GE Money's massive redemption figure

[hobbes741]

Hi All, Im just new here, and am really hoping I can get a wee bit of advice. I took a secured loan with GE Money in September 2004. In November of that year, I suffered an injury at worked that resulted in permanent disability. Things have been very difficult since then, and I have been juggling the small amount of money I have to try to at least pay my creditors. The loan was taken at £7000, plus [interest] of £1050, making a total of £8050. Although payments were sporadic, over the next 10 years I paid to the account £10,333.44. Due to a load of bad circumstance, I am now forced to sell my home or risk repossession. I asked GE Money for a redemption figure, and they have sent me a total of £10,824.93. After I pay this, I shall have paid the grand total of £21,158.37, for an original loan of £8,050. I have not much experience in finance, and I fully acknowledge that payments being made on time would not have resulted in extra interest being added, but paying 2 1/2 times the original loan amount seems pretty harsh. Can anyone please advise? I tried the FCA but they said they do not handle individual cases.

[Amethyst]

Re: GE Money's massive redemption figure

Hi and welcome to LB, do you have a copy of your credit agreement and terms and conditions for the loan? Some sub prime lenders do add an awful lot of charges and interest to accounts. Also have you had statements of transactions on the loan account to see how that figure is made up?

[hobbes741]

Re: GE Money's massive redemption figure

Hi Amethyst, thanks for your reply. I had a whole transaction report sent out. The charges are made up of Contract interest charge, Additional interest, additional interest -SI, and a few solicitor interim legal fees. In a typical month, the 3 types of interest totalled £94.05, and the average monthly instalment was £124.80. I've been informed on other's advice that these charges are re-claimable, but I have absolutely no idea where to go for help on this. I have tried a few PPI claimback companies, but they do not cover this sort of thing. I fully admit that payments were missed and had shortfalls, I just can't believe a Company can provide a redemption figure that is higher than the original loan amount. Thanks for any advice you can offer on this situation.

[IanM]

Re: GE Money's massive redemption figure

Send a SAR to your lender to obtain ALL the paperwork they have and once you have it we may be able to help you claim back fees and charges etc. where possible.

If there are other issues that need complaining about then you will need to set out all your complaints in writing and send it to the lender first and wait for a response. If you are then not happy with their response you can then complain to the FOS where any conduct issues will be reported to the FCA by them for further investigation.

[hobbes741]

Re: GE Money's massive redemption figure

Thanks so much, Ian. I shall request said SAR and contact you with outcome.