Jan
job, she could not afford to continue paying, so she wrote to the union requesting a stop on any interest that might accrue as well as providing the supporting documents about the job loss. they agreed verbally, but on getting a new job,and setting up a new payment plan, she was informed that the interest was still been applied to the reducing balance. but at that point in time, as agreed she was not making any payments, so if the interest was accruing on an unchanging balance, how is the interest then calculated?She was informed that the interest that accrued was charged daily at 1% of the balance of the loan? does anyone know what that would amount to. The loan balance was £2533.00 and whenever she made a payment which was weekly this has continually be applied against the interest, not the loan itself, hence her balance is still 2300.00 despite paying nearly £550.00? anyone good at this help needed urgently? thanks
Answer:
A credit union in the UK can charge a maximum of 2% per month on the outstanding balance.
She should contact ABCUL which is the trade body for UK credit unions and see if they will intervene.
I think you may have a confused story from your cousin but she does really need to contact a debt adviser. This sounds more like a credit card than a credit union
Answer:
citizens advice may be able to help,
also write to your mp
as a lot of people
are or will be
in the same situation soon,
and the goverment is the organisation that make the laws
you can write to your mp here
http://www.writetothem.com/
Answer:
The majority of the payment ALWAYS goes to pay down the interest first and only a small portion goes to the principal amount owing.
Larger payment means more money goes to both.
She can also make EXTRA payments and ask that these EXTRA payments be directed strictly to the principal amount of the loan.
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