ehh in so much trouble :(

[seang]

Hi
I really don't know who to turn to.. I had to take a loan that a home learning company orginized for me after the sales person convinced me it was all good (as they do) I stupidly signed the contract and missed 1 payment so they charged another £20 making it £90 in debt and after this i couldnt keep up with the payments, i was afraid to even read the letters they were sending me.. they expect me to pay the entire loan that now is probably over £5000, i have no idea how much they want a month now but i know it wont be £70 as it was because now they'll include the interest, they want it all in 1 go! I have epilepsy, I cant work, i only get £131 every 2 weeks. How do they expect me to pay so much?? I feel so helpless and there's just no way out of it, they are sending threats to me about getting the police and court and all these kinds of things. It's gotten way to much to handle and I simply cannot pay what they now expect me to pay! I'm to afraid to even contact them! is there anything you could help me with? even advice, I don't even know my rights - I don't think I have any rights. I'm simply helpless to the monthly interest, every month is another £90 added! with me on £131 every 2 weeks how should I be able to pay that? help, please! I don't know where to go or who to ask.. I know nothing it's the first time i've ever taken a loan.

thanks,
sean

ps: the reason i missed the first payment: I phoned the sales guy up that set all this up and asked him to wait a week before sending the loan agreement to the loan company because i COULDN'T afford it the first week (had £0 in my account) he said "yes thats ok, no problem" but did he hell wait! he sent it and obviously they tried to take the first £90 out that i didn't have so they charged me another £20 interest.. was i supposed to pay with chocolate buttons then it started, £20 after £20 after £20 in total because of this i was expected to give them £130 a month after the first 3 months and now even more £20's added for mised payments because i simply dont have that much money!

Excuse my language but i am totally SCREWED!

[mariogreymist]

The first thing to remember is to try not to get emotional about this. I know it's hard, but we are talking about money, not some debilitating illness or death of a loved one.

The second thing to do is to deal with the problem head on. You need to open the letters they send and communicate with your creditor. If you contact them and explain the situation, you might find that they are more reasonable than you think. After all, they know they won't squeeze blood from a turnip. Figure out how much you can afford to pay and tell them you'd like to make an arrangement at that rate. The odds are very good they will extend the term of the loan and collect what you can afford rather than take the nothing they'll get from demanding the whole nut at once.

[snafu]

This situation is a learning experience. It's a bad idea to buy from unsolicitated salesmen. It is very important to read all their notices; ignoring them reduces your knowledge and ability to look out for yourself. Don't fret about threats, they are only words!

I suggest making several phone call starting with the Better Business Bureau in your community[may use a different name] to ask if they have other complaints about this firm. Call your government sponsored Consumer Affairs. If these agencies confirm other complaints you are dealing with a sleazy company. 3rd phone/write your local credit bureau to see how this is affecting your credit rating. Follow their instruction for explaning this is a purchase in dispute.
4th phone the company and tell them you don't want the merchandise; you must return it. Tell them you've called the BBB, government agencies etc. and they advised you. Tell them the amount you can pay to clear the debt like 70 pounds + an arrears sum and ask to eliminate some interest. When that fails...negotiate the interest rate downward.

The company is only interested in your money. They don't want to spend more on legal fees etc. Police are not an agency for collections!

[Fern]

Sean, 1st i am very sorry for the situation you are in. You used the word 'helpless' to describe yourself several times. I think you have to stop feeling like a victim in all of this and try to take control of the situation by talking to them as the others have said here and telling them the facts of your situation and attempting to work out a compromise agreement for payment that you can live with. It's in their best interest to work with you as a wholly non-paying loan doesn't do them any good.

There must be some British organizations (f that's where you live) that offer assistance to people like you becus i'm sure you're not the only one.

Good luck, and let us know how it goes.

[loanstar]

this is a case of iresponsible lending, the best place to go is your local Citizens Advice bereue(CAB), they can speak to the creditor and ensure that your payments are re-arranged to suite your circumstances, they're services are free since they're funded by the government..
Good Luck!