Uncertain

[pezman65]

Hi everyone, just joined this site and looking round to get a feel for it and for the first time in many years I feel I have hope. I am 62yrs of age and since the end of 1999 after developing a heart condition that forced me to resign from a very stressful job as a senior social worker in child protection I started to get behind with my "up till them" perfect credit rating. I had a loan with "universal credit" for £5000 which was taken out in early 1998 for home improvements, this company was taken over by "Paragon finance" who informed me they were now dealing with this account. I fell behind with my payments in 2000 during my time in hospital and a company called Alexander Rose negotiated a reduced monthly payment with all my creditors including Paragon Finance. In March 2000 they agreed over the phone to freeze interest, they sent me a letter requesting I sign a new direct mandate for the reduced amount and promised that no arrears would be added to the account. This went on until 2009 with no missed payments. In 2009 they wrote to me to inform me that interest had been in place since the inception of the loan and I now owed them £22,345. I have written to them to explain what happened but they don't want to know. I am only on a pension and can afford the monthly payments of £10.60 but to pay off £20,000 plus is impossible.I am so worried that when I die they will come after my wife and she may loose our house. Can anyone suggest a way this can be managed. I have put the details below, many thanks Pezman.

Type of account: unsecured personal loan

Date commenced: 1999

Approx balance: £22.345 should be £1800

Date last paid: last full payment of £127 paid in Oct 1999 but reduced payment of £10.60 up to date at this time

Are you on arrangement or not paying: paying reduced amount of £10.60, I have cancelled the Sept payment.

Status: up to date with the reduced payment apart from Sept which I have cancelled

Account owner: Original with Universal Credit, Paragon finance bought them out in 1999.

Thanks Pezman

[SXGuy]

Re: Uncertain

Hiya, someone with more knoweldge will be around soon to answer your questions.

But first thing, your debts are NOT your wifes. So please relax and get that idea out of your head straight away.

Creditors can and do try it on when a partner dies, but a short swift "go away" letter usually stops them. Reason being, a lot of people think they have to pay the debt back, and do. Truth is, they do not.

Please wait for someone with more knowledge to advise you on what to do next.

[mgfboy]

Re: Uncertain

HI

Was the original loan secured on your property?

[pezman65]

Re: Uncertain

No, it was an unsecured loan but I understand there have been occasions when the creditors have applied to the courts for a charging order and obtained an attachment to the house, Cheers Pez

[SaltnVinegar]

Re: Uncertain

Hi Pezman - welcome to AAD

I fell behind with my payments in 2000 during my time in hospital and a company called Alexander Rose negotiated a reduced monthly payment with all my creditors including Paragon Finance. In March 2000 they agreed over the phone to freeze interest, they sent me a letter requesting I sign a new direct mandate for the reduced amount and promised that no arrears would be added to the account.

This is the crucial bit - who was it that agreed they would freeze interest?

Alexander Rose or Paragon Finance?

Do you still have the letter stating that no arrears would be added to the account?

If so, what is the exact wording of the letter (but leave out any personal identifying bits).

Best
SnV

[PriorityOne]

Re: Uncertain

I fell behind with my payments in 2000 during my time in hospital and a company called Alexander Rose negotiated a reduced monthly payment with all my creditors including Paragon Finance. In March 2000 they agreed over the phone to freeze interest, they sent me a letter requesting I sign a new direct mandate for the reduced amount and promised that no arrears would be added to the account. This went on until 2009 with no missed payments. In 2009 they wrote to me to inform me that interest had been in place since the inception of the loan and I now owed them £22,345.

Are you still with this Alexander Rose outfit? If so, cancel any direct debit payment currently going out to them. Direct debits are a bad idea anyway, since the amount can be adjusted by the collecting company.

Have you still got copies of letters or other documents showing they had agreed to freeze interest back in 2000?

A CCA request also needs to go off by rec. delivery to the company currently chasing you for money. If there's a CCJ in place, they'll be quick to say so.... but I very much doubt it. The link is here:

http://www.all-about-debt.co.uk/temp...lity/s1-t1.php

It also seems that the interest-free arrangement took place over the phone and I'm concerned about the "direct mandate" that was signed following this conversation....

[SaltnVinegar]

Re: Uncertain

My concern is that it was the DMP company that said they would get interest and charges frozen.

Unfortunately we know enough people that have been promised that.....

I'm hoping that Pez has some paperwork we can work with

[Pixie]

Re: Uncertain

I'm hoping that Pez has some paperwork we can work with

Even if he hasn't, isn't there a strong chance that it could be UE given the start date?

EDIT: maybe not if there's a charge attached to the house. Sorry trying to multi-task too much

[SaltnVinegar]

Re: Uncertain

Even if he hasn't, isn't there a strong chance that it could be UE given the start date?

I'm hoping so

But if he has that other correspondence I'm hoping theres something we can do with that too to give more leverage.

[PriorityOne]

Re: Uncertain

Yes, that's why everything should be in writing. Of course, back in 2000, there weren't even consumer forums that I know of, so pezman wouldn't have been aware of this, but it's good to emphasize for future reference.

It's something I was brought up to do always.... but my Mum was the sort to kick butt in a letter and probably enjoyed writing them too....

Even if he hasn't, isn't there a strong chance that it could be UE given the start date?

That's what I'm thinking...

[Spent2much]

Re: Uncertain

There is nothing to suggest there is one, but it should be easy for Pezman to find out through the Land Registry. Trustonline would only have a record of CCJs issued over the last 6 years - if one was obtained in 98 or 2000 it wouldn't show but a charge would be recorded if there was one.

Also if a charge had been placed on the property then his wife would have received notification from the court or the land registry that it was being placed as i got one when hubby's credit card was made into a charge .

[vossy]

Re: Uncertain

There is nothing to suggest there is one, but it should be easy for Pezman to find out through the Land Registry. Trustonline would only have a record of CCJs issued over the last 6 years - if one was obtained in 98 or 2000 it wouldn't show but a charge would be recorded if there was one.

The mortgage company should also hold a record of any charges also, you could ask them - by letter of course.

[pezman65]

Re: Uncertain

Hi Guys and Galls, wow, what a fantastic response, thanks you all so much it is fantastic, I will attempt to answer the questions you raise in chronological order:

The loan is not secured on the property and there is no CCJ or charge on the house. The agreement to freeze the interest was verbal on the phone but I do still have the name of the person who agreed it and the date this was agreed, I also have a letter from the team leader as follows:

Dear Mr --------
Re account number: 123 4567
I am asking or our customers who currently pay by non automated methods to start making payments by standing order with effect from April 2000. As an incentive to change your payment method I can offer the following benefits once you are made 4 consecutive payments-
1. We will add your current arrears to your loan balance so that, going forward, provided you keep to all other terms of this letter you will be showing as having no arrears.
2. Reporting to the credit rating agencies that you have no arrears and that the agreed payment plan is being honoured.
3. Resetting the payment due to the new amount you have agreed to pay each month, so that you do not continue to accrue arrears in the future.

Your original terms and conditions will remain in force and I reserved the right to revisit your account periodically to agree revised payment schedules with you. Whilst you make your agreed monthly payments via standing order, however, your account will not register arrears.

I would strongly recommend that you take advantage of this opportunity to enhance both the smooth running of your loan account and your credit profile.

Yours sincerely: paragon Finance, this was signed by the team leader

I have had no contact with them until 2009 when they stated I owe them £20,000 plus.

I am prepared to do anything you suggest, again thank you so much for the support, I feel I have some control back in my life, instead of being at the whim and fancy of these people who can destroy you with a few words or letters and ignore everything you try to explain. Kind regards to everyone, Pezman x

[SaltnVinegar]

Re: Uncertain

Hi Pez

Its weasel words I think. Theres nothing there about freezing interest, just adding your default to the balance outstanding and not reporting arrears to the CRA's.

So basically they have allowed a 5k loan to continue accruing interest for the last 13 years, while you have been merrily paying a fixed amount agreed with your DMP provider, until it has reached the amount of 22k

So CCA route is probably the way to go here.

Are you still on the DMP? Do you have any other creditors?

Best
SnV

[SaltnVinegar]

Re: Uncertain

Hi Pez

Also is your mortgage in your name/wifes name or joint names? Depending on the answer this limits the options of your creditors.

Best
SnV