help please parents being scammed vickih82

#1
in short i have visited my parents today 15 years ago they purchased a conservatory for there home at a cost of £8000 they paid for it monthly as didnt have the full amount at the time i understand that paying for things over time incures apr but today they told me after 15 years of payments they still owe £13000, 5000 over what they were originly charged 15 years ago over the years im sure they have already paid about 26k for this conservatory and are being told they owe 13k still, im sure they are being scammed and dont know where to start has anybody else been in this situation or does anybody know i how i would begin looking into this for them

thanks in advance

#3



in short i have visited my parents today 15 years ago they purchased a conservatory for there home at a cost of £8000 they paid for it monthly as didnt have the full amount at the time i understand that paying for things over time incures apr but today they told me after 15 years of payments they still owe £13000, 5000 over what they were originly charged 15 years ago over the years im sure they have already paid about 26k for this conservatory and are being told they owe 13k still, im sure they are being scammed and dont know where to start has anybody else been in this situation or does anybody know i how i would begin looking into this for them

thanks in advance
Originally posted by vickih82


The first thing you need to do is dig out all their paperwork and understand the loan agreement.



If thy are not paying enough each month to cover the interest then of course the debt will continue to grow.

#4
will do ill get them to sort it all out, i know they were paying £125 per month 15 years agoi worked out that £44 per month for 15 years would have paid it off by now

#5
Are they being scammed or was the apr stupidly high ?



What does the agreement say regarding the apr ?



Are you in a position wheee you could take out a loan of say 13k or as close and use savings to get to the 13k to then pay the conservatory off ?



OP has had advice in 1 of the many threads they had posted, may as well post your advice in that thread.

#6



will do ill get them to sort it all out, i know they were paying £125 per month 15 years agoi worked out that £44 per month for 15 years would have paid it off by now
Originally posted by vickih82


£44 a month for 15 years = £7900.



That doesn't even cover the amount borrowed, let alone any interest.

No wonder the debt is rising.



This loan repayment calculator may help you.

#7
It sounds like they borrowed £8K over several years at a high fixed rate of interest. Not a scam, just a very unwise choice at the time.



How old are your parents? If they asked for a resettlement figure would they be able to take out a low interest loan to pay it off ?

#10
what was the term and APR for the loan...if this was a 25 year loan at 19% then the figures appear correct...there would be over £30k interest on top of the original borrowed amount

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