posession on 3rd September - again they would not accept the Full offer and have agreed to payment of £1000.00 on the 9th September then payments of £333.43 per month for god knows how long. I have seen the most recent letter and the interest charged is staggering on 3rd May the o/s amount was £13265.47 - on the 14th June £13,684.02 and on the 30th July this had risen to £14525.08. i am going to find out how much they have paid by requesting statements, but need advice on how to proceed.

[AndyOrch]

Hi terracotta and welcome to CAG

 

If you can check with your friend to see what type of agreement this is...HP/PL and rougly how many payments have been made against the initial amount.This can be done ny requesting a DSAR which can be found in the CAG templates library ...there is a fee of £10.00 send recorded delivery

 

Regards

 

Andy

[AndyOrch]

A copy of the agreement would also be useful.

[terracotta4]

Hi Andy,

 

She has brought some papers to me this afternoon that she has received - the loan was initially 19,0000 it looks (until full inspection) as though they have paid £11,000 - there is now £15.337.75 of charges and interest. The husband was led to believe that the figure they gave him of £14.976 on the 30th August was in Full and Final settlement of the amount - I now know from looking at the paperwork from the court that this is just for the interest and charges at that date. What does HP/ PL mean - I know the money was paid to them directly to go and buy the truck - it was definitely a secured loan and not a Second Mortgage. Also in the paperwork received today the amount given by the court is 333.43 then in the paperwork she received today it has been made clear that this amount is only to cover the arrears there is a further amount of 219.64 every month to cover the original loan.

 

I have told her that I think she should start to make the payments as agreed with the court as I think it is always better to fight from within if possible.

 

Best Wishes

[terracotta4]

Sorry Andy the figure should have read £19,000

[AndyOrch]

Thats we we need to know...hence we need to see the agreement...what type of loan.....you state is was a secured loan...not a second mortgage.HP is Hire Purchase P/L is personal Loan Im now assuming its neither.

[terracotta4]

Her husband is a lovely chap ( a salesman dream) but is totally burying his head - I asked for everything they had and apparently he ripped it all up in a temper tantrum. Can she request a copy of this along with a complete statement and get it before there is a court review of the case on the 9th October - which I am attending with her.

 

Regards

[AndyOrch]

Yes you need to use a section 77 request this can also been found in the Library letter N (assuming its covered by the CCA1974.)Enclose a £1 Postal Order print name on request.

[terracotta4]

I have that now Andy - will send it Monday morning - will advise as soon as it is returned.

 

Thanks again

[terracotta4]

Hi Andy - Just received all of the paperwork that Kensington have supplied - I am unable to scan this (have tried but to no avail) The bones of the agreement are as follows :

 

Fixed Sum Loan Agreement with a charge over their property.

Loan Amount £15,000 - Application Processing Fee 250.00 - Broker Fee £750.00 Total Loan Amount £16,000 - CHARGES : 14236.80

Interest Rate Currently 13.50 % - being variable Rate 6.00% plus a fixed Margin of 7.50 %

This was completed and signed by them both on 16/07/2007.

 

The covering letter from Kensington states the following :

 

Total sum paid under the agreement : £ 12358.79

Sums payable under the agreement which remains unpaid : £ 14,337.75

Total sum which is to become payable : £ 10,323.08

 

 

Regards

[AndyOrch]

What has the DSAR revealed with regards to charges and interest?

[terracotta4]

They never gave that information although this was what was requested - as their Court Hearing is on the 9th October there will not be time to get this if they send a further request.

Regards

[AndyOrch]

No but you can relay the request and that they are in default of your request...the hearing is this for a Return Order terracotta?

[terracotta4]

Its a review hearing - from the last judgment when they were told to pay £1000 - then the monthly payment of £333.43 to cover arrears and the further £200 + figure to cover their normal monthly payment all of which they did as she showed me proof and all payments were made on time, but they still received a default notice of £48.00 (solicitors costs) after the payments were made.

[AndyOrch]

Ok well I would just present the figures and the agreement to the DJ to preside....Im sure he will question and ask them to clarify 15K of charges.

[terracotta4]

Would a judge consider that the amount of interest charged was too high despite the fact that they signed the agreement - or is it always enforceable when a secured loan.

[AndyOrch]

Research Unfair Relationships CCA2006 amendments s140a.

 

http://www.legislation.gov.uk/ukpga/2006/14/contents

 

Regards

 

Andy