Citizens Advice Bureau

[Derek]

Do people feel that the CAB in Leyland are providing a service to the community

[Martin]

I didn't know that there was one in Leyland. I used the Preston branch about 5 years ago and they were very good. I had a lot of debt at the time and didn't know what to do. They helped me to deal with the greedy credit companies and put me on the right track.
Is the Leyland CAB part time?

[noel]

I used it once and found it useful enough to allow me to complain to David Borrows about the consumer credit act how it favoured the loan companies . 5 years later I'm still waiting for his reply.
Having had debt once I feel very angry about how loan companies can charge penalties for early settlement. In my instance I repaid £1000 of a £2,500 loan then asked for an early settlement figure . The figure was for more than the original loan due to the 1984 consumer credit act ( I think that's what the CAB representative quoted) from memory it was about £2,800, so taking out a loan of £2,500 over 4 years cost me £3,800 after 1 year, 50% interest.

[Derek]

its open full time all week

[David]

Noel; Sounds like your loan was with the Mafia ?? 50% wow!

[noel]

No David it was with First National and is quite a common thing with loan companies. You sign an agreement for 3,4,5 maybe more years and if you settle early the company claims for "lost interest"
ie if you settle a 5 year loan after 1 year say, they claim to have lost 4 years interest payments add that on to the outstanding sum and grant a derisory rebate for early payment.
I'm disappointed our Mr Borrows showed no interest whatsoever in raising this matter in the house of commons and not surprised.
I calculated the 50% figure by the way, the loan was taken out at 15% I think but repaying 3750 on a 2500 loan over 12 months gives the 50% figure.