Boiler loan default, remainder of loan sold onto another company

[jonjonbb]

Hi Folks

I am trying to help sort out my father’s finances.

He defaulted on a boiler loan, and the loan was sold on to another company who want £3000.

Im suggesting he appeal either to fin ombudsman [though I have read here that they are not much use] or court eg. The decision to sell on the loan, the repayment levels.

 

He took out a loan for a new boiler in 2008, and has defaulted. The loan term was 120 months/10yrs. Apr 20.8%. ‘Current monthly rate 1.468%’

My father paid on time by direct debit until he defaulted in late 2013, early2014. He defaulted as he as didn’t keep an eye on his finances.

The total my dad paid, was from 2008 to 2014: £4031.97 (excluding any interest charges).

 

 

I need help with a few things.

1: At the start of the loan how much did he actually have to pay including interest. Going thru the original papers see photo: boiler loan 2ed. It looks like £3819.29 for the boiler and installation. And £4620.91 interest. So a total of £8440.2 is correct?

In photo Img_0007ed, The amount owed in march 2014 was £3084.79, and the Shortfall of capital was £2576.08. so an approx total £5660.87. So what is the correct amount?

 

 

2: The repayment level makes no sense, see photos: imged to img007ed.

Each month he paid £68.21 a month, however in the same month approx £50 of interest was added back to the loan amount. Meaning only £15 to £20 a month was paying off the loan. Which would amount to approx a maximum of £240 a yr, or £2400 for the ten year loan period. Which does not even pay back the boiler price of £3819.29.

Were the monthly repayment level and other interest calculations, additions, details correct?

 

 

thanks

Jon

 

boiler loan 2ed:

[ATTACH=CONFIG]60502[/ATTACH]

 

 

 

Img_0007ed:

[ATTACH=CONFIG]60503[/ATTACH]

Edited December 9, 2015 by jonjonbb

[ericsbrother]

as the amount paid off is both interest and capital the proportion of interest at the beginning is very high but as the amount owed reduces the interest the balance acrues reduces so more of the capital is paid off.

What I want to know is why there are a number of failed dd's on the 1st of the month when the contract says the money will be collected on the 2nd? Did he agree to a chage of date? If not all of the subsequent charges are not applicable, nor the interest applied to them either.

Their calculations other than this appear to be correct so you need to find out whey these other charges have accrued and why the DD's failed on the 1st of the month but were successful on the 2nd. I think that these charges are reclaimable and certainly will be if the company have done things without notice so ask about other letters received regarding payment dates.