GE Money Holiday Ownership Accounts

Kyham14

Thought I'd stick this post down as a warning to anyone thinking of getting into this situation. Earlier this year my husband and I decided to purchase a holiday ownership (simialr to a timeshare type thing). At the time we were abroad and being pushed to sign on the dotted line. I'm not here to debate the merits of holiday ownership but what I'd like to warn people about is the ridiculous credit agreement we happended to sign at the time.
So we could take advantage of a special offer with the holiday company, we agreed to borrow the money through GE Money (although sold to us by the holiday company representatives - not GE Money themselves). We stated that it was our intention to then repay the loan once we could sort something out (and when we were back in England as we were on holiday at the time).
So signed an agreement to borrow £7995 (plus £65 acceptance fee). Several months later having paid each monthly payment by direct debit on time (total paid so far = £768) we asked for a settlement figure. Imagine my amazement when the settlement figure arrived and we actually owed more than we had borrowed - £8291 to be exact.
I rang them up to complain and they just kept repeating that it was all down in the credit agreement but for goodness sake - who reads the small print never mind understands it. Plus the holiday rep guys just wanted us to sign - they never fully explained the agreement to us.
Needless to say I feel throughly ripped off and won't ever fall for this one again. Now I'm wondering if we chould pay off a large lump sum leaving a small amount outstanding and then pay that off at a slightly later date to avoid all this interest - any advice appreciated but please don't tell me how stupid we've been - believe me we know!

AndyR_3

Kyham14 wrote:

but for goodness sake - who reads the small print

Generally, people who don't want to get ripped off.

Dammam

I can't offer any advive to you I'm afraid - I think you're stuck with the situation now.

However, if your post encourages just one person to avoid a similar situation then it will have done some good. You can feel spiritually richer (and wiser) if not financially. Probably no consolation, I know.

jamesd

The redemption calculation is now specified by law, not one they are able to create themselves, though they do have some options. It'll be for a date 28 days after your request and will probably include the outstanding balance plus interest for two months if the original loan term was for a year or more.

It is possible to pay off a full, complete or overpayment lump sum without asking for a redemption calculation. If you do that the redemption date is the date of the payment and that can be cheaper. Any overpayment will be rebated once the calculation has been performed.

It appears that you probably weren't ripped off but instead found out the effect of the normal early repayment calculation if you repay near the start of the loan term. Hard to say without knowing the specifics of the monthly payments, term and interest rate but the amount appears to reasonably match what the law requires.

This assumes that it's governed by English law, which it might not be because it was taken out in a different jurisdiction.

silvercar

my GE loan states that the months interest penalty charged for early redemption is calculated on the balance outstanding one working day prior to the redemption.

AndyR_3

I'm not 100% sure, but I have a feeling that, since the paperwork was not signed within the United Kingdom, the Consumer Credit Act and other UK legislation may not apply. Does anyone know for sure? OP, does the agreement you signed mention the CCA, out of interest?