HELP!!!!!!!! Think I'm being conned.

dori2o

I have, still..., a loan/HP agreement with HFC for a DVD player I bought in December 2002 for a total amount, including 4 year insurance of £233, which was suposed to be cleared over 4 year at a rate of £8 per month. (I was young and naiive).

I have missed a few payments and been charged for them (which I intend to claim back), but after receiving a statement I requested from them last week, which shows all payments, interest, PPI etc, they claim there is still a balance of £110.

Also, they sent me a settlement figure.......£206

So I have added together all the payments I have made and it comes to £373.

Now bear in mind that £8 x 12 x 4 = £384

Therefore I should owe £11.

As I say I have missed some payments, but I have also made extra payments to cover these.

They have charged me £90 in late payment fees, which I'm going to reclaim, and a £50 default fee, which I'm not sure if is claimable (Anyone?)

This is £140, so even if they are added to the £384, less what I have paid, is still less than £206 ( £384 + £140 = £524 - £373 = £151)

They also say that unless I start to pay them £10 per month to clear the balance, they will file another default.

I'm not sure this is right, and I don't want to pay them more than i think I owe (£11).

They have said, following my request tonight, albeit over the phone, that they wil send me a copy of my origional credit agreement, as they are also charging me PPI, which I don't think I asked for, but the CA will confirm that.

What do I do? (Apart from claiming the charges back)

beanielou

Think you need to wait & see the copy of the credit agreement to see what is in the terms aqnd conditions.
The PPI will have bumped up the cost as well.
Then take it from there.
HTH

jamesd

The Consumer Credit (Early Settlement) Regulations 2004 apply to this loan. There are three effective dates:

• For new loans taken out from 31 May 2005 they apply already.
• For existing loans taken out before 1 June 2005 they do not apply until:
  • 31st May 2007, if the agreement is for a term of 10 years or less
  • 31st May 2010, if the agreement is for a term of more than 10 years

Anyone with a loan for 10 years or less taken out before 31 May 2005 could ask for a settlement figure effective on 1 June 2007, specifying that you want that date so that the Consumer Credit (Early Settlement) Regulations 2004 will apply to the early repayment. Then you can work out whether it's better to pay now or wait.

The regulations specify how they can calculate interest, prohibiting them from using the rule of 78 which is more expensive for you. You are allowed to pick any settlement date you like.

The PPI probably added significantly to the cost so it's not surprising that you owe more than you expect.

Rafter

Some of the charges may well be valid.

They can clearly demonstrate they have incurred costs chasing you, filing defaults and other actions as a result of your non-payment.

Not sure why your settlement figure and outstanding loan are so far out though.

Good luck, but despite paying your total payments in full now, they are still perfectly within the rights of the agreement you signed and the law to charge you their reasonable costs for chasing you and filing defaults etc.

R.

iolanthe07

This just shows how important it is not to default, even on a trifling monthly payment. I have found HFC very good when I wanted to settle early - no fees at all - but their interest rates was high.

dori2o

Rafter wrote:

Some of the charges may well be valid.

They can clearly demonstrate they have incurred costs chasing you, filing defaults and other actions as a result of your non-payment.

Not sure why your settlement figure and outstanding loan are so far out though.

Good luck, but despite paying your total payments in full now, they are still perfectly within the rights of the agreement you signed and the law to charge you their reasonable costs for chasing you and filing defaults etc.

R.

They are entited to charge to recover their costs, but only if those costs are a true representation of their losses.

A claim can still be made, and more than likely won, simply because it is highly unlikely that HFC will come out and declare their actual costs.