debt management company fees -£350 help please

greenbee1

My daughters account was passed to a debt management company( Credit style ltd) by VW finance in February for being £384 in arrears. To cut a long story short she entered into an arrangement with them over a 6 month period to pay £280 per month to cover the arrears and her £129.87 a month regular payment. She has now done this for 5 months so her debt to VW has now been cleared and she is up to date -part of the last payment and remaining( August) payment is to pay Credit style fees of £350. I have looked and called every where to see if there is a limit as to what these companies can charge. She is 21 and completing an NHS apprentiship and earning £95 per week so can really ill afford these fees - are there any rules ? is there any negotiation in relation to unreasonable charges compared with her MONTHLY income of £380 .
ANY HELP PLEASE.
I have spoken to VW finance today and she has arrears now to date of £48.83 - the last payment we made to credit style was on the 28th of july - this payment has still not hit her account at VW.
So in effect she paid credit style £280 on the 28th of july _
£48.83 of this will clear the arrears + £129.87 her monthly payment = £178.70 bringing the account up to date leaving the remaining £101.30 towards their fees !! and the end of this month she has to pay another £249 to them being the remainder of their fees. Can they charge £350 on a 6 month payment agreement when she is on such a low income. Is there anything we can do or can they just charge what they like.
Thank you

RAS

Hi

is this hire purchase or a car loan?

greenbee1

Hi
hire purchase

RAS

Have you got a copy of the terms and conditions?

greenbee1

Hi yes i do

RAS

Read it very carefully and it will tell you exactly what charges they can make. If the charges are not listed in the T&Cs then you can challenge them.

chanz4

"

If you do not pay an amount which is due to us under the credit agreement in full and on time,
or otherwise breach this Agreement, we will charge you:
- Interest charges at the rate of interest shown above of 14.78% are calculated daily on the
balance overdue, and added to that total balance on the last day of each month.
- £25 for each reminder letter, notice or demand we make as a result;
- our reasonable costs and expenses of tracing you, tracing the Vehicle, and enforcing or
attempting to enforce our rights under the credit agreement, and /or caused by your breach,

including collection costs, repair costs, storage"

greenbee1

RAS wrote: »

Read it very carefully and it will tell you exactly what charges they can make. If the charges are not listed in the T&Cs then you can challenge them.

It is very vague - I did ask VW about what credit style could charge. I presume VW will pay credit style a fee so do they get paid from us and VW? VW told me to refer to key information on the hp agreement which says -

you must pay to us interest on any overdue payment (until such a time as it is paid) at the rate of interest shown.
You must pay us our expenses and costs of recovering or trying to recover the vehicle ( plus an admin charge of £100). You must also pay our costs of storing and selling the vehicle tracing you and the resulting legal costs. If this agreement is terminated you must also pay us damages as detailed in term 11.5 of this agreement.You must pay us £25 for each unpaid or cancelled repayment and for each reminder , demand or notice we make on you.
Other charges may be payable and are referred to in term 3 of this agreement. ( these are the same as above)

It is pretty vague really. thanks for your help on this. She had just arrears on the account ( no admin charges ) she had just missed 3 payments.

greenbee1

chanz4 wrote: »

"

If you do not pay an amount which is due to us under the credit agreement in full and on time,
or otherwise breach this Agreement, we will charge you:
- Interest charges at the rate of interest shown above of 14.78% are calculated daily on the
balance overdue, and added to that total balance on the last day of each month.
- £25 for each reminder letter, notice or demand we make as a result;
- our reasonable costs and expenses of tracing you, tracing the Vehicle, and enforcing or
attempting to enforce our rights under the credit agreement, and /or caused by your breach,

including collection costs, repair costs, storage"

There is no mention of reasonable costs - i appreciate they have costs these are unreasonable and extortionate. If it said this in her credit agreement i would challenge as they are unreasonable.

nottoolate

charges must not be excessive and must be based on actual and necessary costs

they must also not be disproportionate compared with the actual debt

greenbee1

nottoolate wrote: »

charges must not be excessive and must be based on actual and necessary costs

they must also not be disproportionate compared with the actual debt

So the originaal debt was £384 in arrears for which they have charged her £350 for a 6 month arrangement - 1 1/2 months of the 6month arrangement is fees is this disproprotionate ?