Northern Rock - requesting admin fees after payment of settlement figure

onthemend

Hello All.

Ive recently been able to settle a 5 year loan early. I requested a settlement figure in mid april, received written confirmation of the amount on 20th April, i then paid that amount. Then received written confirmation that the account was settled and N.Rock were in process of closing account.

Last week received a letter dated 16th May 06 requesting £30 admin fee to cover an unpaid direct debit from end of March!!.

I do not deny that the direct debit was unpaid, however the fact that I requested a settlement figure in mid April and have written confirmation of the amount, surely they cannot request a further £30 after all this time?

Ive written back not accepting their request, what else can I do?

Robert_Sterling

They may have calculated the settlement figure on the assumption that the further £30 would have been received before the settlement date.

Rafter

An 'unpaid direct debit' fee sounds rather like a 'penalty fee'? Did you cancel the direct debit for the loan payment while the settlement was going on?

Regardless, the £30 is out of all proportion to the costs to them and is therefore illegal.

I suggest you call them and point out the recent OFT ruling on credit cards about penalty fees and see if they want to take you to court to recover their potentially illegal fee!

R.