Jump to content


Please note that this topic has not had any new posts for the last 4884 days.

If you are trying to post a different story then you should start your own new thread. Posting on this thread is likely to mean that you won't get the help and advice that you need.

If you are trying to post information which is relevant to the story in this thread then please flag it up to the site team and they will allow you to post.

Thank you

Recommended Posts

Hi there,

 

I've just read quite a few threads regarding Personal Finance and I have a similar story.

 

We took out a loan in 1992 for £10,000 but due to various circumstances (redundancy/ maternity leave) we are paying them a reduced payment through CCCS. The original loan was with Universal Credit and it included ‘Payment protection’, In 1996 my husband was made redundant so we only paid £10 per month and the interest we had paid for £5649 was credited to our account but then UC was taken over by Paragon Finance who added this interest back to our account!

 

We never received a statement for years so I requested one recently and I feel sick because it shows that we have now paid them a total of over £26,000 and they say that there is still an outstanding balance due of £11,437.86. I feel they have had more than enough money out of us and would like to know if there's any legal way we can stop paying these loan sharks!

 

CCCS have told me that there are lots of people they are dealing with in the same boat as me and they are trying to see if Paragon can come to some sort of agreement to reduce the loan but I haven't heard anything yet. This was 3 weeks ago.

 

Has anybody won a battle against this atrocious company?

Link to post
Share on other sites

Wolfhead, you do know how to pick them.:D

Apparently both these companies write suspect agreements-so if the agreement has been

wrongly constructed, the debt may be unenforceable.

Send a CCA to Paragon to obtain the original agreement and post it here

to see whether it conforms.

Two other points-

1] were you able to claim on the PPI? And have you been able to claim since?

2] not sure that Paragon can reverse the decision of the original creditor

in relation to the treatment of the interest. However that may be academic if the contract does not comply with the CCA 1974.

Link to post
Share on other sites

A CCA request is when you ask the creditor for a copy of the original loan agreement, you can find it here:

http://www.consumeractiongroup.co.uk/forum/general-debt/20758-creditors-dcas-letter-templates.html#post162367

You need to include a £1 postal order to cover the maximum statutory fee, and make sure it's sent by recorded delivery.

 

Good luck, Dave.

If my post was helpful don't forget to click the star!

Advice is offered freely, without liability and without prejudice.

If in any doubt professional legal advice should be sought.

 

I do not profess to be in any way legally trained, I am a big

oily truck driver and all I know has been learned within the

Consumer Action Group.

 

FAQ's

http://www.consumeractiongroup.co.uk/forum/faqs-please-read-these/

 

Trying to stop smoking?

http://www.consumeractiongroup.co.uk/forum/give-up-smoking-here/

 

A dummies guide to the forums

http://www.consumeractiongroup.co.uk/forum/welcome-consumer-forums/107001-how-do-i-dummies.html

--

KEEP WILDLIFE IN THE WILD

http://www.bornfree.org.uk

BORN FREE FOUNDATION

--

Link to post
Share on other sites

Hi thanks for your replies.

 

I always keep documents for everything so I do have the original loan agreement which I have scanned and I'm trying to upload but I keep getting an error saying the upload has failed (I have two pdf files which are 2 mb each). Any ideas of how I can attach the files?

 

We have only claimed for PPI the once (while we were paying full amounts) when my husband got made redundant. Since going on the reduce payments through CCCS we haven't claimed on it.

 

I really cannot believe that we still owe them more than our original loan from 15 years ago! It's crazy because looking at their website now to take a loan of £10000 payable over 10 years would come to a total of approx. £15,500.

 

Anyway, any information regarding the agreement would be greatly appreciated.

 

D.

Link to post
Share on other sites

Wolfhead. I am in exactly the same boat. It seems that this is a common trend.

 

Lookinforinfo, what would make an agreement unenforceable? I requested a copy of my old Universal Agreement and it looked very basic (plus my name was spelt incorrectly on it).

Link to post
Share on other sites

Wolfhead, I am not sure why you are having the upload error but I am sure

there are others who will give you advice.

 

Did you not claim on the PPI because you felt they wouldn't pay because of the reduced payments, or they told you they wouldn't pay. Depends how the

lender works when they receive smaller payments. They may pay the same

correct monthly premium to keep your PPI in force, or reduve the premium

pro tata to what you are paying the lender, or they may cancel the whole policy I guess. Might be worthwhile asking.

 

Trouble with interest is that if you are paying a small monthly amount, but the lender is still charging interest, the debt will rise every month and can

double every five years or so depending on the rate charged-and they may be

charging a higher rate as you are not making the contracted payments.

If you look at our template letters -letter A letter B etc, you will find a few

that might help. EG ask to cease charging interest-

http://www.consumeractiongroup.co.uk/forum/site-questions-suggestions/53182-cant-find-what-youre.html

Link to post
Share on other sites

Martyn [and Wolfhead] there are several potential factors that can make a debt unenforceable should it have been written under the Consumer Credit Act.

1] the lender cannot produce the original agreement

2]the original loan amount is wrong [easily done when the interest is added up front, as is PPI and doubtless a Document charge, not to mention possibly

settling a previous loan or overdraft.

3] the APR on the OA is wrong ie the total cost of the loan divided by the monthly payment does not equate to the APR rate charged.

4] if any of the prescribed terms are missing eg amount of loan, total amount

of credit , the APR, your signature, the lenders signature etc

5] occasionally extortionate credit can be judged as unenforceable.

 

There are other factors that can cause contracts to be voided, but my grey

cells are struggling to think of more at the moment.

Link to post
Share on other sites

Hi lookinforinfo,

 

I thought I said this on a previous message but Paragon did lower the interest rate in 2001 to 7% (they wouldn't go any lower than this). I didn't think we could claim PPI since starting the reduced payment. Anyway, we both now work full-time so I'm not sure we can claim. I think I'll write to them and ask them about it anyway.

 

Your point below

 

"3] the APR on the OA is wrong ie the total cost of the loan divided by the monthly payment does not equate to the APR rate charged."

 

On the agreement form it says APR = 28.9%.

 

Our total loan was for £11075 (inc. 1075 PPI) and original monthly payment was £257.43 so 11075/257.43 = 43%. Is this what you mean by the APR not equating?

 

Having paid over £26,000 for a £10,000 loan and still owing £11,400 is wrong and I would like to know who I can write to to say enough is enough and stop paying them. I just don't know where to begin. Any suggestions?

 

 

I still can't upload my two 2.5mb pdf files.

Link to post
Share on other sites

To get anywhere near the APR figure you would need to use the formula

I=P.T.R/100 not dividing the loan by the monthly premium. What your sum says is that it will take 34 months to pay off your loan.

So I think you may have one of your figures wrong Wolfhead since 34 months is a strange length of time to use. Thirty six months I could accept but thirty

four?

 

Yes you did say that Paragon reduced the interest rate, but that would still come to more than £700 a year at £10,000, and your total debt, I assume,

would have been more than that if they added the interest and PPI on to

the front of the loan.

You may even have been charged interest on the interest.

Link to post
Share on other sites
Probably something to do with the file size. Try reducing it by as much as possible either via Acrobat or Photoshop.

 

MM

 

Or scan it as a .jpg and use photobucket, use the url-here code within the body of a post and it will autopost onto your message.

If my post was helpful don't forget to click the star!

Advice is offered freely, without liability and without prejudice.

If in any doubt professional legal advice should be sought.

 

I do not profess to be in any way legally trained, I am a big

oily truck driver and all I know has been learned within the

Consumer Action Group.

 

FAQ's

http://www.consumeractiongroup.co.uk/forum/faqs-please-read-these/

 

Trying to stop smoking?

http://www.consumeractiongroup.co.uk/forum/give-up-smoking-here/

 

A dummies guide to the forums

http://www.consumeractiongroup.co.uk/forum/welcome-consumer-forums/107001-how-do-i-dummies.html

--

KEEP WILDLIFE IN THE WILD

http://www.bornfree.org.uk

BORN FREE FOUNDATION

--

Link to post
Share on other sites
  • 3 months later...

Hi there,

 

I haven't replied to this thread for a while because I was hoping CCCS could sort us out but they haven't been much help at all. They are happy to sort out a DMP for you but when it comes to dealing with nitty gritty problems they don't do much. A lesson I've now learnt!

 

We have asked Paragon for a CCA (sent recorded delivery on 3rd July with £1 PO included and signed for by Paragon on 5th July). We haven't heard from them yet. Our payment is made through CCCS so can we now stop that payment until we have heard from them without them threatening us or anything?

 

Thanks

Link to post
Share on other sites
  • Recently Browsing   0 Caggers

    No registered users viewing this page.


  • Have we helped you ...?


×
×
  • Create New...