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Jamie-Law
Jamie-Law, Solicitor
Category: Law
Satisfied Customers: 18798
Experience:  Solicitor
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Can interest be freeze on secured loan, uk, I have paid off

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can interest be freeze on secured loan
JA: Where is this? It matters because laws vary by location.
Customer: uk
JA: What steps have been taken so far?
Customer: I have paid off the loan but the debt collectors are asking i start paying of the accured interest
JA: Anything else you want the Lawyer to know before I connect you?
Customer: i just want to know if i can challenge their demand for payment

Hello, my name is ***** ***** I will help you. I am just reviewing your question. Hopefully, we can get this resolved quickly.

Yes, they have the power to do so.

What you need to do is write to the Company and make a formal complaint.

They will investigate the matter and report back to you

If they do not uphold the complaint you can then you can go to the Financial Ombudsman.

They offer a free, independent service and can examine your complaint for free at:

www.financial-ombudsman.org.uk

That should resolve the matter for you.

Can I clarify anything for you about this today, please?

If you need anything further I am available for a follow up at no extra cost.

I was just following up to see if there is anything else I can assist you with today? If so, just let me know.

If not, then I am happy to have been able to assist you.

Customer: replied 20 days ago.
My Understanding was that the interest was freeze when the payment was defaulted. However when it was sold to Elderbridge debt collector they appears to charge interest. After the loan was then paid off they informed me that there is £32000 interest that i must pay.

Interest can be frozen on default unless the lender says otherwise.

It is not automatic. The terms would allow them to continue to charge interest.

So unless they say otherwise, it would be still payable as a matter of contract.

But you should take the steps I have outlined above.

Does that clarify?

Customer: replied 20 days ago.
Many thanks. I will pursue it with FOS as advised.

My pleasure.

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