Black Horse interest free loan period

Am brand new to this but ..here goes..
Took out a c£10,000 loan through Wickes with Black Horse Finance. the deal was six monthly payments then all interest refunded when you cleared the balance after six months.. or continue making payments at about 29% apr.
We were assured that BHF would write to us in good time before the 'due date' so that we could clear the o/s balance with funds that we had available.
We didn't receive any letter from BHF so i rang them, as it turns out just after the due date to be told that as we had not settled the account by the given day we were now tied in tothe interest agreement!!
Went mad at BHF who refused to budge so i contacted the Financial Ombudsman- what a very helpful/professional set up!
They stated that similar incidents were common place and i was wondering how many others have fallen foul of a non-existant letter as we have??
In case you're still awake/wondering- it cost about £900 to buy us out of the agreement and i have now formally complained to the Ombudsman regarding BHF.
Partly my fault i know, we should have been more aware of the date in question but is this really responsible lending on behalf of BHF- i think not!!!!

Should ALL letters from finance companies re existing borrowing be sent 'recorded'?? 6 votes

Yes- this is responsible practise and protects both parties.
50%
churchratI_know_my_ABC_and_my_CMYK11187512 3 votes
No- this is unnecessary and serves no purpose
50%
jpwjpwiolanthe07PROLIANT 3 votes

Comments

  • iolanthe07
    iolanthe07 Posts: 5,493 Forumite
    No- this is unnecessary and serves no purpose
    Your fault, really. I have entered into these kinds of agreements in the past and have always written a reminder in red in my diary well before the due date. They rely on people forgetting, but it is an expensive lesson. I don't think the ombudsman will take much interest, tbh.
    I used to think that good grammar is important, but now I know that good wine is importanter.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    hope you get somewhere... do keep us informed of the result.
  • jpwjpw
    jpwjpw Posts: 272 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    edited 10 August 2009 at 8:35PM
    No- this is unnecessary and serves no purpose
    I know this sounds harsh, the way these deals work have always been obvious to me. They have to make money somehow so they rely on people not clearing the balance. It's very similar to other deals like mobile cashback schemes and balance transfers on credit cards etc...

    Its up to you to read the contract and remember the dates to clear the credit by. Of course, the APR will be much higher to subsidise the people who do pay the money back before the 0% offer ends.

    "We were assured that BHF would write to us in good time before the 'due date' "

    That's commission based selling for you, if its not in the contract they are talking rubbish
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