Secured Loan

[seaun2014]

I took out a secured loan with Black Horse Finance 7/8 years ago for around £6, / 7,000-I was paying it regular until I fell into financial difficulties, I am already in a Debt Management plan, however, I was told that I could not include this loan as it was a secured loan, I was making reduced payments for nearly 2 years, constantly getting default notices but nothing else-I then recieved a letter from Black Horse that they have "sold" my account to Idem Servicing who are now demanding that I make full payments- I have a balance of nearly £7,000 owing and have paid around £100 per month but they are asking for over £200, I am refusing to complete a financial statement or send bank statement / salary slip as I feel it is an abuse of my privacy.

I have NEVER missed my mortgage payments - could they take me to court and make me put my property up for sale even though I am willing to continue making the £100 monthly payment to them-there is no way that I can make the payments they want as I need to try to save money as there are things in my property that I need to do over the next cpl years-they are also still charging me interest-I must have paid this loan twice over by now!!!

Any help much appreciated-those companies are nothing but parasites

Thankyou

[Guest]

Re: Secured Loan

Yes they are indeed.

They can unfortunately demand whatever they want, within the terms of the original contract, but no need to panic just yet, if they have only just sent the demand, especially if you have maintained reduced repayments for such a long perio.

You mentioned a DMP can i ask who this is being run by and roughly how much yuo are paying on thi, also how much is outstanding, perhaps it would be possible to reduce payment on the on secured lending in order to get BH off your back.

[seaun2014]

Re: Secured Loan

Thanks for that-The original secure loan was with Black horse who only sold it over to Idem in last couple of Months, who are now demanding full payments-I am in a DMP with Step Change and paying around £150 to them for unsecured debt of around £15,000

I actually had the secured loan in the DMP for nearly 2 years which Black Horse accepted!!

[Guest]

Re: Secured Loan

Thanks for that-The original secure loan was with Black horse who only sold it over to Idem in last couple of Months, who are now demanding full payments-I am in a DMP with Step Change and paying around £150 to them for unsecured debt of around £15,000

I actually had the secured loan in the DMP for nearly 2 years which Black Horse accepted!!

Surprising that step change would accept a DMP on secured loan the creditors hardly ever agree to suspend interest on one of these. Have you talked to them about this situation.

I have known DMPs for around that figure operating on £80 or $90 a month so perhaps there is some leeway there to raise a little extra and negotiate the balance with the creditor ?

[seaun2014]

Re: Secured Loan

Surprising that step change would accept a DMP on secured loan the creditors hardly ever agree to suspend interest on one of these. Have you talked to them about this situation.

I have known DMPs for around that figure operating on £80 or $90 a month so perhaps there is some leeway there to raise a little extra and negotiate the balance with the creditor ?

I am just so fed up as have paid this loan over and over and still owing same as when loan taking out-it just cant be right that companies can shapt borrowers like that- I take it they cant make me sell my property as its a 2nd secured loan on property and have no arrears at all on my mortgage??

[Guest]

Re: Secured Loan

I am just so fed up as have paid this loan over and over and still owing same as when loan taking out-it just cant be right that companies can shapt borrowers like that- I take it they cant make me sell my property as its a 2nd secured loan on property and have no arrears at all on my mortgage??

I wish I could tell yo taht you were right, but unfortunately they can. Unlikely , and they would have to take you to court get a CCJ and then convince a judge that the only option was repossession, but it has happened before. This is why usually DMP providers consider this kind of loan as being a priority debt.

It sounds like all you have been doing is paying off the interest on the loan, so the balance has not reduced, or even increased over the period. I recommend that you get in touch with then DMP provider and re-organize your repayments, far better to pay a nominal amount off your unsecured credit and repay your secured borrowing in full than the other way around, for the above reasons.

[seaun2014]

Re: Secured Loan

Okay-thanks for that-but my payments for the secured loan is well over £200 a month, my DMP is £135 a month and the total debt is greater than my secured loan!! It just doesn't make sense at all-I really don't wish to reduce my DMP as all of the creditors on this have been great and frozen all interest unlike the black horse / Idem parasites-all my family and friends agree and say that it would be very doubtful that they would go to court and if they did-any judgement would probably be in my favour as i am making a regular payment and never had any arrears on my mortgage??!!

[Guest]

Re: Secured Loan

Okay-thanks for that-but my payments for the secured loan is well over £200 a month, my DMP is £135 a month and the total debt is greater than my secured loan!! It just doesn't make sense at all-I really don't wish to reduce my DMP as all of the creditors on this have been great and frozen all interest unlike the black horse / Idem parasites-all my family and friends agree and say that it would be very doubtful that they would go to court and if they did-any judgement would probably be in my favour as i am making a regular payment and never had any arrears on my mortgage??!!

In that ease i suggest you contact national debtline or the CAB, see if they agree with you family and friends. Or have a look at some of the threads on here.

Anyway good luck

[seaun2014]

Re: Secured Loan

In that ease i suggest you contact national debtline or the CAB, see if they agree with you family and friends. Or have a look at some of the threads on here.

Anyway good luck

Many thanks

[Debt Camel]

Re: Secured Loan

I am refusing to complete a financial statement or send bank statement / salary slip as I feel it is an abuse of my privacy.

You are in a weak position with regard to this secured loan. I suggest you forget all about privacy concerns and get on with sensible negotiations.

but my payments for the secured loan is well over £200 a month, my DMP is £135 a month and the total debt is greater than my secured loan!! It just doesn't make sense at all-I really don't wish to reduce my DMP as all of the creditors on this have been great and frozen all interest unlike the black horse / Idem parasites

You don't seem to understand that secured loans have to take priority over unsecured loans.

You have been paying it 'for ages' because you are paying at a reduced rate. Interest isn't frozen on a secured loan, so probably your reduced payment is barely covering the interest and the capital isn't being paid off.

This isn't the secured lender 'being a parasite' - it is the nature of a secured loan. Lloyds did you a favour by agreeing to accept a reduced payment at all, they were under no obligation to.

Now you need to reduce your DMP payment so that you can make the full payment to this secured loan. Forget all about your DMP creditors being 'nice' and black horse / idem being parasites, this sort of labelling is preventing you from sorting out your problem.

-all my family and friends agree and say that it would be very doubtful that they would go to court and if they did-any judgement would probably be in my favour as i am making a regular payment and never had any arrears on my mortgage

I am afraid your friends and family clearly have no idea about how secured loans work. The secured lender has a charge over your property, if you do not make the loan repayments they have the right to enforce that charge. the fact that you have been paying your mortgage is completely irrelevant - that means your mortgage lender won't take you to court for possession but has absolutely to impact at all on the rights of the secured loan lender.

[beewatch]

Re: Secured Loan

In agreement with debt camel there, my advice would be to cooperate with idem and come to an agreement in terms of repayment. All they are asking is to justify reducing payments on a loan that you have secured on your property. Your priority debts are your mortgage and secured loan, any unsecured loans can be paid as low as £1/m and other creditors would still be likely to freeze their interests.

[stevemLS]

Re: Secured Loan

In one sense the fact that you have been making regular payments for a lengthy period but made no progress on repaying the principal works against you - any judge considering an application for a possession order wants to see a realistic prospect of the arrears and capital being repaid.

You are a long way from there though. It would be usual for a possession order to be suspended in the first instance, that is to say won't be executed providing the debtor keeps to agreed payments.

But, it must take priority over your other debts - that is the whole point of it being a secured loan.