ADVICE on CPA and loans

[Lee.86]

Hi

Please any useful advice will be appreciated. especially if it can be referenced from the CPA.

A few years ago, my wife had a study loan which needed to be urgently paid up, her resolve was to take a loan from a bank (Whilst she just got employed), and just continue the loan repayment.

two years later, unfortunately her time was up and contract was refused renewal, so now shes unemployed and had a large amount to repay, not to mention we had a new born on the way. we approached the bank and tried to negotiate something but got nowhere.

Long story short, it's been just over a year now and the case has been handed over to MBDCS, who had made payment arrangements. However the loan has not been frozen or any real adjustments made from their side, so the interest has caused the loan amount to almost double in that period.
I've tried speaking to the consultants, who are just about, "give us the money', and have no understanding that at this rate, the loan will never be paid up. I'm currently battling with the bank for statements to reflect how much has been paid since, and how the roll over amount is increasing so rapidly on a monthly basis.

When requesting statements, they're playing a game of tennis with us, sending us to and fro, from Bank to collection service.

Anything??? Anyone???

 

[The_Ogre]

Morally, just continue to pay the bank you have no agreement in place with the debt collector. Legally, if you were to wait another year without paying the debt will prescribe (IANAL, but as far as I understand that's how it works), but then you'll have defaults, judgements, etc against your name which isn't exactly a great thing.

 

[SinghDude]

Its a difficult situation with no easy fix.


Any route, either engaging a debt counselor or trying to talk to the bank will just incur more debt. interest fees,and other fees will almost always cause the debt to compound.



If there is a family member or other benefactor that can assist, try and negotiate a once of settlement with the bank. As long as you have the outstanding debt, it will continue building interest and other charges until paid off.

 

[bboy]

Was there no insurance on the loan, especially for if your wife lost her job?

 

[Lee.86]

Thanks for the responses guys.
Ying Yang, We actually have been paying the required amount that was agreed to with the debt collection agency. Wouldn't that actually affect it from becoming prescribed debt?

Bboy, i am trying to get a hold of the original contract, to check on the insurance. 'til now, I've had no luck, they just tend to lose interest in our queries.