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Hi
I've posted this issue on this forum before and now have an update on my circumstances.
To recap, I took out a secured loan in April 2004 with my husband for £40K paying £518 per month.
We separated in October 2009 and he remained in the property against which the loan is secured with the agreement that he would continue paying the loan. A long story but last year I received notification from FP that he had not made the loan repayments for several months and they were taking us to court for repossession.
The court hearing went ahead and an Order for possession was issued (dated 20 June 2011) with the following wording:
Court orders that:
1. The defendant give the claimant possession of (property address) on of before 20 September 2011
2. The defendant pay the claimant £31, 764 for
3. Upon it being agreed that the defendant shall pay by installments £600 per month.
4. Money judgment in the sum of £31, 764 not to be enforced withot the Courts Permission.
Since the above, my PPI complaint was upheld which paid off the arrears, FP have agreed not to pursue repossession. In the PPI offer (made in September 2011) FP have quoted their loan balance pre-PPI redress of £30 564 (which ties in with the above figure) to be reduced to a new balance £19712 with the PPI redress (figures, as I say, correct in September 2011).
We now wish to sell our property, all payments are now up to date and have asked FP for an current redemption figure which they now quote as £33160 (more than the original amount agreed in court).
Since the above, my PPI complaint was upheld which paid off the arrears, FP have agreed not to pursue repossession. In the PPI offer (made in September 2011) FP have quoted their loan balance pre-PPI redress of £30 564 (which ties in with the above figure) to be reduced to a new balance £19712 with the PPI redress (figures, as I say, correct in September 2011).
We now wish to sell our property, all payments are now up to date and have asked FP for an current redemption figure which they now quote as £33611 (more than the original amount agreed in court).
I've contacted FP for a breakdown their redemption figure and have only just received a response. They state that the actual balance of the loan is now £17660.10 (this would have been £19712 - the figure quoted in my previous posting - back in September) but they are adding on a huge interest charge of £15499.97 hence the high settlement figure.
I'm surmising therefore that back in June 2011 when they took us to court for repossession, FP only asked the judge for the balance figure which would then have been £31, 764 and not the redemption amount and this was probably a mistake on their part. Having said that the key issues are:
1. Can FP ask for a settlement figure higher than that agreed in the repossession order in June 2011?
2. This huge interest charge upon settlement is not clearly outlined in their terms and conditions. It states: "If the settlement figure is more than 120 months from the date of this agreement (this is not the case as loan taken out in April 2004, so...)...In all other cases the amount payable will be a) the balance of the loan including arrears and charges applicable, if any, plus interest up to the settlement date and (b) interest at the rate in force at the settlement date for the period from the settlement date up to the date 120 months from the date of this Agreement".
My feeling on the above T and C is that this effectively gives FP carte blanche to charge an arbitrary settlement figure which contravenes certain regulations relating to unfair terms in consumer contracts.
My overall concern is that I am unwilling to accept FP's settlement figure but really want to sever ties with my estranged husband who still lives there with his new partner. I really need to sell my property on which the loan is secured soon so I am reluctant to go down the FOS route unless absolutely necessary. Is there perhaps a quicker way that I can resolve this matter (I have tried writing/calling FP but they are really not taking any notice other than send the above breakdown)?
I've posted this issue on this forum before and now have an update on my circumstances.
To recap, I took out a secured loan in April 2004 with my husband for £40K paying £518 per month.
We separated in October 2009 and he remained in the property against which the loan is secured with the agreement that he would continue paying the loan. A long story but last year I received notification from FP that he had not made the loan repayments for several months and they were taking us to court for repossession.
The court hearing went ahead and an Order for possession was issued (dated 20 June 2011) with the following wording:
Court orders that:
1. The defendant give the claimant possession of (property address) on of before 20 September 2011
2. The defendant pay the claimant £31, 764 for
3. Upon it being agreed that the defendant shall pay by installments £600 per month.
4. Money judgment in the sum of £31, 764 not to be enforced withot the Courts Permission.
Since the above, my PPI complaint was upheld which paid off the arrears, FP have agreed not to pursue repossession. In the PPI offer (made in September 2011) FP have quoted their loan balance pre-PPI redress of £30 564 (which ties in with the above figure) to be reduced to a new balance £19712 with the PPI redress (figures, as I say, correct in September 2011).
We now wish to sell our property, all payments are now up to date and have asked FP for an current redemption figure which they now quote as £33160 (more than the original amount agreed in court).
Since the above, my PPI complaint was upheld which paid off the arrears, FP have agreed not to pursue repossession. In the PPI offer (made in September 2011) FP have quoted their loan balance pre-PPI redress of £30 564 (which ties in with the above figure) to be reduced to a new balance £19712 with the PPI redress (figures, as I say, correct in September 2011).
We now wish to sell our property, all payments are now up to date and have asked FP for an current redemption figure which they now quote as £33611 (more than the original amount agreed in court).
I've contacted FP for a breakdown their redemption figure and have only just received a response. They state that the actual balance of the loan is now £17660.10 (this would have been £19712 - the figure quoted in my previous posting - back in September) but they are adding on a huge interest charge of £15499.97 hence the high settlement figure.
I'm surmising therefore that back in June 2011 when they took us to court for repossession, FP only asked the judge for the balance figure which would then have been £31, 764 and not the redemption amount and this was probably a mistake on their part. Having said that the key issues are:
1. Can FP ask for a settlement figure higher than that agreed in the repossession order in June 2011?
2. This huge interest charge upon settlement is not clearly outlined in their terms and conditions. It states: "If the settlement figure is more than 120 months from the date of this agreement (this is not the case as loan taken out in April 2004, so...)...In all other cases the amount payable will be a) the balance of the loan including arrears and charges applicable, if any, plus interest up to the settlement date and (b) interest at the rate in force at the settlement date for the period from the settlement date up to the date 120 months from the date of this Agreement".
My feeling on the above T and C is that this effectively gives FP carte blanche to charge an arbitrary settlement figure which contravenes certain regulations relating to unfair terms in consumer contracts.
My overall concern is that I am unwilling to accept FP's settlement figure but really want to sever ties with my estranged husband who still lives there with his new partner. I really need to sell my property on which the loan is secured soon so I am reluctant to go down the FOS route unless absolutely necessary. Is there perhaps a quicker way that I can resolve this matter (I have tried writing/calling FP but they are really not taking any notice other than send the above breakdown)?
