Urgent help requested with a secured Paragon Finance Loan

[preggers]

Forgive me if this is in the wrong place - feel free to move it if so

 

Three years ago my sister and her husband - in the depths of debt despair - took out a secured loan of £120,000 over 20 yrs with Paragon.

 

They have been paying back a crippling sum of £998 per month and have found it impossible to meet other basic needs such as electricity/food for their four children etc and have suffered severe stress- they are both on medication from the GP.

 

This is how I found out about it as my brother in law has ended up in hospital.

 

Now - putting aside the madness of taking on a secured loan for this much on one wage with four children to clothe and feed - I need to help her.

 

They have been phoning and harassing her asking for higher payments - I have told her to ignore their threats but make a written record of when they do call

 

She has no paperwork relating to this loan - she applied online - they sent something out which she signed and returned without taking a copy, she has received no statements and doesnt know the rate of interest she is paying

 

She phoned to ask how much the loan was as of yesterday and was told it was 124,300 - when she queried this odd amount she was told it was 'the broker fee'

when she said she didnt have a broker she was told it was PPI - she never asked for PPI as I have drilled this much into her!!!

 

I have sent a SAR request by recorded delivery for her today and await that with interest but meanwhile is there anything else I can do?

Her next payment will be the end of June but it is crippling them so would she be within her rights to pay a lesser amount? it is not a direct debit payment but she phones up and pays by card.

 

They really are at breaking point and while I understand they have responsibility to repay what they owe this is going to send my brother in law to an early grave if I dont help them - with the help of you good people and this fantastic site!!

 

Any help/advice or suggestion where to turn next are very gratefully received as always!! xx

[preggers]

Hi mods - if this is in the wrong place - or might get a response placed elsewhere - would you be kind enough to move it for me?

many thanks

[42man]

How much in arrears are they ? And you have done the right thing in this instance to send off a SAR to them....it would be intriguing to know what the details ore on this...

[preggers]

thanks for your reply

 

they are not yet in arrears with this loan as they have managed the payments through extra work - this work is no longer available so unfortunately arrears are the next thing

 

I will certainly update once we get a reply - meanwhile does anyone think there is something else I could be doing? feel so sorry for them!!!

[42man]

I can't understand why they are asking for higher payments as they are not in arrears.....or is it a case that they have told the lender that they are unable to afford the repayments. I think the PPI issue will certainly help them. If a PPI policy is missold it can bring the whole agreement into question. However you really need some specialist advice from a lawyer about this. Let us know the results of the SAR...I imagine the PPI aspect is quite a significant amount for which you are fully entitled to have reclaim.

[42man]

What you may be able to do is get them to rewrite a new agreement less the PPI which may well bring the premiums down....if not then, they may not be able to reduce the monthly premiums BUT they would get a large cheque refunded...

[preggers]

Thank you for taking the time to reply

I will post again once I receive the SAR as I guess there is not much else I can do at the moment

Thanks again xx