Secured loan charges question

[Minionherder]

Hypothetical situation that may come to pass.

I have secured loan. Loan company wants to add charges to the account for being in arrears. I am disputing the charges as it is their fault an arrangement was not set up.

The loan is almost paid off in full.

When the loan has been paid off if I refuse to pay the charges or those charges are still disputed are those charges 'secured' against my property or once all the credit has been paid back is the secured part of the account dealt with?

The reason this came about is during a phone call their agent stated if I refuse to pay the charges at the end of the loan I can still lose my house.

[jaguarsuk]

Re: Secured loan charges question

The loan account is secured against your property until it is closed, they will apply the charges to that loan account and therefore refuse to close the account until they are paid. They would have to default the loan account and go through a lengthy process to reposes your home, but as the loan is secured they could do that.

I wouldn't wait for the charges to be applied if it was me, I would make a complaint in writing stating the reasons why they are at fault for the charges to their CEO and include that if they fail to satisfy the complaint you intend to escalate it to the Financial Ombudsman service to resolve.

Hopefully you can get it all resolved before they are even applied.

[Stressedandskint]

Re: Secured loan charges question

Can anyone out there offer me a crumb of comfort that I can get some help with this issue? We have a secured loan that we cannot afford to pay back. There is enough equity in our proper, so their course of action will be for us to sell the house. We borrowed 56k, and paid back 22k. They now say we owe 80k, due to missed payments and interest etc... Please help. We have both suffered mental issues due to the stress, and no one can help.

[Rosalina]

We also have A secured loan Skye Loans transferred from Blackhorse in June 2015 and they have added interest and charges on our account and are saying these are arrears due to missed payments which isnt the case. We cant remortgage our property because of this secured loan.Im so stressed with these people because we cant do anything.

[smrutik]

1st try to get that paperwork and records and you can also shift your loan with another company all you have to do is Obtain a consenting letter from the existing bank along with the outstanding loan amount. Provide these documents to the new bank that you wish to transfer the housing loan balance. The new lender will then pay off the balance due to your old lender.