Tweet
Black horse/Skye Loans transfer of secured loan- Lengthy phone call on how it works
After a lengthy call to Skye loans regarding the balance and how it became what it is today.
Black Horse when they offered payment breaks basically took the payment break as a missed payment, how?
What they done was allowed the payments to extend by one month for every break they allowed you BUT, they also applied the non payment tp the account as missed and charged you interest on it from the date of the payment break (missed payment) for the full term of the loan. So lets say you have a fixed term loan of 60 payments of £100 and after making 6 payments they give you a payment break then the £100 payment will be looked upon ( for repayment sake only, not as arrears in any way) as a missed payment and will incur interest over the full term of the loan, they DONT add this as arrears so you never know where that figure is going to end up!
Now, You have a fixed term loan of 60 months with black Horse which you expect will now last for 61 months, WRONG! it will last a lot longer.
When they sell your loan to Skye Loans they tell them that your outstanding balance you owe is liable for them to apply monthly interest towards it as this is what Black Horse told them, this is so wrong as when you take out your 60 month FIXED term loan with Black Horse that is for a repayment of the money you borrowed plus their interest/fees already added to the loan from day one, as an example see below.
£4500 loan over 60 months @ £100pm to repay a loan of £4,500 you initially borrow + £1,500 for interest and fees added = £6,000 total repayment. (60x£100)
lets say you paid 50x £100 = £5000 you would think that you have £1,000 left to pay right? WRONG
When Skye Loans take over your loan from Black Horse you owe £1,000 PLUS interest on that at 11.9% pa for the duration of the term of your loan, (approx an extra £10pm x 10 monthly payments left = £100 extra in payments to Skye Loans) BARING IN MIND THAT YOU HAVE NEVER MISSED A SINGLE PAYMENT OVER THE TERM OF YOUR LOAN OR EVEN BEEN LATE.
Now, it gets a bit more complicated if you have taken payment breaks while with Black Horse, heres how it goes. I will show how it goes with a real current situation with someone i know.
£10,000 loan over a period of 60 months @ £218pm = £10,000 + interest and fees added of £3,080 = £13,080 total repayment required. this is what happens when you take 2 payment breaks in month 6 and 7 of the 60 month term as they told you you can as your a good customer and you loan will just be extended by 2 more months.
After 5 months you have repaid £1,090 so your outstanding balance at that time would be would be £11,990.
When you get to month 8 payment you owe them £11,900 as above PLUS £436 of payment breaks which incur interest charges you dont expect which would continue to increase each month by adding interest to it and then each and every further month interest on top of the increased amount, effectively interest on top of interest for the remaining 52 months of the loan term, this can seriously add up over time trust me.
Now, just before Black Horse sell the loan to Skye Loans what they do is look at the amount of money you owe due to those 2 payment breaks and add on without telling you the amount of months to be added to your loan term. What they do is tell Skye Loans the repayments finish 5 months later that your term agreement (remember that 2 monts payment break? it becomes 5 months extra payments) and then ALSO tell Skye Loans that you are in arrears to the sum of the interest they charged against the payment break amount (£436) over however how long.
Now, as i mentioned in the first scenario. Skye Loans as they are told by Black Horse are able to continue with the loan agreement but charge interest on the outstanding balance you owe to them when infact Black Horse has already preloaded ALL INTEREST AND FEES PAYABLE AT THE START OF THE LOAN, effectively AGAIn paying interest on top of interest. WRONG.
As for a settlement figure if you want to pay off the loan early with Skye Loans, they require the full payment of the balance they took over fro
Black Horse when they offered payment breaks basically took the payment break as a missed payment, how?
What they done was allowed the payments to extend by one month for every break they allowed you BUT, they also applied the non payment tp the account as missed and charged you interest on it from the date of the payment break (missed payment) for the full term of the loan. So lets say you have a fixed term loan of 60 payments of £100 and after making 6 payments they give you a payment break then the £100 payment will be looked upon ( for repayment sake only, not as arrears in any way) as a missed payment and will incur interest over the full term of the loan, they DONT add this as arrears so you never know where that figure is going to end up!
Now, You have a fixed term loan of 60 months with black Horse which you expect will now last for 61 months, WRONG! it will last a lot longer.
When they sell your loan to Skye Loans they tell them that your outstanding balance you owe is liable for them to apply monthly interest towards it as this is what Black Horse told them, this is so wrong as when you take out your 60 month FIXED term loan with Black Horse that is for a repayment of the money you borrowed plus their interest/fees already added to the loan from day one, as an example see below.
£4500 loan over 60 months @ £100pm to repay a loan of £4,500 you initially borrow + £1,500 for interest and fees added = £6,000 total repayment. (60x£100)
lets say you paid 50x £100 = £5000 you would think that you have £1,000 left to pay right? WRONG
When Skye Loans take over your loan from Black Horse you owe £1,000 PLUS interest on that at 11.9% pa for the duration of the term of your loan, (approx an extra £10pm x 10 monthly payments left = £100 extra in payments to Skye Loans) BARING IN MIND THAT YOU HAVE NEVER MISSED A SINGLE PAYMENT OVER THE TERM OF YOUR LOAN OR EVEN BEEN LATE.
Now, it gets a bit more complicated if you have taken payment breaks while with Black Horse, heres how it goes. I will show how it goes with a real current situation with someone i know.
£10,000 loan over a period of 60 months @ £218pm = £10,000 + interest and fees added of £3,080 = £13,080 total repayment required. this is what happens when you take 2 payment breaks in month 6 and 7 of the 60 month term as they told you you can as your a good customer and you loan will just be extended by 2 more months.
After 5 months you have repaid £1,090 so your outstanding balance at that time would be would be £11,990.
When you get to month 8 payment you owe them £11,900 as above PLUS £436 of payment breaks which incur interest charges you dont expect which would continue to increase each month by adding interest to it and then each and every further month interest on top of the increased amount, effectively interest on top of interest for the remaining 52 months of the loan term, this can seriously add up over time trust me.
Now, just before Black Horse sell the loan to Skye Loans what they do is look at the amount of money you owe due to those 2 payment breaks and add on without telling you the amount of months to be added to your loan term. What they do is tell Skye Loans the repayments finish 5 months later that your term agreement (remember that 2 monts payment break? it becomes 5 months extra payments) and then ALSO tell Skye Loans that you are in arrears to the sum of the interest they charged against the payment break amount (£436) over however how long.
Now, as i mentioned in the first scenario. Skye Loans as they are told by Black Horse are able to continue with the loan agreement but charge interest on the outstanding balance you owe to them when infact Black Horse has already preloaded ALL INTEREST AND FEES PAYABLE AT THE START OF THE LOAN, effectively AGAIn paying interest on top of interest. WRONG.
As for a settlement figure if you want to pay off the loan early with Skye Loans, they require the full payment of the balance they took over fro
Comment