The Paragon debt has really been getting me down this week, I have a 12 year old son who is as old as this debt, I'll still be paying the debt when he is 18.
I have made an appointment with the Citizens Advice Beareau for later on today. On the telephone they advised I was probably better off not paying any more and let Paragon take me to court.
I'll post again later with the outcome of the meeting.
Thursday 19 June 2008
Wednesday 18 June 2008
Paragon - had enough
Last month I had a phone call from Paragon asking to increase my payments again. After a long discussion with them I said I was really unhappy with how they are handling my account and asked what they could do about all the interest they have added. As usual they did not seem interested in discussing my account, I was told I had 2 options, increase my payments to what they wanted or send in an income and expenditure form and they would decide how much I could afford each month!.
I explained I was already paying more than I could really afford (£215 a month) and more than the original monthly payments. I asked how a £4200 debt had turned into a £13k debt (plus the £15k I have already paid) and they said they couldn't comment on the account.
After about 30 minutes I told them I wasn't going to increase my payments and hung up. I wasn't getting anywhere, they wouldn't say how much I still owed or even how much interest they are charging. They did say something about capped payments, but that has been mentioned every time they call since 2003 and nothing has ever come of it.
This month I sat and thought about it, I have already paid back the debt four times over and still owe something like £13,000. I made the decision to stop paying, what's the worst that could happen? They could take me to court and I'd get a chance to explain all of this to the court.
Today I got the dreaded call from Paragon. "we notice you haven't paid this month". Once again I had to run through my entire story, how much I have paid, how CAB agreed for the interest to be frozen. Once again I got nowhere with them.
I explained I was already paying more than I could really afford (£215 a month) and more than the original monthly payments. I asked how a £4200 debt had turned into a £13k debt (plus the £15k I have already paid) and they said they couldn't comment on the account.
After about 30 minutes I told them I wasn't going to increase my payments and hung up. I wasn't getting anywhere, they wouldn't say how much I still owed or even how much interest they are charging. They did say something about capped payments, but that has been mentioned every time they call since 2003 and nothing has ever come of it.
This month I sat and thought about it, I have already paid back the debt four times over and still owe something like £13,000. I made the decision to stop paying, what's the worst that could happen? They could take me to court and I'd get a chance to explain all of this to the court.
Today I got the dreaded call from Paragon. "we notice you haven't paid this month". Once again I had to run through my entire story, how much I have paid, how CAB agreed for the interest to be frozen. Once again I got nowhere with them.
Tuesday 17 June 2008
Sound familiar?
This is from a thread on the Consumer Forums (http://www.consumeractiongroup.co.uk/forum/general-debt-issues/148293-paragon-finance-enough-enough.html)
" In Dec 1997 my ex-wife and I took out a loan with Paragon for appx £7,500,
the APR was 28.9% payable over 10 years. A year later we seperated. I changed
profession at this time and advised Paragon that the account would fall into
arrears and that my ex-wife would assist with the monthly payments of £162.34 by
paying half. This happened for a few months and then She stopped paying and the
account ran into arrears (I continued to pay £81.32). I anticipated the
situation occuring and told Paragon that I would bring the account up to balance
as soon as I could. Remembering back it seems they did nothing, and 6 or so
months later payed up the arrears and I was back to paying the £162.34 a month
(incidently the loan is a joint and several liability loan and I have been
paying this amount on my own since the
seperation). This has since continued
uninterupted.Two years ago I looked into
paying off the final amount
expecting to only have a few hundred pounds left to
pay I was a MORTIFIED to
find I had a resettlement figure of £9,500 left to pay.
On contacting
Paragon they informed me that the interest would be frozen, I had
asked them
to do this as a mark of good faith (the word sucker springs to
mind!!!). It
seems that I now have £9,700 to pay. I`m not a maths genius but it
looks to
me that I'm increasing the debt by a few pounds each month, so this
loan
will never be paid off "And it's not the only post about Paragon.
"we took out a loan with paragon 10 yes ago for £15000 unfortunately we found
ourselves is financial difficulty and had to turn to a debt mamagement co called
payplan..(which i have to say have been fantastic in my experiance).......we
were paying off the debt with paragon on a reduced and agreed rate for about 6
yrs..............last yr we got together the money to settle all our
creditors.............and when we asked paragon for a settlement
figure.........we were shocked to find that by our calculations it was about
£3500 and they are saying it is £13500 i obviously queried this and was told
that it was interest on the account as we had not stood by the
agreement"And even more....
"In 1997 I took out a personal loan with Universal Credit for £10,000. I maintained the payments without any problems for a couple of years, but then got into financial difficulties as a result of my business collapsing and the breakdown of my marriage.In this period, the debt was purchased by Paragon Finance, who I was led to believe bought the entire loan book of Universal Credit.I agreed with Paragon to make reduced payments at a level that I could afford after a meeting with an external representative that Paragon out-sourced, who I visited at their house. He agreed that, due to my financial circumstances, interest would be frozen. This surprised me as I believed that my original agreement had been a fixed personal loan and not a monthly charge account.Last November, having first found this site, I sent a Data Protection Act letter to Paragon asking for a breakdown of my account. I was disturbed to find that interest had continued to be charged on my account at the full rate. Despite having paid back in excess of £13k to Paragon/Universal, my balance now stood in excess of £14k."
And yet more...
"hi i am also peed off with paragon borrowed 9000 quid 6 years ago. lost my job so they directed me to the c.c.c.s. we have paid aprox 6ooo back to them. but received a letter stating debt passed on to arrow receivables, the amount was for over 14,000. "
"About 14 or 15 years ago I got a loan for £3500, due to certain circumstances I had to go on to reduced payments for a while. While I was on reduced payments the company I got my loan from was taken over by Paragon Finance, I was never advised of this either in writing or by telephone. A couple of years ago I wrote to Paragon Finance asking them how much I would have to pay to clear this debt and was gobsmacked - to say the least - when they told me they wanted over £14,000 back because of interest accrued. I immediately asked them for an itemised accounting of this which they sent. When I looked at it they had been charging me over £400 per month in interest - my original monthly payment had only been £127! I have now had to go into an IVA to try and clear this debt."
" took out a £5,000 loan with Universal Credit in 1996, which unfortunately due to circumstances defaulted on after paying the bulk off. I heard nothing until approx two years later when I started receiving letters from Paragon Finance (they had apparantly bought the debt - but I didn't get to the bottom off this until recently). Having had no previous dealings with Paragon I asked them to supply details of the debt so I knew what I was being asked to pay. I heard nothing for a further year, when a bailiff turned up. Once again I contacted Paragon asking for details, and again heard nothing. Things continued in a similar vein until March this year when out of the blue I received a letter from them informing me that it was for the loan I had with Universal (although they provided no copy of the agreement) and that they had already taken the case to court and obtained a charging order on my property.I requested a statement and balance (as until this point various figures had been bandied about - going up and down like yo-yo's) and started making payments of £30 a month as a goodwill gesture, however I heard nothing from them until today.Had a letter from them this morning - written in some form of financial jargoneeze:"I can confirm that the balance outstanding under the Judgement Order is £4617.24 and the balance outstanding under the contract is £22107.21 to date."
Wednesday 23 April 2008
Please leave your comments about Paragon Personal Finance
Have you a similar experience with Paragon? Have they charged you thousands of pounds in interest? Had you previously been told the interest had been frozen and then discovered they had added the interest back?
Please add your comments using the button below, you don't have to leave your name.
I intend to write to my MP complaining about Paragon. I'm also going to be writing to the money pages of National newspapers and trying to get my story out as much as possible.
Please add your comments using the button below, you don't have to leave your name.
I intend to write to my MP complaining about Paragon. I'm also going to be writing to the money pages of National newspapers and trying to get my story out as much as possible.
My Paragon debt story
This is my story of how Paragon finance have turned a £4200 debt into a £25,000 debt that gets bigger every month. I'm not alone, there are many similar stories on the Internet.
12 years ago in 1996, I took an unsecured loan with Universal Credit (at that time part of TSB). I wanted to borrow £3700, the condition of the loan was I paid off an existing car loan with Abbey National which stood at £2300. The total borrowed was £6000 with monthly payments of £142.
All was well for three and a half years until I lost my job and couldn't afford the payments. CAB (Citizens Advice) negotiated with them on my behalf and the interest was frozen, I was paying reduced amounts each month. At this point my balance owed was £4212.47. My reduced payments started at £1 and quickly increased to £10 and then £20.
Paragon brought Universal Credit for £25million from the Lloyds TSB group and transferred the debt into their own name. I received a letter saying if I continued to pay the agreed amount by direct debit they would update my credit file to say the account was up to date. Nothing was mentioned about interest. At this point Paragon agreed to my monthly payments of £20 after sending an income and expenditure form.
On checking my credit file I discovered they had actually removed the debt and have never entered anything about it since.
Another couple of years went by, I was now paying £145 a month. At this point I requested a statement to see how much I owed. Paragon are not keen on giving you a balance and after several calls they eventually agreed to supply this for £25.
The statement arrived and I was very shocked to discover they had added interest back to the point when CAB had negotiated for the interest to be frozen. At that point I had owed £4212 with the interest I now owed over £12,000 and the monthly interest was more than my £145 was covering. The debt was rising each month.
At this point I realised I had to do something about the debt, so increased my payments to £176 in the hope of actually reducing the debt.
Paragon phoned me in Juky 2007 asking for increased payments, They said I had to pay £205 a month. I agreed to this on the condition they reduced the interest and didn't keep asking for higher payments. They sent a letter saying they would consider reducing the interest after 3 months of payments. I increased my payments to £215 (more than they had asked for) and never received confirmation they had reduced the interest.
Six months later they called asking for more each month. They constantly refuse to say how much interest they are charging. My balance now stands at over £13,600, that's after all the payments I have made which add up to £15,227.27. If I paid off the debt today I would have paid £28,227. , that's a whopping £22,000 interest!
This debt has already been with me for 12 years, I have already paid the debt about 3 times over and still owe nearly 3 times what the debt stood at when Paragon took it over.
In 1999 I had debts with several other lenders, all of these froze the interest and accepted reduced payments for the first couple of years. All but Paragon have since been paid in full. Paragon would also have been paid off in full many years ago if they hadn't added all the interest.
12 years ago in 1996, I took an unsecured loan with Universal Credit (at that time part of TSB). I wanted to borrow £3700, the condition of the loan was I paid off an existing car loan with Abbey National which stood at £2300. The total borrowed was £6000 with monthly payments of £142.
All was well for three and a half years until I lost my job and couldn't afford the payments. CAB (Citizens Advice) negotiated with them on my behalf and the interest was frozen, I was paying reduced amounts each month. At this point my balance owed was £4212.47. My reduced payments started at £1 and quickly increased to £10 and then £20.
Paragon brought Universal Credit for £25million from the Lloyds TSB group and transferred the debt into their own name. I received a letter saying if I continued to pay the agreed amount by direct debit they would update my credit file to say the account was up to date. Nothing was mentioned about interest. At this point Paragon agreed to my monthly payments of £20 after sending an income and expenditure form.
On checking my credit file I discovered they had actually removed the debt and have never entered anything about it since.
Another couple of years went by, I was now paying £145 a month. At this point I requested a statement to see how much I owed. Paragon are not keen on giving you a balance and after several calls they eventually agreed to supply this for £25.
The statement arrived and I was very shocked to discover they had added interest back to the point when CAB had negotiated for the interest to be frozen. At that point I had owed £4212 with the interest I now owed over £12,000 and the monthly interest was more than my £145 was covering. The debt was rising each month.
At this point I realised I had to do something about the debt, so increased my payments to £176 in the hope of actually reducing the debt.
Paragon phoned me in Juky 2007 asking for increased payments, They said I had to pay £205 a month. I agreed to this on the condition they reduced the interest and didn't keep asking for higher payments. They sent a letter saying they would consider reducing the interest after 3 months of payments. I increased my payments to £215 (more than they had asked for) and never received confirmation they had reduced the interest.
Six months later they called asking for more each month. They constantly refuse to say how much interest they are charging. My balance now stands at over £13,600, that's after all the payments I have made which add up to £15,227.27. If I paid off the debt today I would have paid £28,227. , that's a whopping £22,000 interest!
This debt has already been with me for 12 years, I have already paid the debt about 3 times over and still owe nearly 3 times what the debt stood at when Paragon took it over.
In 1999 I had debts with several other lenders, all of these froze the interest and accepted reduced payments for the first couple of years. All but Paragon have since been paid in full. Paragon would also have been paid off in full many years ago if they hadn't added all the interest.
Reviews on Paragon Finance
These comments come from www.reviewcentre.com after I left a review of Paragon Personal Finance.
"We borrowed £3,000 in in 1989 after our bank - Nat West - had turned us down and suggested we use a loan firm out of the paper. We chose Universal Credit which were later taken over by paragon. Universal Credit sent you statements, paragon have never sent a statement. From 1986 to 1993 my husband, who is in the construction industry, was made redundant three times which obviously affected our ability to pay back the loan in three years. He then went to college for 4 years when I believe we had the interest frozen. I have absolutely no idea what we owe at this moment in time but we have paid £60.00 a month for the past 6 years. What I would like to do is to offer them something like a £1,000 and be finished with the whole damn thing but I don't think it will ever go away-I have a daughter the same age as this debt, 16 - how ridiculous is that? It's an albatross I'm determined to be rid of. "
"We have a similar story, a loan taken out with Universal Credit. After money problems we are paying at a reduced rate, can't find out how much is owed. They never send statements and we were actually threatened with legal or 'some other form of action' not sure what that meant."
"Totally agree. My ex-husband and I took out a loan (in my name as he was made bankrupt)for £7,500 just before we separated. On separating I was informed as it was in my name I was now liable for the loan. Like other people I have never had a statement from Paragon despite many requests. For the past 6 years I have been making reduced payments on what i believed to be reduced interest. On receiving a statement last week (after many phone calls from myself to Paragon) I was staggered to discover I now owe £24,500!. Unknown to me they have been charging me up to £300 a month in interest. HELP!"
"me and my husband have the same problem we have been paying a 15.000 loan with paragon took out 9 yars ago we made full payment for about the first 3 years and for the last six have been making reduced payments through the consumer credit council who have now contacted us to say that it has been brought to their attention about the amount of interest we have been charged and our debt now stands at 28,000 pounds. when will it end. the ccs have instructed me to request a full statement of all charges from the start of the loan, i should not pay for this even though they will try and charge me when i receive this i need to make a complaint in writing to them they have 8 weeks to respond after this i will need to take this to the fsa obundsman ccs have informed me that there are many cases being highlighted at the moment and i should not let it go. they are encouraging everybody to do the same. please please do not let this company get away with this. we all need to make compaints and take this to the fsa. you can contact your local cab for the ccs number they are very good and are a charity set up to help people in debt all their staff are very friendly and helpful you can also find info on paragon on the office of fair trading. good luck and dont let them get away with this ."
"Same Problem here borrowed £4999 in 1994 got into trouble and went with Gregory pennington a debt management company to reduce the payments and freeze the interest which i thought had been done as i have been paying Penningtons every months since 1996. Checked up last month only to find that Paragon had not stopped the interest but also added compound interest on the arrears the result being they now want £17,000 when i have already paid them £12,000 in payments. Help Pleaseeeeeeeeeeeeeeeeeeeeeeeee"
"We borrowed £3,000 in in 1989 after our bank - Nat West - had turned us down and suggested we use a loan firm out of the paper. We chose Universal Credit which were later taken over by paragon. Universal Credit sent you statements, paragon have never sent a statement. From 1986 to 1993 my husband, who is in the construction industry, was made redundant three times which obviously affected our ability to pay back the loan in three years. He then went to college for 4 years when I believe we had the interest frozen. I have absolutely no idea what we owe at this moment in time but we have paid £60.00 a month for the past 6 years. What I would like to do is to offer them something like a £1,000 and be finished with the whole damn thing but I don't think it will ever go away-I have a daughter the same age as this debt, 16 - how ridiculous is that? It's an albatross I'm determined to be rid of. "
"We have a similar story, a loan taken out with Universal Credit. After money problems we are paying at a reduced rate, can't find out how much is owed. They never send statements and we were actually threatened with legal or 'some other form of action' not sure what that meant."
"Totally agree. My ex-husband and I took out a loan (in my name as he was made bankrupt)for £7,500 just before we separated. On separating I was informed as it was in my name I was now liable for the loan. Like other people I have never had a statement from Paragon despite many requests. For the past 6 years I have been making reduced payments on what i believed to be reduced interest. On receiving a statement last week (after many phone calls from myself to Paragon) I was staggered to discover I now owe £24,500!. Unknown to me they have been charging me up to £300 a month in interest. HELP!"
"me and my husband have the same problem we have been paying a 15.000 loan with paragon took out 9 yars ago we made full payment for about the first 3 years and for the last six have been making reduced payments through the consumer credit council who have now contacted us to say that it has been brought to their attention about the amount of interest we have been charged and our debt now stands at 28,000 pounds. when will it end. the ccs have instructed me to request a full statement of all charges from the start of the loan, i should not pay for this even though they will try and charge me when i receive this i need to make a complaint in writing to them they have 8 weeks to respond after this i will need to take this to the fsa obundsman ccs have informed me that there are many cases being highlighted at the moment and i should not let it go. they are encouraging everybody to do the same. please please do not let this company get away with this. we all need to make compaints and take this to the fsa. you can contact your local cab for the ccs number they are very good and are a charity set up to help people in debt all their staff are very friendly and helpful you can also find info on paragon on the office of fair trading. good luck and dont let them get away with this ."
"Same Problem here borrowed £4999 in 1994 got into trouble and went with Gregory pennington a debt management company to reduce the payments and freeze the interest which i thought had been done as i have been paying Penningtons every months since 1996. Checked up last month only to find that Paragon had not stopped the interest but also added compound interest on the arrears the result being they now want £17,000 when i have already paid them £12,000 in payments. Help Pleaseeeeeeeeeeeeeeeeeeeeeeeee"
Paragon Website -
"Welcome to Paragon Personal Finance, one of the leading finance providers in the UK – you’re now just a few clicks away from an easier financial life. If you need financial help for home improvements, a new car, debt consolidation or those special events in life, such as weddings or big celebrations, you're in the right place. We’ll apply our specialist experience and expertise to your individual requirements, giving you the help and service you need. We’re a FISA (Finance Industry Standards Association) approved lender and we’re also a member of the FLA (Finance & Leasing Association). So we come well accredited in financial solutions.We’ve a whole host of secured loan products to suit most circumstances. Have a browse through our website and we’re sure we'll find the right loan for you." From the Paragon website - http://www.paragon-finance.co.uk/
I especially like the bit "a few clicks away from an easier financial life.".
I especially like the bit "a few clicks away from an easier financial life.".
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