@natwest_help agreed a tomlin order on a loan...can they then add 9yrs of outstanding interest?

[jason_mnm]

Hello everybody

 

I was in the branch of Nawest in the middle of 2008

and I was forced to take this loan and they offered me £20k

 

.I then found they have added PPI and

 

I was not told about the PPI.

 

I then cancelled PPI within 30 days.

 

However subsequent to that I started having financial problem and defaulted on these loan end of 2009.

 

I then started making payments through CCCS.

 

Everthing went fine.

 

However now I have found that the loan balance shows £34,000 though I have been paying more than £150 a month.

 

I then called Natwest and they said it includes the interest for next 10 years from Middle of 2008

with the capital amount £20,000.

 

However in the default letter that was issued in end of 2009

said the balance is £18,234 which should been correct balance

after payment of monthly payments for year and half till 2009.

 

Can you kindly let me know if Natwest can add interest for next 10 years on the loan

that has been defaulted and what should I do about this.

 

Your kind advice will be much appreciated.

[dx100uk]

is this the same loan?

 

the one with the tomlin order...

 

dx

[jason_mnm]

Thank DX..Yes you are right, same one.. You have good memory DX..

[slick132]

Hi Jason,

 

Was nothing said at the time of the Tomlin Order that confirmed the date by which the loan would be repaid if all agreed payments were made on time.

 

[jason_mnm]

It does not say anything about time limit.

..That time I was so paranoid and with all those debt stress

I have just taken the Natwest Offer without checking the balance..

 

Now can I go back and ask them why they have added interest while I have defaulted

and they should not have added the interest..

[slick132]

Do you have a recent statement of a/c from them to show what you've paid, and what they're adding in interest, each month.

 

It sounds like the debt is still increasing, so paying them each month like this is a waste of time. And that does not sound fair !

 

[dx100uk]

for sake of clarity to the story and previous advise

 

old & new threads merged here.

 

dx

[jason_mnm]

They have already added interest in the beginning of the loan for next 10 years in the statement as it was for 10 years term..

 

. so whatever I pay goes against capital and interest added.

 

Now my question is

 

are they allowed to add interest on defaulted loan.

 

Like MBNA never added interest upfront,

they added them every month and i paid them off

 

.. Even the default notice Natwest send had balance without interest.

. but the statements and Tomlin order they agreed included 10 years interest.

 

. I want to know if I can ask them to remove the interest please

 

if there is any law or bank rules which might say not to add interest when defaulted..

[dx100uk]

theres a big diff between credit cards and loans.

 

loans are front loaded with interest

 

credit cards are monthly.

 

as for if interest/charges should be stopped upon any credit being defaulted

 

that's the third time is recent days someone has asked this

and I don't know the source of where the miss leading info is coming from

 

but..

 

there is NO rule/guideline/law that states anywhere

that a creditor MUST stop interest or PENALTY charges once they have defaulted a credit agreement.

 

dx

[jason_mnm]

Does that mean I am stuffed!!!!. However I remember I have seen in many thread that interest should be frozen when loan are defaulted as per Bank regulations or OFT regulations..!!!

[dx100uk]

not that i'm aware of.

 

I think you are confusing terminated with defaulted.

 

dx

[citizenB]

Jason, do you have a copy of the loan please, if so.. can you post it up for us to see. Did you reclaim the Payment Protection Insurance ?

[sequenci]

loans are front loaded with interest

 

That practice should have stopped a very long time ago.

[AndyOrch]

Normal for the loan to be front loaded with the term interest (fixed loan)...you only get a rebate if you pay it off early.

 

The schedule within the Tomlin Order needs to be checked but I would assume its the full amount borrowed plus interest less payments.

[sequenci]

Am I mistaken that the CCA doesn't allow for that practice to happen anymore? I know with both the loans I have (Nationwide and Zopa) they charge it monthly. I guess it might depend on the lender? Not my area at all as you know

[AndyOrch]

All the Nastyvest and RBS I have seen Seq are drawn that way...credit + interest x term =total charge for credit.Very strange to get it over 10 yrs the norm is 7 max.

 

This should have been challenged (if unhappy) at the time of the Tomlin Draft.

[jason_mnm]

Thanks guys..I was so stressed and in panic at the time of tomlin order that I left it to my lawyer. PPI was added without my knowledge and I cancelled it later and did not pay any PPI.

 

I need to know if i can challenge the interest element now.. If so if there is any rules or law that I can refer to...

[AndyOrch]

I doubt very much because the interest was included at the time of the agreement and the Tomlin reflects the full value of the credit borrowed.