M and S Loan error

Neill1200

We have just taken a loan with M and S. I recieved the contract stating how much they would take each month , total amount repayable and the Apr.
The first payment they took was £50 more than the contract said. I spoke to MS about this and they said it was the cost of the courier to deliver the cheque to our home address. They have never informed us that there was a cost for this service ,so now the info on the contract is all wrong ,the total amount payable and also the APr. Could I seek the have the loan written off in light of this or just my £50 returned or neither. I have had nothing in writing about a £50 arrangement fee

~Brock~

It must have been a very heavy cheque. I use a courier that will deliver a 10kg box anywhere in the country for approx £20 :rolleyes:

If there really is no mention of this then get in touch with them and ask them how they informed you of this. If they cannot answer then yes - ask for a refund.

As for making the agreement unenforceable - I doubt it - but it could and possibly should the the subject of a formal complaint.

Neill1200

M and S said that they told us about the charge over the phone when they told us a courier was bringing the cheque. I dispute this and even if they did should the contract contain all the monies they will be charging us. They have technically quoted us an Inaccurate APR which is against the law

~Brock~

Neill1200 wrote: »

M and S said that they told us about the charge over the phone when they told us a courier was bringing the cheque. I dispute this and even if they did should the contract contain all the monies they will be charging us. They have technically quoted us an Inaccurate APR which is against the law

I had a similar service ages ago (mid 1990's) from a loan provider and although I knew there was a charge, it was treated as a separate (and optional) service that was payable for separately and therefore not added to the terms of the loan.

Perhaps they could supply you with a copy of the call recording to prove or deny their claim?

jonesMUFCforever

If you don't want to accept the fee then ask them to close the loan and return their funds. If it is outside the cooling off period you will be charged interest only on the amount borrowed.
You are then free to go elsewhere for the loan - who knows if you will be offered the same rate or better at another lender though?

Neill1200

jonesMUFCforever wrote: »

If you don't want to accept the fee then ask them to close the loan and return their funds. If it is outside the cooling off period you will be charged interest only on the amount borrowed.
You are then free to go elsewhere for the loan - who knows if you will be offered the same rate or better at another lender though?

Thats not very helpful advice , As Ive made the first payment it means that Ive had the loan for over a month , and That money is not just set in a bank account , it was to pay for my daughters dental treatment and surgery, so giving it back is not an option. People borrow money for a reason ,not to just leave it laying around
Anyway , the point is , they sprung the additional payment on me a month after I took the loan out . This additional amount makes the credit agreement have all the wrong sums on it and the wrong APR , they did not treat this as a seperate payment to the courier , they have added this into the loan , what if they had charged me £500 for the courier , it was a charge I had no control or choice over , that cant be right.

asandwhen

Neill1200 wrote: »

Thats not very helpful advice , As Ive made the first payment it means that Ive had the loan for over a month , and That money is not just set in a bank account , it was to pay for my daughters dental treatment and surgery, so giving it back is not an option. People borrow money for a reason ,not to just leave it laying around
Anyway , the point is , they sprung the additional payment on me a month after I took the loan out . This additional amount makes the credit agreement have all the wrong sums on it and the wrong APR , they did not treat this as a seperate payment to the courier , they have added this into the loan , what if they had charged me £500 for the courier , it was a charge I had no control or choice over , that cant be right.

Im sorry but this is just silly - M&S are not going to write off this loan because you are disputing if they told you about a courier charge. This will have definately been a seperate charge you have been quoted in the agreement the price for the loan to which you have agreed and signed there is no disputing this. The part you are disputing is an optional extra charge for the courier. at best you may be able to argue that you wasnt made aware of this and may get a refund.

Extant

As above, yes this is silly and you are, frankly, a terrible person for thinking you could effectively scam this money out of them.

What you will likely find is that your loan agreement is perfectly fine, they just claimed the extra £50 for the courier with your first payment.

Oh, and by the way - a difference in payments to the amount or schedule given on a loan agreement doesn't invalidate the agreement. Otherwise, everyone who ever dips into arrears and repays it in other installments would be getting free loans.

System

i thought most lenders charges a similar fee even when the money is electronically transferred.

jonesMUFCforever

Let Neill have his say.It won't change anything and as he is not in a position to return the funds or looks like he is going to get an alternative loan he can spew his venom on here - he'll feel better and then life can move on.

silentscream999

you should have told them to transfer the money direct into your bank account instead of sending a cheque via courier costing 50 quid.

bloody rip off! Not surprised by M&S. they are idiots