Collection Activity Charge

hyndlegs

Hi,

I am looking through by father in laws finances and have noticed that he has a lot of charges on his loan for "Collection Activity Charge" as far as I am aware this appears to be a charge when he has missed a payment and they have chased him up. The charge is between £25 & £30 a go and to date I have seen £400+ !! I am sure its all ok but just wondering if this charge is one that they are allowed to charge as £25 per letter seems rather excessive ! Many Thanks in advance.

Rafter

It is a way of describing a 'late payment charge' as a charge for a service.

As I imagine this change has happened since your FIL took out the loan, and in response to the current test case and interim rulings in the high court, it is worth lodging a claim to have these and any other bank charges refunded using the template letters on this and other sites.

If you haven't already, worth posting a 'statement of affairs' for your FIL on the debt free wannabe site to get any ideas there - it is also a useful document for talking with citizens advice or other agencies about debt management.

Good luck

R.

http://www.makesenseofcards.com/soacalc.html

hyndlegs

Rafter - much appreceiated the advice, I will start the ball rolling with the bank charges letters. Thanks