6 months interest free credit

shimmy_3

I have caughtup in the 6months interest free credit option. I thought I have paid the money within the interest free period by sending a cheque. 2 months later i had a letter from the finance company stating that they couldn't get any money from the bank and that I have been charged further £25, when I inquired about the letter I found out that they haven't received the cheque to finalise the free credit period and now they sent me a settlement figure with over £900 on top of the interest free option. Naturally I am devastated, I am one of those who never check account to my own fault, I have called and spoke to the finance company but they said that I have to pay the settlement figure with this huge interest (chrged from day one). I have no proof of posting the letter, didn't call them to check if they have received it, checked with bank to see if it was cashed, but no, so I am in real misery as to what to do now.

Can someone advice me as to what to do next. Appreciate any advice

grumbler

shimmy wrote:

...i had a letter from the finance company stating that they couldn't get any money from the bank ..., when I inquired about the letter I found out that they haven't received the cheque...

For me it is not clear from your post what actually happened ...

Rafter

If you didn't pay the balance by the due date you are rather stuck by the terms of the agreement you originally signed.

I'm not sure they can charge you interest for the whole agreement if you settle now though - I thought they could only charge a 1 month penalty, although you will have to pay interest from the start of the agreement if you missed the window to pay in full.

R.

shimmy_3

grumbler wrote:

For me it is not clear from your post what actually happened ...

when I signed for the interest free option I also haveto signup for direct debit payment should I fail to pay by the free period date. So they started to deduct money on the 7th month which I fail to notice until the letter arrived to inform me that they couldn't get the monthly payment.

hope this explain

Astaroth

So you had a credit agreement giving you the item interest free if you paid it off within the first 6 months. If you failed to pay it off in these terms you would have longer to pay but interest would be back dated from day 1 of the loan (a typical Comet type agreement).

you sent a cheque but it was lost in the post. You didnt check to ensure it had been received/ cleared etc and the 6 months is now up so you have to pay the backdated interest etc?

If this is the sequence of events correctly it seems you will just need to pay up (and make sure you cancel the cheque in case it does ever turn up)

canny_yorkshireman_2

this is a nasty shock and from my experience credit agreements of this type are pretty watertight with penalties.Would have been wise to make a electronic transaction straight to the finance company which would have ensured payment and is traceable for any discrepencies that can arise.
hth

grumbler

canny_yorkshireman wrote:

...Would have been wise to make a electronic transaction straight to the finance company...

...or to use at least Recorded Signed For post for sending such important cheque ...

shimmy_3

Thank you all for your replies, it looks like that I have no choice but to pay without any delay otherwise it will incure further interest.
On the note on recorded delivary, I lost 2 passports on regitered post few years back, post office had all the record of receiving it but it never reached passport office. So nothing is safe.

michaels

Interesting conflict of interest here for the finance company on receiving your cheque not recorded - cash it and they make a loss on the free credit period, 'lose it' and they make a huge profit. No hlep to you I know but worth thinking about for anyone else taking up these type of offers...

merch

Interesting indeed... If a cheque I had sent out hadn't been cashed within 2-3 weeks I would be chasing it up, not leaving it unresolved.

missile

shimmy wrote:

I lost 2 passports on regitered post few years back, post office had all the record of receiving it but it never reached passport office. So nothing is safe.

There is a roaring trade in iddentity theft and "only" 10% of mail goes missing. IMHO it is not wise to send your passport anywhere.