nai_in_av

Ok I am not sure what sort of replies I expect from this post (probably smutty ones given most recent topics!!) but am hoping someone can maybe give me some advice/contacts for what to do. Bit of a long post this, but its a long story.

Basically when I left the UK last October, a few months before I left I took out a new loan to consolidate any existing debts (loan + credit cards) so that I just had 1 payment to make from over here back to the UK each month (plus the new loan was a better interest rate). One of the loan's that I took out the new loan to cover was with Company M (this is the problem) so before I took out the new loan I had called Company M to find out the total due/final payment date etc and was told the total was X and final payment was Feb 06. Great, less than I thought and it will be paid off soon. So things are fine until Mar 06 when I start getting letters at my last address saying I have missed payments etc. So I call Company M in April and talk to someone there, I explain that I am getting these letters but had previously been told the last payment was in April (now up to this point, any time I had called about a balance they had been able to tell me right away, but this time the woman did not give me any details at all) the person I spoke to goes off, comes back and tells me a manager will call me later that day. I give them 2 different phone numbers to contact me on and wait. No one calls.

So I leave it a while and am still getting letters, now saying I have missed 3 payments and blah blah blah. So this morning I call again, I explain the whole story of calling last year and being told the final payment was in Feb 06, that I called in Apr 06 and was told someone would call back and that no one did. This guy then tells me I have in fact 16 payments left! so after scraping myself back off the floor I again explain that I was told I had a final payment in Feb 06 and that even when I called in Apr 06 no one told me anything about having 16 payments left. He then tells me there are no notes on the file indicating that I called in Apr, a few minutes later he says he found some notes and that someone tried calling me on Apr 13th (2 days after I called) but there was no answer and no answering machine (this stinks of BS to me as I gave them both home and mobile numbers and both have voicemail on). He then tells me that he needs to investigate further, look up balance etc and that if I don't hear back from them, to call back in 7 days.

My main problem is that it sounds like I now have 16 payments to make back to the UK, which basically f**ks me over. The loan I got before leaving was for a total amount to cover the Company M loan (+ credit cards) so that I did not have to make various payments. Since I am now no longer in the UK I doubt I could call the newer loan company and ask for X amount extra because Company M cocked up.This now means I have to send an extra $500 to the UK each month (on top of the $700 I am already sending) which is not going to be easy. Along with consolidating my debts with the new loan I did not want to have to be sending back $1000's each month because I basically don't have that sort of money each month. I can't get a US loan to cover the 16 payments because I have no credit here, I can't get a new UK loan as I am no longer a resident, so am probably screwed.

So going on the above, a) what options do I have? probably none other than try to sort out some kind of plan to make the 16 mystery payments. and b) who can I complain to besides Company M? Is there some kind of government/financial ombudsman? I am really p***ed off about this because I had called more than once to get a total so I knew how much I needed on the new loan (I did not want any more than I needed), and not once was told anything other than February. This post is really more of a rant than anything else, but am hoping that someone can also offer some advice as to who I can contact.

Thanks, sorry for the long winded post.

Elvira

First thing you need to do is look at the paperwork you signed when you originally set up the loan. If that does not answer your questions, I recommend that you ask your question at the Dealing with Debt board at the Motley Fool. The guys there really know everything there is to know about any fast ones that loan companies may try to pull, and how to deal with them. You'll find them in the Personal Finance section (I think) on the Discussion Boards at www.fool.co.uk

HTH!

BigDavyG

Good idea - try to find out exactly where you stand with Company M.
If you really do owe them a lot, or believe you have been messed about ask yourself this - what assets do you currently have in the UK and when do you intend to return on a permanent basis.
If the answers are none, and at least ten years I suggest that you default on both loans and tell then to go f**k themselves.
Yes, yes - I know its neither big or clever but if sending back $1200 a month is a big struggle for you why worry about it.

Elvira

You must be off your rocker! Who knows what the future holds. Best laid plans and all that...

Quite apart from the ethical issue FFS! I had expected a bit more integrity from you... Or have you still not managed to get at your meds?

nai_in_av

Ok posted over at the fool website, now waiting for some replies there.

I have no assets in the UK, and am pretty unlikely to ever return on a permanent basis. What happens when the loans default though? (I don't fully know what that actually means) the letters are being sent to my parents house (was staying with them for a period while we were sorting out visa stuff) and I don't want to f**k them over.

Jerseygirl

How can you overlook a debt of $8,000? Surely you must have had some idea how much you owed.

BigDavyG

I don't see how they could give your parents any hassle - it is your loan.
Perhaps your parents could start to return the letters writing not known at this address on the front - that should get the ball rolling.

There are quite a few people on this site who might have more insight into this matter than myself, though a few will prob take the moral high ground, but at the end of the day I have very little sympathy for these money lenders.

nai_in_av

I had some idea, but not an exact amount, which is why I had called to find out what the exact total was. Because of the various loans/credit cards I had at the time (and had for several years) I lost track of what totals were owed where, again that's why I called to find out the total before I got the loan to consolidate on the debts.

Thanks all for the replies.

Jerseygirl

Some idea!!! I still don't understand how you can overlook this. Surely you had monthly statements showing how much you'd paid and how much was owed. How can you overlook $8K?

BigDavyG

Its pretty simple.
A lot of loan companies don't send monthly statements and if you've had a longterm loan I imagine it would be easy enough to lose track.

Jerseygirl

Sorry Davy but I don't agree. The OP got himself into debt and he should sort it out. As I wrote above how can you overlook a $8K debt? OK you get bombarded with offers of cheap loans but it is ultimately your choice, no one is forcing you to buy anything or take a loan out. Seems to me that the OP cannot control his finances.

Celsius

I sincerely hope you're taking care of your debts in a better manner in the US.

Elvira

Come on guys stop moralising... The chap got himself in a bit of pickle and is trying to sort it out. He's probably a young pup, busy making nookie with his lovely US bride, so how can you blame him for losing track of boring old $$$

At least he is trying to get it sorted. (NB: It is very likely that the lender WILL hassle his parents, because as far as they are concerned, that is where he is living.)

Ozzidoc

1.Ddid you get a written estimate from company M as to what the final amount was?
2. tell them in writing that u want a copy/transcript of your original phone call and their complaints procedure.
3. if it is a complete balls up, try to get them to revert the financial situation back to the time ,when u thought that u were making the last payment. ie, if you are actually 16 payments behind, then you dont want the interest on the interest on the interest....which could easily add up to $8000. It'll be the interest that's the killer, not the original amount(s).
4. Explain all to the Sunday Times Money section - they maybe able to sort something out re the misunderstanding or the freezing of the amount.
5. Write to the ombudsman/who,ever they r regulated by.
6.There will be light at the end of the tunnel....it's just a little duller than first anticipated.

Tinyburst

I can confirm that the loan company will hassle the parents. My son left home (and all his debts) with no forwarding address a couple of years ago. I returned all correspondence addressed to him with "no longer at this address on the envelope). After a couple of months the phone calls started. I explained that he no longer lived with us and I did not know where he was (true). Then they started calling neighbors and asking about my son. Eventually the bailiffs arrived with a police escort. So yes; the parents will be hassled!!!!

Tiny