I think I may have made a mistake

falkirkgirl · Joined: 19 Jun 2007 Posts: 2

My partner and I have just taken out a loan from a loan company on TV and I think we have made the worse mistake of out lives.

I am shaking as I type this. We have borrowed £27k over 10 years cos we were desperite. i have worked out our payment (£389.14 and we are paying back £46,696)

My husband shouted at me because of this and I want to know what I can do?
Please reply soon. I want to cancel it. I think I have a time in which I can change my mind I want to look at doing an IVA instead.

My brother in law told me that they could also reposess my house if I didnt stay on top of my repayments.
Help me please.

Yvonne

Sarah J · Joined: 07 Jun 2007 Posts: 2

Hi Yvonne,

Have you started making the repayments yet or actually received the money?

I am not an expert but if you contact the loan company straight away you should be able to cancel the agreement and if they say you cannot i would contact the FOS (financial osbudsmen service) and ask them if you are legally allowed to change your mind within a certain amount of days.

I agree that an IVA may be your best option as you will be debt free in 5 years rather than 10.

Sarah J

John · Posted: Tue Jun 19, 2007 3:11 pm Post subject:

Good afternoon Yvonne (and Sarah).

Yvonne,
It would be a good idea if you gather the paperwork from the lender. You should do this because you have a right to cancel the loan, usually within 7 days of receipt of the money. This is called a 'cooling off' period.

If you have received the loan within the last few days and you wish to cancel you must call them. If they try and 'retain' you, you must be strong and polite and advise them you have changed your mind. I say this because they may try and re-sell their loan product to you.

The interest you would be paying is (in my opinion) excessive.

Once you have sorted this you could call me or a colleague who can discuss other options with you. an IVA may well be an option, and once approved, the interest is stopped in its' tracks.

I am only too glad you had reconsidered the loan before it was too late.

Please let me know how you get on.

falkirkgirl · Joined: 19 Jun 2007 Posts: 2

Thank you, John.
I have spoken to the lender and the money is being sent back to them today by cheque. I want to thank you for your help with this.

the company i have leant from have charged me £410 for charges could you possibly deal with these for me if i was to look at an IVA?

Thanks again.
Yvonne