purple loansiGroup/GE Money Home Lending - charges court claim

[jmd1307]

Hi,

 

My husband and I took out a £6k loan, with £500 broker fee to Purple Loans.

The loan was originally from iGroup, who became GE Money Home Lending.

 

The Loan was taken out in Oct 2002 and was due to expire in October 2009.

 

During the course of the loan, we did experience some financial difficulty

(I wasn't working when we took the loan out)

and fell into some arrears periodically.

We always cleared the arrears.

 

After buring our head in the sand about this loan never ceasing to end,

In 2011 we entered into a verbal agreement,

and suggestion by GE Money,

to increase the monthly payment and that the loan would be 'clear in 4 years'

. No chance of that! We are in year 4 and still owe £4,880.

 

This is a secured loan, or I'd just stop paying.

 

Detailed below is what we have paid (the second line of data is from the expiry of the loan)

and been charged for up to 2013!

 

 

I still have 2 years worth of montly £150 payments to be added and additional interest and additional interest - SI (simple interest)

 

 

Credits Interest Additional Interest Additional Int - SI

10,916.45 4,684.44 4,245.56 22.41

6,397.80 3,374.03 345.56

 

 

 

We have also incurred the following charges during the 'term' of the loan.

 

Admin Fee Default Notice Solicitor Interim Litigation Referal Interest Adj Valuation Fee Debt Councilling

2,560.00 119.25 2,169.15 20.00 1.01 17.62 94.00

 

There were threats of court during the arrears, although there was only one occassion that it go to the court attendance stage.

 

I have been in touch with Citizens Advice, who passed me onto Nat'l Debt line. I have requested SAR from GE Money and have raised a complaint about unfair interest/admin charges with the Financial Ombudsman (as advise by Nat'l Debt Line).

 

At one point, we were paying £133 per month, with the remaining £1.24 contractual interest, but with a whopping £88 something for additional interest!!!

 

 

Any advice on where to go from here would be great.

 

Oh, also on an illegible part of the contract - the PPI wasn't selected - so can't claim that back.

 

Thanks

Edited April 8, 2015 by jmd1307

[dx100uk]

so reclaiming time then?

 

 

have you quantified the PENALTY charges using a spreadsheet.

[jmd1307]

I've detailed every charge in a spreadsheet - so far up to 2013.

 

Not sure if I can make a claim, or how to do it, as although the term of the loan expired in 2009 - we're still paying 6 years later!!

[NGEddie]

Maybe worth checking if the default notice is correctly written? Search for...a tale of a dodgy dn...on the forums

 

E

[jmd1307]

Will do - although the last default notice/fee received was 27/07/2008.

 

Thanks

[dx100uk]

matters not the loan is closed or out of its agreement time.

 

 

you can reclaim.

[jmd1307]

I'm waiting for SAR from GE Money and advice from Financial Ombudsman. Would I initiate the claim direct with GE Money?

 

Wondering also what I can claim back of the following charges:

 

Admin Fees £ 2,560.00

Default Notices £ 119.25

Solicitor Interim £ 2,169.15

Litigation Referal £ 20.00

Valuation Fee (??) £ 17.62

Debt Counselling £ 94.00 (x2 - never received!!)

Additional Interest £7,619.59 (plus 2 years worth to add when SAR received)

Additional Interest - SI £ 367.97 (plus 2 years worth to add when SAR received)

 

Also - would you claim compound interest on all of the ones you can claim?

 

Thanks

[dx100uk]

I'm waiting for SAR from GE Money and advice from Financial Ombudsman.- fill out the FOS CQ

http://www.financial-ombudsman.org.uk/publications/technical_notes/ppi.html

 

 

Would I initiate the claim direct with GE Money? - Ifroup we have had successes with them GE always wriggle

Wondering also what I can claim back of the following charges:

 

Admin Fees £ 2,560.00 - whats that?

Default Notices £ 119.25 - yes

Solicitor Interim £ 2,169.15 - if outside of court notification yes

Litigation Referal £ 20.00 if outside of court notification yes

Valuation Fee (??) £ 17.62 - no

Debt Counselling £ 94.00 (x2 - never received!!) - yes

Additional Interest £7,619.59 (plus 2 years worth to add when SAR received) - the sheet should do that for you

Additional Interest - SI £ 367.97 (plus 2 years worth to add when SAR received) - yes

 

Also - would you claim compound interest on all of the ones you can claim? yes CISHEET

Thanks

 

 

dx

[jmd1307]

Thanks for the response. The admin fees - totalling £2,560 - are the £30 and £40 per month charges for 'admin''.

 

I've compiled all of this onto the CISHEET - would I then submit it to them, expressing that I'd take it to court if unresolved?

 

Thanks

[dx100uk]

then you include the admin fess yes

 

 

as long as you've entered each fee on a new row on the date it occurred

then that's done

if you want to post it up please do.

 

 

you could threaten court but only if you are going to go through with it

 

 

I'd read around on that one with GE etc if I were you.....

[jmd1307]

All entered individually. Would I claim them separately for each of those listed above - or as a whole?

 

Also, is there a general letter template for this?

 

Will definitely do some reading around before mentioning court action.

 

Thanks

[dx100uk]

one sheet will do.

 

 

it must be a tidy sum I bet!

 

 

there are several example letters around

if you cant find one

i'll look later

 

 

dx

[jmd1307]

If it's calculated correctly, with their 13% pa interest -- as the compound interest rate, then yes! Tidy sum if they'll cough up!!

 

Would the letter be reference to 'unfair charges'?

 

Thanks for your help so far!

[jmd1307]

Looking at a summary that I have - some years we were charged 17% pa interest!!! Would I find an average to identify the compound interest to use in the CISHEET?

 

Thanks

[dx100uk]

yes avg is ok

[jmd1307]

Thanks!

[jmd1307]

Hi.

 

Managed to finish the CISHEET - which I've attached as a word doc - all personal info removed. I used 15% for the interest rate, as I only have some data where the interest from Nov 2008 - Sept 2009 fluctuated from 17.5% to 13% - so just took the average of that.

 

We have been charged a whopping £13,915 in charges for a £6k loan!! We have already made payments of £20,104! And owe £4,880!!

 

Anyway - looking foward to sending this to GE Money - maybe they'll also be dumbfounded by the extortionate charges and even more by the compound interest I would claim!

 

Am sourcing a letter to send with the doc I've attached.

 

If I need to make amendments - please advise!

 

Thanks

[jmd1307]

Also a copy of the mortgage charges letter that'll I'll send with the breakdown.

 

Please advise if this is acceptable!!

 

Thank you for your time!

[dx100uk]

that additional interest ... it says SI doesn't you said

 

 

I think that's simple interest

poss on charges

 

 

dx

[jmd1307]

Hi dx

 

There's 2 lots of additional interest - the simple interest kicked in 23/11/08 until current date, although there was none charged from 23/8/13 to 23/11/14 and then started appearing again.

 

Are what I've done correct? Can I send this info to GE Money?

 

Thanks

[dx100uk]

i'm doubtful about even including or charging any additional interest on AI sums

[jmd1307]

So I need to remove all of yhe additions interest charges? Even though the equate to extortionate fees?

 

Thanks

[jmd1307]

Sorry, just read again - you mean just the SI amounts?

 

Thanks

[dx100uk]

pers I would remove the lot yes sadly

 

 

they appears to be additional interest charged 'because' of the fees

 

 

so the CISHEET interest will refund that

 

 

unless you can PROVe from the statements

interest is being charged on the additional interest entries?

 

 

no-one to date has done this for us

you seem capable of working that out,

[jmd1307]

that's quite a hefty chunk, although as you say, the compound interest will allow for that.

 

I'll remove then and will upload a revised one.

 

Hopefully it'll be enough to clear off the remaining £4,880!

 

You're instructions to the spreadsheets were very helpful!! Thank you.

 

Will load up shortly.

 

Thanks