Penalty Charges on loans...?

helspeg

Can someone confirm for definate whether banks can charge you missed payments on loans?
The reason I ask is that after repaying a loan for 2 years without ever receiving a statement against it I have just learn't today, from the loans department, that they do.
According to them I would have known about it as it would have been clearly noted/explained on the front page of the agreement I signed 2 years ago (which if it was I didn't see so I'll be checking tonight) and if it wasn't how would I know as I don't get a statement?
Including in the charges is a fixed fee £10 telephone call charge!!!!
Please, someone, confirm for definate whether they can do this or if it is another penalty charge bank scam ...

Credit-Crunched

helspeg wrote: »

Can someone confirm for definate whether banks can charge you missed payments on loans?
The reason I ask is that after repaying a loan for 2 years without ever receiving a statement against it I have just learn't today, from the loans department, that they do.
According to them I would have known about it as it would have been clearly noted/explained on the front page of the agreement I signed 2 years ago (which if it was I didn't see so I'll be checking tonight) and if it wasn't how would I know as I don't get a statement?
Including in the charges is a fixed fee £10 telephone call charge!!!!
Please, someone, confirm for definate whether they can do this or if it is another penalty charge bank scam ...

They can and rates are quite steep. Letters then phone calls then field visit in range of cost.

They should have provided you with a detail of costs when you took the loan, they can not charge you more than this.

You can request them to send you this also, may be worth it.

helspeg

Thanks for speedy reply.
As soon as I got off the call I phoned customer services and requested a complete statement showing all transactions since it opened.
What I don't understand is the loan is with the same bank as the account the money payment defaulted from. So I was charged £35 to my current account due to insufficient funds, then have to pay anything (as little as £10) within 2 weeks or I get charges onto my loan amount outstanding. So I'm potentially paying 2 fines against the same thing.
And with regards to a fixed fee of £10 for telephone calls that is in no way proportionate and I was clearly told today that until payment was made they cannot not stop the phone calls or even put a note on the account saying when payment would be made.
Very frustrating anyway.

Credit-Crunched

And with regards to a fixed fee of £10 for telephone calls that is in no way proportionate and I was clearly told today that until payment was made they cannot not stop the phone calls or even put a note on the account saying when payment would be made.
Very frustrating anyway.[/quote]

Utter nonsense, the lender has to 'help' you as much as they can. You have contacted them and as such they should help set up a payment plan and not put more charges on your account.

FSA guidlelines state lenders have to treat their customers fairly, i would contact them again and advise that you want to pay back and with their co-operation you want to set up a payment plan, any further calls with charges will hamper your ability to pay.
Be firm (but not awkward) with them as they seem to bully quite easily.