GE Money home lending

[Cub]

I tooks a secured variable apr loan out in 2004 , the first payment was September 04 and final payment August 2009 (60 payments of £597.27) In April I asked for a settlement figure and confirmation of the last payment date , the balance on the account was £3,199.77. With charges early settlement etc it would come to £3,451.81. I decided that due to the loan only having 5 payments I would not settle early (wished that I had). they confirmed the end of loan date of August 2009.

 

the last payment was taken and I cancelled the direct debit. In September I had a letter from GE saying the direct debit was returned , mandate cancelled..

 

They now tell me that there are 2 more payments totalling an extra £900+

and they say it for interest changes that they felt were too small to increase the monthly payments so left them as was.

 

I have raised a complaint, written and will take it to the FSA.

 

either the settlement figure was wrong or the extra interest required was BOTH can't be right.

 

Had I settled it would have cost me £250 in charges , now I'm faced with finding an additional £900.

 

They are allowed to change the number of payments but they should have written to me. How can I be sure if I'm not being overcharged , what do I do next ??

 

Cub

[Guest Old_andrew2018]

Bump

[Bizzimum]

Did you always pay the same monthly payment even though your interest rate was variable? It sound like the £900 is some kind of balloon payment. If I had let my loan run it's course I was looking at a £17000 shortfall. That was after 5 years of a 15 year loan - I don't want to think about what it might have ended up as!

[Cub]

Yep , the same rate was paid , they never told me their rate was going up or down. no warning that they were extending the number of payments.

 

just on the phone now to get an update of my verbal complaint and was told all that happens is a note is made ..

 

 

Cub

[Bizzimum]

Sounds like your loan is like mine. They gave me a right load of carp about how their base rate is published regularly and that I was supposed to keep track of it myself:rolleyes:. Mind you, I'm not sure how my rate related to the base rate, but that's another story. This would seem to be a massively unfair contract term and I'm waiting to see how the Firstplussers (who are in a worse position re their interest rates) get on and then I'm going on the attack.

I guess you were only informed of your interest rate, retrospectively, on your annual statement?

I started writing a letter of complaint about what I'd been told, but it sounded so ridiculous I never got round to sending it.

[Cub]

I got the same today , its my fault that they never sent me warnings that there was going to be a shortfall, GE told me they were investigating via their complaints procedure , the loan was originally with First National. It gave me a little satisfaction to tell them that they had failed their side of the T&C as I quoted to them from my copy

 

I can understand the reasons for maintaining a fixed payment for the duration of the loan, but having read other stories of GE overcharging I can't trust them

 

 

Cub

[Bizzimum]

This was my thread when I originally worked out the implications of my loan, which, incidentally, was also taken out with First National.

http://www.consumeractiongroup.co.uk/forum/mortgages-secured-loans/197826-ge-money-can-they.html

I am not going to let the matter drop. Operating a loan in this manner can in no way be acceptable.

BTW did you use a broker and if so which one?

We can't be the only people with loans that operate on this arrangement and I reckon many people haven't realised what's happening yet.

[Cub]

I did use a broker , Norton Finance

 

cub

[Bizzimum]

Hmm. Another of the companies that has had a "special" relationship with GE, I believe.

Have you tried SARing them? No doubt they received a sustantial commission that they forgot to mention to you, and I bet they didn't explain the impact of the fixed payment/variable interest rate.

 

http://gemoney.co.uk/en/loans/index.html

Edited September 18, 2009 by Bizzimum
Link added