Author Topic: Arrears has caused my debt to be more than it was at the beginning. Please help!  (Read 1547 times)

jonesqe

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I moved and changed bank accounts and never got round to setting up all my direct debits with my new bank. As I was working all kinds of shifts I either never got time to visit the bank or simply forgot how quickly time was passing. Although I was remembering to pay my loan I hadnt realised that the payments were getting there late all the time and hadnt taken the transfer period into consideration. Before all this happened I had lost my previous job and couldnt make the payments at all. I had explained this to the bank I had my loan with but they still charged me arrears.
Just a few weeks ago my accout was frozen because someone had tried to access it, this resulted in my payment not being made. Even though I explaied this to the bank I had the loan with, they still procedded to refer my debt to a debt collection agency who I am now waiting for a letter from. In the meantime the arrears interest on my loan has left me owing more than I had initially borrowed despite the fact I had been making regular payments.
Is there anything I can do to claim some of this interest back or reduce the balance in anyway. I really dont nknow how I can move on from this at the moment.
 :(

jonesqe

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  • Posts: 3

I moved and changed bank accounts and never got round to setting up all my direct debits with my new bank. As I was working all kinds of shifts I either never got time to visit the bank or simply forgot how quickly time was passing. Although I was remembering to pay my loan I hadnt realised that the payments were getting there late all the time and hadnt taken the transfer period into consideration. Before all this happened I had lost my previous job and couldnt make the payments at all. I had explained this to the bank I had my loan with but they still charged me arrears.
Just a few weeks ago my accout was frozen because someone had tried to access it, this resulted in my payment not being made. Even though I explaied this to the bank I had the loan with, they still procedded to refer my debt to a debt collection agency who I am now waiting for a letter from. In the meantime the arrears interest on my loan has left me owing more than I had initially borrowed despite the fact I had been making regular payments.
Is there anything I can do to claim some of this interest back or reduce the balance in anyway. I really dont know how I can move on from this at the moment.
 :(

AshleyPark

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  • Posts: 63
Hi Jonesqe,
 
Usually a lender will give you a calender month to make the payment before classing it as an arrear.
 
In order for me to understand to your situation a little better can i ask you the following:
 
Is your current account with the same company as the loan?
 
How much do you owe in arrears at present?
 
Lee
Ashley Park Debt Solutions Ltd
 http://www.ashleypa

jonesqe

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  • Posts: 3
Hi Lee
 
No my loan is with a different bank than the one I bank with. I currently owe £1,900 in arrears. Originally I borrowed £3,500 3 years ago and am now owing £5,500 and possibly more as it is showing the £1,900 on the right hand side of the statement. i don't know if this includes the arrears or if this is to be added on.

AshleyPark

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  • Posts: 63
Hi Jonesqe,
 
Unfortunately with regards the loan the lender is only adhering to the terms set out in the credit agreement. Unless you can prove that this is not the case.  From this point forward your main concern is to stop the situation getting any worse. 

Have you tried making an appointment with the CAB. Please be aware that this is a government backed service that in today's financial climate is very busy as you can imagine so there may be a waiting list.
 
At this point a financial management plan may be a good option to consider. Although many debt management companies may advertise that they will stop all further charges and interest this is not always the case as it comes down to the stance of the particular lender and the competency of the debt management company.
 
I would always recommend speaking to at least two companies as they should all tell you pretty much the same and you can quite easily obtain some information over the telephone without paying any upfront fees.
 
Hope this helps
 
Lee
Ashley Park Debt Solutions Ltd
 http://www.ashleypa

juna28385

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This is an interesting discussion. thank you for sharing




Steven Jackson

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  • Posts: 281
Hello Jonesqe
 
Have you been able to make any progress with your debt problem or recieved contact from the debt collecting company? My advise is to start making your normal payment on time. Given you borrowed £3500, it is not unusual to owe far more than this in total if you include the interest charges and payment protection of you took this out as well. Unfortunately it looks like the late payment charges have also been added to your account. You will have to pay this as well so it is probably a good idea to make an overpayment each month. If this is not possible, perhaps looking at a debt management solution as Lee has suggested is a good option for you.
Debt Expert
ivainformation.com