Callng up notice - offer of f&f settlement

[KENHR]

Hi. Firstly, apologies if this post is in the wrong place.

I have just received a calling up notice because of arrears and defaults on a secured loan I took out jointly with my (then)wife just over 10 years ago. The sum borrowed was £60,000 for consolidation of many unsecured loans and credit cards. The loan was to be paid back over 120 months at 6.9% APR.

During the length of the loan, I missed payments due to financial circumstances changing and at the end of the term, although I have paid back pretty much the amount borrowed plus the interest to a total of what I would have paid had I not accrued arrears, the extra interest and charges leave an amount outstanding.

The current owners of the loan (IDEM Servicing) claim that I still owe £38,000 on this loan, even though they sent me a letter telling me I had paid £80,000 towards it. I have asked for and received statements from them to verify this, and the way they have constructed the statement does indeed mathematically add up to what they say.

I owe this extra £38,000 because of my arrears and the extra interest and charges applied to my loan.

I intend to write to IDEM offering them a f&f settlement. A friend has offered to give me an interest free loan to be used to pay a f&f, but the amount she can lend me is not huge.

My questions are:

• How much should I offer with a reasonable expectation of acceptance?
• If IDEM refuse my offer, and they go for a repossession, would a court be sympathetic towards me because I tried to settle this reasonably out of court?
• Is £38,000 a reasonable amount to add on as interest and charges considering that the full amount I borrowed plus the interest I should have paid HAS been paid?

Thanks for any advice you can give me.

[nemesis45]

Re: Callng up notice - offer of f&f settlement

Hi welcome to LB,
Is this loan covered by Scottish Law?
A court may be sympathetic because you have attempted to settle.
The level of charges and/or interest seems extremely high on a loan
of 60K.

F & F Offers how ever high the balance should never start at more than 10 - 15% of the sum owed, to give room for negation.

Have you asked for a full breakdown of how the alleged debt is now at this high level?

nem

[KENHR]

Re: Callng up notice - offer of f&f settlement

Hi welcome to LB, Thanks Nem
Is this loan covered by Scottish Law? I live in Scotland and the property is in Scotland but the loan was with a company based in England and now with IDEM who are based in Solihul. So I am not sure which law it would be covered by.
A court may be sympathetic because you have attempted to settle.
The level of charges and/or interest seems extremely high on a loan
of 60K.

F & F Offers how ever high the balance should never start at more than 10 - 15% of the sum owed, to give room for negation.

Have you asked for a full breakdown of how the alleged debt is now at this high level? I have asked for a statement of the payments/charges/interest sine the loan inception and I have received that. If I follow the month by month statement, their figure adds up - at the end - to what they say. Whether this is correct procedure or not, I'm not sure...

nem

Thanks for your reply nem. I feel as if I'm floundering a bit with this one and wonder if I should employ a solicitor to look at it for me because this is a secured loan and I do't want to lose my house because I got some points of law wrong or make some procedural error.

[nemesis45]

Re: Callng up notice - offer of f&f settlement

Thanks for your reply nem. I feel as if I'm floundering a bit with this one and wonder if I should employ a solicitor to look at it for me because this is a secured loan and I do't want to lose my house because I got some points of law wrong or make some procedural error.

Hi Ken the Scottish Law is not a strong area for me, and I can see your point clearly and I agree it would be advisable to get an expert
to oversee/advise on this.

In my opinion as you are resident in Scotland the Scottish Law applies here.

Good luck!!
Come back at any time if you need help.

nem