Luke Dunstan Posted February 24, 2011 Report Share Posted February 24, 2011 I took a loan out about 5-6 years ago to pay off some other minor debts(£2500). I paid the loan each month for about 1 year (£200 each month) which was easy to pay because I lived at home and had no other commitments. I stopped paying the loan and have heard nothing for years because I've moved house and changed jobs several times. I get a phone call tonight from a "foreign" gentleman rang my home phone and asked for me, the mrs handed me the phone and he starts on about the loan company I owe money too. I only agreed to my name, and he doesn't know my new address or employer because I refused to tell him, and he said that he'd call back tomorrow. Basically the situation I'm in now financially has no room for repaying this loan (yet), what rights do I have and what could happen next? I was young and stupid when I took the loan out, and know I should've paid it back. Last time I checked I still owed them over £4000. Any advice would be greatly appreciated. Quote Link to comment Share on other sites More sharing options...
tomturd Posted February 24, 2011 Report Share Posted February 24, 2011 Is the interest on the loan more than you'd have on a credit card? Can you get a credit card? I have no idea really, but I'd stop trying to avoid it as you'll just get in more shit. Moving the debt onto a credit card if possible, and paying off the interest on the credit card each month might be more manageable, if possible. Quote Link to comment Share on other sites More sharing options...
haydon_peter Posted February 24, 2011 Report Share Posted February 24, 2011 Surely if they rang your home phone they would be able to find out where that landline is located and get your current address pretty easily? Quote Link to comment Share on other sites More sharing options...
JD™ Posted February 24, 2011 Report Share Posted February 24, 2011 Yea you can safely assume that if they've got hold of you on a landline then they know everything they need to know... I did exactly the same thing for the same amount of money when I was 18, except I only paid 2 installments then ran from it. Did a lot of Ostrich impressions but it caught up with me eventually. What was originally a 3 year loan is now a stupidly high interest consolidation loan for 7 years, of all the shit I did when I was 18. My advice is be honest with them, tell them how much you can pay and try to work something out. Quote Link to comment Share on other sites More sharing options...
JT! Posted February 24, 2011 Report Share Posted February 24, 2011 I married into a small credit card debt of about $400. 80% of which was interest and other charges. I called them and they said they would settle for about $300, but they said it would effect your credit score if you paid the settlement amount so I opted to pay it in full (I got the money back from the mother in law over a year) although I think if i paid the settlement amount it wouldn't have effected my credit score too much. You're account will now have been frozen so they won't keep charging you interest anymore, but it will have done some damage to your credit score. I guess if you have no intention of loaning any money, getting a mortgage, getting anything on credit you could just ignore it... but if you plan on buying a house it's possible the damage to your credit score would mean you'd have to pay a lot more than 4k extra on your mortgage because of it. Don't expect to see any tax refunds you might be owed though, they'll go straight to that debt. Quote Link to comment Share on other sites More sharing options...
Luke Dunstan Posted February 25, 2011 Author Report Share Posted February 25, 2011 (edited) Is the interest on the loan more than you'd have on a credit card? Can you get a credit card? I have no idea really, but I'd stop trying to avoid it as you'll just get in more shit. Moving the debt onto a credit card if possible, and paying off the interest on the credit card each month might be more manageable, if possible. I have tried to get a credit card, and finance on a TV, been refused both. So I assume my credit rating is pretty poor. Surely if they rang your home phone they would be able to find out where that landline is located and get your current address pretty easily? Well, he asked whether or not I lived at 69 R****g Way, which is where is used to live, and whether I worked at Next still, which was where I worked when I took the loan out. I see what you mean though, only a matter of time. Yea you can safely assume that if they've got hold of you on a landline then they know everything they need to know... I did exactly the same thing for the same amount of money when I was 18, except I only paid 2 installments then ran from it. Did a lot of Ostrich impressions but it caught up with me eventually. What was originally a 3 year loan is now a stupidly high interest consolidation loan for 7 years, of all the shit I did when I was 18. My advice is be honest with them, tell them how much you can pay and try to work something out. I read last night that if you send a letter to them telling them to stop contacting you, then they can only contact you to tel you of imminent actions against you. I don't want this debt hanging over me for ages, but at the same time I'm not in the position to pay it back. I've only just moved out with the Mrs and we're trying to work out our living costs etc. I married into a small credit card debt of about $400. 80% of which was interest and other charges. I called them and they said they would settle for about $300, but they said it would effect your credit score if you paid the settlement amount so I opted to pay it in full (I got the money back from the mother in law over a year) although I think if i paid the settlement amount it wouldn't have effected my credit score too much. You're account will now have been frozen so they won't keep charging you interest anymore, but it will have done some damage to your credit score. I guess if you have no intention of loaning any money, getting a mortgage, getting anything on credit you could just ignore it... but if you plan on buying a house it's possible the damage to your credit score would mean you'd have to pay a lot more than 4k extra on your mortgage because of it. Don't expect to see any tax refunds you might be owed though, they'll go straight to that debt. As above, I think my credit rating stinks already. Do you know that if you start paying back your credit rating can get better? Cheers for all the help guys. I know morally I should pay it back. And I do plan to, just not yet Edited February 25, 2011 by Luke Dunstan Quote Link to comment Share on other sites More sharing options...
Rich J Posted February 25, 2011 Report Share Posted February 25, 2011 I owe Natwest £4. They told me they would be taking action immediately unless I paid it, which would effect my credit score, I obviously did pay it, but I don't know how much to begin with is threats and how much is real. I guess if you leave it it will get worse but it completely depends on your situation. If you call up and explain your situation they are much more likely to help you based on the fact they are more interested in getting their money back than ruining your credit rating. It might be worth calling up to arrange something to help. I know thats not much help mind. Quote Link to comment Share on other sites More sharing options...
JD™ Posted February 25, 2011 Report Share Posted February 25, 2011 You need to get in touch with them, I know JT says your account will have web frozen, but when i had my problems with natwest that wasn't the case, interest, missed payment fees and the payments themselves were racking up every month. It will also give you something to use at a later date, if they refuse to help you now you can use it against them when they try to take you to court. I ended up getting a court summons, not just a threat, 6 months after they'd tracked me down. Quote Link to comment Share on other sites More sharing options...
ellingtj Posted February 25, 2011 Report Share Posted February 25, 2011 Dude, big mistake - loan companies never forget or let things go - but you already know this now. OK, as JD says you must contact them, forget about trying to keep them away etc - you signed a contract with them to pay them back and there is no balls up on their account. Now they've found you they can easily get a court order/warrant to get court appointed baliffs to come round your house - and it won't be like private baliffs, these guys can legally come into your house (though can't break their way in). You need to get yourself over to moneysavingexpert forums for more qualified/structured advice. This will not go away, you could declare bankruptcy but you'll never get a mortgage and you'll still have your valuables taken. Quote Link to comment Share on other sites More sharing options...
Matt Vandart Posted February 25, 2011 Report Share Posted February 25, 2011 I bet you they would settle on that loan for 25% of the total. Quote Link to comment Share on other sites More sharing options...
F-Stop Junkie Posted February 25, 2011 Report Share Posted February 25, 2011 I bet you they would settle on that loan for 25% of the total. Hahahahaaha If the "Have you been a refused a loan or got bad credit" people won't touch you, then you're in pretty dire straits. If the loan was taken out at (say) 8%, then moving it onto an 18% credit card is a bad move, especially if you credit score is so bad that the credit card people won't touch you. Your account won't have been frozen either, it'll be racking up interest and missed payment fees month by month. If there's a debt collection agency sniffing around too, then they'll want their fee too. £4k is not an insubstantial amount. The longer you defer too, the more charges rack up, and the more likely legal action will be taken to recover what money they can. Debt collection agencies and banks don't care about you, they want your money back. Right now, you have a large number of debt payments showing as unpaid. That does horrible things to your credit score. You can carry thousands of pounds in credit card debt, loans and overdrafts, but keep making they payments and show you can handle the debt, then you'll keep a good rating. Miss payments and you're stuffed. Get it paid back, get something formal in place and you can recover. Go speak to debt collection people or whoever you took out the loan with in the first place. Get the dogs called off, and get payments restarted. It's not in your interest or theirs to have unreasonable payment terms, so something smaller which you can *and must* keep repaying over a longer term will earn them more money, and mean you have the possibility of getting a mortgage or any form of lending in the future. Keep running, and chances are you'll never be able to get a contract phone, let alone any other borrowing in the future. Yes, you'll probably have to sell stuff and/or go without lifes luxuries now - maybe move back in with the folks - but it'll give you a future. That means no new bikes, blu ray players, iPod touches, King hubs, etc... If you're buying that stuff, why arn't you repaying the loan instead? 1 Quote Link to comment Share on other sites More sharing options...
Luke Dunstan Posted February 25, 2011 Author Report Share Posted February 25, 2011 Hahahahaaha If the "Have you been a refused a loan or got bad credit" people won't touch you, then you're in pretty dire straits. If the loan was taken out at (say) 8%, then moving it onto an 18% credit card is a bad move, especially if you credit score is so bad that the credit card people won't touch you. Your account won't have been frozen either, it'll be racking up interest and missed payment fees month by month. If there's a debt collection agency sniffing around too, then they'll want their fee too. £4k is not an insubstantial amount. The longer you defer too, the more charges rack up, and the more likely legal action will be taken to recover what money they can. Debt collection agencies and banks don't care about you, they want your money back. Right now, you have a large number of debt payments showing as unpaid. That does horrible things to your credit score. You can carry thousands of pounds in credit card debt, loans and overdrafts, but keep making they payments and show you can handle the debt, then you'll keep a good rating. Miss payments and you're stuffed. Get it paid back, get something formal in place and you can recover. Go speak to debt collection people or whoever you took out the loan with in the first place. Get the dogs called off, and get payments restarted. It's not in your interest or theirs to have unreasonable payment terms, so something smaller which you can *and must* keep repaying over a longer term will earn them more money, and mean you have the possibility of getting a mortgage or any form of lending in the future. Keep running, and chances are you'll never be able to get a contract phone, let alone any other borrowing in the future. Yes, you'll probably have to sell stuff and/or go without lifes luxuries now - maybe move back in with the folks - but it'll give you a future. That means no new bikes, blu ray players, iPod touches, King hubs, etc... If you're buying that stuff, why arn't you repaying the loan instead? Thanks for your input mate. The reason I've been buying that stuff is that I'm really bad with money...obviously. Enough is enough because this needs to be sorted, can't have it hanging over me like this. I sell things to make money to buy other things, someone may well insert a pic of Steptoe, or Del Boy? Quote Link to comment Share on other sites More sharing options...
Matt Vandart Posted February 25, 2011 Report Share Posted February 25, 2011 Hahahahaaha Worked for me dude. Quote Link to comment Share on other sites More sharing options...
F-Stop Junkie Posted February 26, 2011 Report Share Posted February 26, 2011 Bankruptcy? What's your credit rating like? Quote Link to comment Share on other sites More sharing options...
JT! Posted February 26, 2011 Report Share Posted February 26, 2011 (edited) Welcome back F-stop Junkie, where did you vanish off to over winter? Edited February 26, 2011 by JT! Quote Link to comment Share on other sites More sharing options...
fruitbat Posted February 26, 2011 Report Share Posted February 26, 2011 I wouldn't try get out of it, it will come back and bite you on the bum - hard! Speak to them and try to sort it out, may work in your favour if you more proactive rather than trying to avoid them. If they have access to your credit file, which they probably will due you having credit with them, they should easily be able to find your updated address so there's no hiding. Quote Link to comment Share on other sites More sharing options...
rhythm_101 Posted February 26, 2011 Report Share Posted February 26, 2011 from personal experience the best thing to do is go into the bank, talk to the bank manager, and sort out a way of paying it back monthly, if you don't do anything, they'll put you on a blacklist, you wont be able to get any type of credit, loan, phone contract ect, to be honest, its not a large amount of money (in the eyes of a bank) so i think you should be able to do something about it before they take leagal action. i would imagine that they have you localized, all they have to do is look on the social security to find out who's emplying you. so your best bet is to man up and go personallyinto the bank, don't worry, they wont bite your head off Quote Link to comment Share on other sites More sharing options...
anzo Posted February 28, 2011 Report Share Posted February 28, 2011 I'd agree that you're better off putting your hands up and sorting this out...5-6 years worth of interest, missed payment fees is going to be pretty shocking - I wouldn't be at all suprised if that lumped another £2000 on top of your loan. Also to keep in mind; bailiffs will charge a fee - they will charge you just for them coming to knock on your door. However, most people will speak like its the loan company who are the bad guys, as you unfortunately know this isn't the case - so the best thing you can do it make the effort with them and they may well be prepared to help you out too...but if you haven't paid a penny for a couple of years you may be beyond the 'friendly terms' bit. Good luck! Ps. The chances of them knowing your new address could be slim - Loan companies to not have direct access to any databases containing such information, thinks like that have to be applied for, possibily through the courts to justify a reason for obtaining it. However, this isn't to suggest they don't have the information already. 1 Quote Link to comment Share on other sites More sharing options...
bollo you ball-bag Posted February 28, 2011 Report Share Posted February 28, 2011 i'm sorry if i sound harsh, but you borrowed the money knowing full well you had to pay it back on agreed terms prior to receiving the mooney. just pay the money back, live off beans on toast instead of expensive food, bike to work instead of taking the car, etc. you get my gist. i took out a 5500 loan 2 years ago and have never missed a payment despite being made redundant, off work on sick pay for 3 months. i just focus on paying bills first, then work out how much money i have left afterwards. get it paid back, it will only get worse Quote Link to comment Share on other sites More sharing options...
F-Stop Junkie Posted April 21, 2011 Report Share Posted April 21, 2011 So what happened? Quote Link to comment Share on other sites More sharing options...
Max Quinn Posted April 21, 2011 Report Share Posted April 21, 2011 You either make notes on Trials Forum happenings, or have the memory of an elephant, fair play! 1 Quote Link to comment Share on other sites More sharing options...
Davetrials Posted April 23, 2011 Report Share Posted April 23, 2011 You need to die for 5 years and live in hawaii, or man up get a job and pay the 4000 grand in instalments Quote Link to comment Share on other sites More sharing options...
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