Urgent Advice needed trying to Settle a credit agreement

Hi

I'm after some advice regarding a finance agreement that i am trying to settle and pay off and i'm being faced with whopping interest charges.

We bought a sofa last august 2006 from Land of Leather, the promotion was 12mths interest free and then 3 yrs @ 30% apr, wasnt really an issue, we were paying the whole thing off after 12mths. we declined the payment protection. we signed the agreement with open & direct retails services. total to be paid was £2047.00

12mths later..

I received a call a few weeks back from a company called "creation finance ltd" asking me to confirm some security questions, as i'd never heard of this company i refused to give them any details, and ended the call.

I knew that it was coming up to the 12mths so started to hunt for the paperwork which i found last night. On the cover letter, it mentions a special offer date of 29/08/07 and that no further reminder of the special offer date will be sent. it gave options on how to pay and also online. i tried to access this last night to pay the balance and got sent to a website creation finance and no way to pay online.

I called them first thing this morning for a settlement figure, and the figure they gave me was a whopping £3550.11 which is £1532.11 more than the initial amount. when i asked for a breakdown, i was told that they had applied a whole years interest of £874.01 and also payment protection of £658.10 which we had declined.

When we initially signed up for this, there was no mention to having penalties to pay if we defaulted on this special offer date, we werent even aware that it was imperative that it be paid by this date to avoid further charges.

i really need some help on where I stand.

also, the sofa wasnt actually delivered until some weeks later.

any help would be greatly received.