7 April 2006
Consumers of a UK loan provider are being urged to check their contracts after it emerged that some of its customers owed far more than they realised and had been lumbered with huge debts.
The plea from Which? is aimed at customers who took out a loan with London North Securities or its subsidiary company, Broadwick Financial Services.
One consumer finance solicitor described the methods used by London North Securities as "one of the worst practices I have encountered".
In one case, a man from Nottingham borrowed £7,700 in 1991 and, despite having paid back £28,000, still owed the firm £120,000.
Thousands of pounds of interest had built up on an upfront fee of just £259.
Neil Fowler, editor of the publication, said: "We're concerned that the cases we've come across are just the tip of the iceberg. There may be many more people who have no idea that they owe thousands of pounds more than their original loan.
"We hope the new Consumer Credit Act will help customers challenge any unfair terms linked to credit contracts."
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