Credit facility fee? Is this right

numpty2009

I have just purchased a new car using finance through a large dealer.When negotiating the deal with the dealer he only spoke to me about regular monthly payments and the end balloon figure. On the day I collected the car I was given the paperwork to sign and discovered that there was a £100 credit facility fee applied by Barclays on teh first payment. At the time I complained to the dealer that I wasn't aware of this fee however, he explained that it was applied by Barclays and couldnt be removed. He did say he would speak to them about it and the sales rep but couldn't be moved on it. Obv I was there to pick up the new car so couldn't really walk away at that point.

I have now received my finance letter from Barclays who stated teh normal monthly price without the credit fee- even though it says clearly that it includes the credit fee. When I rang Barclays to change the monthly payment date I was then told that the letter was wrong and I had to pay the fee on top of the first payment. Im obv not happy about this and wondered if I had a cause for complaint with Barclays or to push it further with the salesman.

Can anyone give me some light on if you think there is a cause for complaint or that this is normal practice?

meer53

I think it's normal practice. There's usually some sort of fee applied with the first payment.

Peelerfart

Agree with meer I think it is normal practice too.

For what it's worth I think it's sneaky and is a method of extracting a little bit more cash,but that's just my opinion and counts for zero.

poppasmurf_bewdley

So now they put a fee on at the start of the loan agreement, and another at the end of the agreement? It's just a way of extracting extra cash from customers without increasing the APR in their advertising.

It should really be included in the payments and shown in the APR. otherwise it is underhand (in my opinion).

chanz4

Its to cover the account setup, registration costs with hpi register, this is the same for the final payments

numpty2009

Thanks for the replies. I had a feeling it was a Normal but sneaky practice. I'm a little miffed about this and the fees and am have now just found the m and s car buying plan. I'm still in the cooling off period so may now cancel the barclays loan and go with them.
It's over 2000 less over e same period in interest and fees etc

opinions4u

poppasmurf_bewdley wrote: »

So now they put a fee on at the start of the loan agreement, and another at the end of the agreement? It's just a way of extracting extra cash from customers without increasing the APR in their advertising.

It should really be included in the payments and shown in the APR. otherwise it is underhand (in my opinion).

The fee has to be reflected in the APR quoted.

poppasmurf_bewdley

opinions4u wrote: »

The fee has to be reflected in the APR quoted.

I stand corrected. Thanks.