End of Loan Admin Charges!! Help wanted Please!!

SarahAnne1311

Hi all,
I hope someone can help with my problem...

My partner is currently near the end of a financial agreement with Santander Consumer Finance and has received a letter stating he has to make his final payment in March and also pay an admin charge of £300!!!
After reading a different thread posted last August, a forum member mentioned that if the agreement was paid in full before the last month of the agreement end date then the admin charge is defaulted and you dont pay it. After speaking to Santander they totally dismissed this and told me this is incorrect and countless of when the payment is made the admin charges still stand!!
My partner took out the finance agreement when Santander Consumer Finance were GE Money, does that make a difference?
Can anyone help or give us some advice of what to do next? We are having a copy of the agreement sent to us but other than that Santander have said they cannot help.

Thanks in advance, any advice is greatly appreciated!!

Sarah Anne

dtsazza

What does the loan agreement say about the terms under which the admin charges will apply?

Ultimately that will set out in black and white the conditions under which the charge applies, so without that it's very difficult to give more specific advice.

SarahAnne1311

We are awaiting a copy of the agreement which was sent out today. As soon as we get that il put it on here. On the original letter it states the charge is to sign the car over to my partner if that makes sense?

Thank you

poppasmurf_bewdley

SarahAnne1311 wrote: »

We are awaiting a copy of the agreement which was sent out today. As soon as we get that il put it on here. On the original letter it states the charge is to sign the car over to my partner if that makes sense?

Thank you

If the loan you had was for car HP, then it sounds like it's what used to be called an Option to Purchase Fee. When I first had car HP, this used to be £2.

Whether you have to pay depends on what your original Agreement that you signed said.

pam4malc

Hi Sarah Anne,

I have exactly the same arrangement!
Did you get a final answer from anyone as I would be keen to find out?

I think it is a serious rip off as they have had around 7% interest from us for 3 years when the base rate is 0.5%!

In my book they have had ample money to cover their 'Admin Charge'

Malcolm

opinions4u

pam4malc wrote: »

Hi Sarah Anne,

I have exactly the same arrangement!
Did you get a final answer from anyone as I would be keen to find out?

I think it is a serious rip off as they have had around 7% interest from us for 3 years when the base rate is 0.5%!

In my book they have had ample money to cover their 'Admin Charge'

Malcolm

Even if they had raised the money at base rate (which they didn't) they'd find it a bit difficult to make a profit if 10% of their customers weren't paything them back.

The admin charge is part of the overall cost of borrowing. If it's on the agreement at the start, you have no grounds for complaint when it's levied.