Clode Retail/V12 finance 1.6% "processing fee"!

the_hatter_2

Hi all,

I've been reading about this processing fee on the forums I thought I would post my recent (today) success with getting this fee removed from my settlement figure.

I called this morning to settle my account which is outside of it's 0% period and charging sick interest (naughty me, but I had some unexpected expenses when the 0% payment date came round!). I queried this charge because I couldn't see any mention of it on my credit agreement, the CSR told me that it would be in the Key Information section. I read through this and could not see the processing charge listed anywhere in that section. The CSR told me that she would check my agreement and see if I am mistaken (AKA telling porkies), since I don't trust these companies any further than I can smell them I offered to fax a copy of my credit agreement to them for their inspection.

Credit agreement faxed with a short cover letter, I actually faxed the copy signed by both myself and Clode retail just to ensure that there was no question of authenticity of the credit agreement.... I waited twenty minutes then called back, asked to speak to the same CSR again. The CSR asked me to hold while they discussed this with their supervisor/manager/palm whatever.

Anyway to cut this long story short the line I was given was: "credit agreements prior to April 2008 do not have this fee so you do not have to pay it". Account paid off (minus 1.6% of settlement figure), very happy indeed! :beer: :beer:

My advise to anybody wanted to settle a Clode Retail agreement is to check your copy before calling them, if you see no mention of a 1.6% handling charge for non-direct debit payments in the Key Information section then you should be in good steed to have this fee waived.

I hope this post is useful, and good luck!:T

clarence83_2

Annoying, our account was created in June 08 so just missed the boat for getting the fee waived!

It was only about £20 anyway, but still I thought it was cheeky! Well done on sticking to your guns though and getting the fee taken off. How much did you save?

the_hatter_2

clarence83 wrote: »

How much did you save?

Only £15 but it was the principle of the thing really. If it had been in my agreement I'd have (un)happily paid it, but as they were trying to catch me out I figured I should go for it

fluffymitten

I'm just experiencing the same problem and am wondering about the legality of the charge.

In the Key Information section, it does say on my agreement 1.6% of payment value for non-direct debit payments (to include debit cards, cash and cheques). That would be fair except, when I made enquiries today, they will only accept debit card or cheque if I want to settle before the 0% period expires. I offered to pay by direct bank transfer but it was point blank refused.

Can anyone give me any suggestions where I can look into this further?

I'm not due to pay until middle of October but I'm pleased I started to look into this now so I have a couple of months to argue the case!

EDIT:
Via the Consumer Direct website, I have read up on the Unfair Terms in Consumer Contracts Regulations and have lodged an enquiry with Consumer Direct asking for advice. I will post up once I get a response from them.

AJStevens

fluffymitten, did you get anywhere?

I had one of the pre-April 2008 agreements, and after some battling, they "waived" the fee if I paid it off within 5 days. Which I took them up on and was glad to be shot of them. Not having any problems like that with HFC through Dixons to buy Plasma TVs.

Unfortunately, all the online Computer related shops seem to use V12finance aka Clode Retail Finance for their interest free 6/9/12 month finance plans, but non of them mention the payment processing fee, only the arrangement fee, which I'm sure isn't right. Not sure how v12/Clode appeared to have cornered the market there, but I'd imagine they don't get any return customers, and most likely won't until they remove that fee.

By the sounds of it, they've at least added this fee to the actual agreement on paperwork post-April 2008?

Still, they don't have a good enough reason for the fee, the arrangment fee should cover admin fees, and how can an admin fee be a percentage of the loan? Like so many have pointed out, it's mere pence to clear a cheque!

Also, the lack of payment by BACS (at all) or Direct Debit (BEFORE the end of the interest free period) is surely just so they CAN get a 1.6% additionally out of you, there's no reason they couldn't accept payment via that method, as I've done with other companies before.

Guess I'll have to do it the old fashioned way... save up

Fozmeister

Hi - First Post - EVER !!

Anyways, My wife & I have been stung by this as well -
Quick story being -
Wanted Big telly - saw big telly - Bought big Telly
Shop we dealt with was via V12 Finance - note the "finance" bit, V12 supply the finance and we agreed to the interst free period with their £45 "Admin" charge.
VERY small printed T&C's come through from CLODE retail ? to sign, which we did ** BUT OBVIOUSLY DID NOT READ THEM CLOSE ENOUGH **.
1 year later, reminder comes through from CLODE retail for the final amount borrowed PLUS the 1.6% NON Direct Debit processing charge !!
We have tried every which way to try to pay the final amount without getting stung for the 1.6% processing charge with CLODE retail -
Full Amount by Direct Debit - Clode cant change a D/D amount / duration
and
Clode won't / can't supply bank account details for a direct cash transfer stating they have a holding account which does not have that facility.

I did get out of them that they bank with Barclays - who of course would not supply bank details of CLODE but did say that just about any of their' accounts are able to accept a bank transfer electronically !!

So, we're gonna leave it at that, as its left very sour taste and will never ever recommend V12 or Clode retail to anyone, but I suppose we should have read the Ts & Cs.............................................................

Foz