How much can a debt collector add to a debt?

leeanne32

if this post is on wrong place, sorry.

I took out a loan in 2004 with welocme finance, I deafaulted and it was passed to hfo services. Since June 2009 i have paid 30 pound a month with out default.

They had my back card detaisl and took payments from my account every month.

I lost my bank card last month so when they attempted to take the money this month is was declined. I have received a letter, charges of 24 pound added and to call then asap.

My net balance in 2009 was £2290

Now it is £1720

and £ 1134 accruing interest???? what is this, am i paying back more than i should?? never heard of this interest thing before/ they have never mentioned it??

Tried to call them but its an answering machine and there website is unavailable......

Little confused what to do any advice really appreciated

FTW

leeanne32 wrote: »

if this post is on wrong place, sorry.

I took out a loan in 2004 with welocme finance, I deafaulted and it was passed to hfo services. Since June 2009 i have paid 30 pound a month with out default.

They had my back card detaisl and took payments from my account every month.

I lost my bank card last month so when they attempted to take the money this month is was declined. I have received a letter, charges of 24 pound added and to call then asap.

My net balance in 2009 was £2290

Now it is £1720

and £ 1134 accruing interest???? what is this, am i paying back more than i should?? never heard of this interest thing before/ they have never mentioned it??

Tried to call them but its an answering machine and there website is unavailable......

Little confused what to do any advice really appreciated

CCA them. Provide no signatures to them, send the letter recorded delivery. The fact that you've been making payments makes no difference - you have a right to see that paperwork at any time.

Being a Welcome agreement (and a 7 year old one at that!), it's doubtful that HFO will be able to supply a copy of it.

If they can't, that means they cannot substantiate their legal right to collect on that debt - therefore, no obligation on your part to pay them at all.

Unless the original agreement states that interest can be added after account closure, HFO should not be imposing their own rate of interest - that's fraud on their part.

Moreso if they're putting their own rate of interest on an account that they cannot prove they have a legal right to collect on.

leeanne32

Sorry to seen so dumb but what is a CCA and how do i do one???

Thanks

L

FTW

leeanne32 wrote: »

Sorry to seen so dumb but what is a CCA and how do i do one???

Thanks

L

CCA stands for Consumer Credit Act. When the term's used on threads, it means a request made to a company that's chasing a debt.

If the debt in question is covered by the Consumer Credit Act 1974 (loans are), then the customer has the right, at any time, to ask any company pursuing that debt to prove their legal right to collect on it.

You'd need to send a £1 postal order (do NOT use cheques) with such a request, but it's well worth the money. And keep the postal order number written down, so you'll be able to track if it's been cashed or not.

If you google 'cca request', you'll find more than enough information and template letters you can use against HFO.

leeanne32

Hi,, another querie.

I have checked my credit report today, it states that my welcome finance loan was settled back in 2005. Are they allowed to sell it on if its settled? Getting to me now always happens on a weekend....lol

FTW

leeanne32 wrote: »

Hi,, another querie.

I have checked my credit report today, it states that my welcome finance loan was settled back in 2005. Are they allowed to sell it on if its settled? Getting to me now always happens on a weekend....lol

If it's settled, no need to pay HFO. Cease all payments immediately.

fatbelly

leeanne32 wrote: »

Hi,, another querie.

I have checked my credit report today, it states that my welcome finance loan was settled back in 2005. Are they allowed to sell it on if its settled? Getting to me now always happens on a weekend....lol

Welcome will have marked it settled when they sold it.