Arrears on secured loan HELP !!!!!

[Imbera27]

Hi, I have a secured loan which I got into arears with when my husband wasnt working, I am making the normal monthy payments but they are telling me the arrears need to be cleared in full £2800 which I dont have. They are calling 10-15 times a day.What can they do, can they take me to court etc I am paying them the normal £277 per month. Please also note that I will be clearing this debt in end Jan/Feb once the sale of some land we have has gone through.

[MarkRae]

When you say that you'll be clearing the debt early next year, do you mean the entire loan or just the outstanding arrears...?

[rojash]

If they are calling you 10-15 times a day, that's harassment and it's illegal.

http://www.adviceguide.org.uk/england/debt_e/debt_action_your_creditor_can_take_e/harassment_by_creditors.htm

[MarkRae]

Indeed. Get yourself down to your local Citizens' Advice Bureau. They'll help you find a local solicitor who will write them a letter explaining the situation and get the harassment stopped.

[Imbera27]

i will be clearing the whole debt whic is around £8k the debt is with Welcome finance and I know they are in trouble. I have wrote and told them to stop calling me at work as I am not allowed personal calls and all future contact to be written form. I just wasnt sure what they could do asi thought by the time they have applied to the court xmas and holiday i will be able to clear it off and wasnt sure whee I stood as its not like im not paying them a penny. I have actully paid anextra £50 this month toward the arrears

[MarkRae]

When is your appointment with the Citizens' Advice Bureau...?

[Imbera27]

not got an appointment with CAB found a template off moneysavingexpert.com which I have emailed over to them

[Imbera27]

yes i am upto date on my mortgage

[chrissa1]

I know the calls are annoying and if you have told them you can pay of the whole debt in the New Year I can't understand why they are doing this.

Don't take the calls and write them a Recorded Delivery letter explaining what you are going to do..

If they take you to court, so what? By the time it comes to court you probably will have paid it off. If not, then go to court and have your say. As has been said, no judge will uphold their case.

[chrissa1]

*I can't understand". Sorry.

[DTCwordfan]

What's stopping you going to the bank and getting a short term loan, then settling it when the land is sold, using the loan to square off the debt - the other route is to use one of those zero per cent credit cards?

The interest rate will, I would suspect, be far, far, lower than you are paying with your current shower, and more peace of mind.

[chrissa1]

I thought you should never take out a loan to pay off a loan DT, thus incurring more debt and interest, however small.

[Imbera27]

Due to having arrears from the loan my credit score is terrible so that isnt an option

[DTCwordfan]

chrissa - not when she has the security behind it and its a cheaper option......as long as she promises honour to settle on completion of the sale.

There are still some relative low interest cards - as long as you don't use them for anything else and I suspect at lower annual rate than you are paying.

[chrissa1]

If it does come to court.
Just go and plead your case.
We have done it and it's easy.

[Imbera27]

Chrissa1 thanks for that i was just worried they would try and reposses the house cause the loan is secured on it. What happened with you, were you in areas but making regular payments

[chrissa1]

Hi Imbera27. Honestly, you have nothing to worry about.
My late husband and I were going through a really bad patch and, if you read
my question, were paying off a credit card debt at £220/month. The debt
was only being reduced by £2/3 per month because of interest etc. We would
have been dead before it was paid off. We stopped paying and after months,
they tried to bankrupt us.

http://www.theanswerbank.co.uk/Law/Question707275.html


As I've said before, NO judge is going to uphold such a stupid claim.

Don't be afraid. You don't need a solicitor if it happens.

Take care. Chrissa1