Help Please With Dodgy Credit Agreement, PPI & Charges

shimeld52

In October 2004 I took out a new loan with BCT for a sum of £5,000.00 which was used to pay off an existing hire purchase agreement with the same company leaving me with £1,990.02 cash back to use as I wish. PPI insurance was added to this loan upfront and this cost £762.50. (I am currently trying to re-claim this back as miss-sold.) This brings the total borrowed to £5,762.50. This does not include interest at an APR of 23.8.

The period of the loan was 4 years and this expired in October last year.

In March 2006 I was made redundant from a job which I had been in for just over 6 months and tried to claim on the PPI but this was unsuccessful due to the fact that my employer said I had been on a trial period when I was made redundant. From memory the insurance company stated that there was a clause in the policy excluding a claim when in an employer’s trial period because it was classified as temporary work so there was no payout to BCT.

Following this I put all my credit accounts in the hands of Pay Plan, a debt management company who negotiated with all my creditors to freeze interest and accept reduced payments. This arrangement carried on for 11 months when I got a job and I was able to resume the normal payment instalments with my creditors.

In the eyes of BCT while having my affairs managed by Pay Plan I had accrued arrears on the account because I was paying reduced payments, however they charged accumulated interest on the arrears contrary to their agreement not to.

I became aware that the credit agreement with BCT had expired in October 2008 when I called them last month and all they were collecting now are the arrears which they claim is £2,275.83 including late payment charges and letter charges. They want this figure back.

I have informed them that I intend to challenge the arrears, late payment charges, PPI and the validity of the agreement.

Attached to this posting are 2 spreadsheets in a PDF file which show the payments and charges over the period. The figures are taken from the latest statement which I requested from them under a SAR and you will see that if I am successful they will owe me £595.80 before any interest is added.

The credit agreement, terms, and ballance sheets are posted here just put http:// in front of the addresses.

i481.photobucket.com/albums/r...Ag1_resize.jpg
i481.photobucket.com/albums/r...BCT/img003.jpg
i481.photobucket.com/albums/rr173/mediaseller/BCT2/BCTStatement_p02.jpg
i481.photobucket.com/albums/rr173/mediaseller/BCT2/BCTStatement_p01.jpg

My questions are;

1.Is this agreement and its terms enforceable by a court and if not, why not?

2.I plan to negotiate with them if I can’t challenge the agreement so what would you offer them? I thought around zero pounds if they agree otherwise I will carry on with the PPI claim and start a claim up for the charges, meaning they would owe me if I’m successful.

3.What words do I use to say that I will not be paying any more instalments until a resolution is reached? (In fact am I entitled to stop paying while a dispute is in process)?

Your assistance would be greatly appreciated since I have to reply to them by the end of business on Monday October 5th 2009.

Many thanks in advance.
Shimeld52

P.S. They have issued a default notice prior to me raising the dispute and the issued one a year or two ago.