Swift Advances Excessive charges Reclaim !!

Cvsc

Hi All, Help and advice needed please. Just recieved back my SAR from them, heres a little background info. In April 2005 i took out a Secured loan via Loanmakers with Swift Advances for £11642.25 over 60 Months at a rate of £261.99 per month which totals £15719.40. During the loan term especially in 2008 i fell into arrears and home was repossessed by Swift.According to the info they have sent me as part of the SAR a Redemption quote was given for £11767.81 in Dec 2008 despite making payments of £11838.46 by Dec 2008. In October 2009 following repossession they also received a payment for £16969.10 to cover "arrears" and full payment of the Loan making a grand total of moneys received £28807.56. From the "List of Transactions" recieved from Swift there are lots and lots of charges for "Letters sent" & "Admin Charges" and Arrears charges ranging from £12.00 through to £1104.55 being the most expensive charge. When i took out the loan i don't recollect them informing me of such excessive charges that would be added. How can i question these excessive charges with the hope of getting some if not all repaid back to me as it seems to me they have made a killing out of my unfortunate circumstance.Is there a template letter that i could send to them to question these charges? Thanks in advance.

dunstonh

When i took out the loan i don't recollect them informing me of such excessive charges that would be added.

You wouldnt expect it either. Going through the default charges is not required.

How can i question these excessive charges with the hope of getting some if not all repaid back to me as it seems to me they have made a killing out of my unfortunate circumstance.

There has been very limited success on reclaiming these charges. The FSA did warn some lenders but found most were ok. Basically, they are allowed to charge but they have to state what the charge is for. If they dont do what they are charging for then you should receive a refund on that charge. i.e. if they charge for you seeing a debt counsellor for example and you didnt see one then you can reclaim that bit.

Is there a template letter that i could send to them to question these charges?

No. Just write a simple and short letter giving your reasons. Don't go down the unfair or excessive route as that will be destined for failure. Also, don't expect to win. Statistically, you see very few successes. So, don't bank on the refund coming. If you get something back then well done but dont spend in advance on the expectation of winning your complaint.

Cvsc

In the process of collaborating my letter to Swift Advances regarding there excessive charges on my old account but if i cant used words like " Unfair" or "excessive" then how would any of you propose i word it? Thanks.

dunstonh

Cvsc wrote: »

In the process of collaborating my letter to Swift Advances regarding there excessive charges on my old account but if i cant used words like " Unfair" or "excessive" then how would any of you propose i word it? Thanks.

What you dont want to risk is the complaint being viewed as an "unfair" charge complaint. These will usually lose or not even be looked at. Since the banks won the bank charge court case, the "unfair" or "excessive" charge complaints have mostly fallen at the first hurdle.

These charges are published. The FSA found no problem with the levels. However, it did find some lenders making the charges but not actually doing what the charge said it was for. So, if you havent been getting what you are paying for then that is what your complaint is about. If it is just a vent about how high the charges are then expect to fail in that complaint.

Cvsc

Thanks for that Dunstonh, My main problem with Swift is the shear amount they claimed following the sale of the property (£16,969.10) This is in year 4 (7 months left to pay) of a 5 year loan.This appears to be mainly charges relating to letters sent out plus interest charges on the letter charges and other charges plus interest and the more trouble i found myself in the more letters they bombarded me with vastly increasing the charges plus interest owed to them. I have seen in many other forums the amount of people that have had loans with Swift and are near the end of the term and request a Redemption quote and are amazed by how much they still owe on account.Hence why i wish to question there charges and how they can possibly justify them when they end up with not only the agreed amount repaid to them plus the same amount again in charges.Thanks again.

dunstonh

What you could do is complain that you feel they overcharged. This will require them to look at the levels and do an audit on the charges to make sure you were charged correctly and within their published terms.

Cvsc

Great dunstonh,I'll run with that and keep you posted.Thks again.

Cvsc

dunstonh wrote: »

What you could do is complain that you feel they overcharged. This will require them to look at the levels and do an audit on the charges to make sure you were charged correctly and within their published terms.

Just a quick update regarding my Unfair charges case against Swift Advances.
Emailed complaints dept 8th June detailing how i believe the £13000 of charges added to my account seem unfair and wish for them to investigate them further.
Received letter back dated 11th June following there "Full Investigation" into my complaint.Letter goes on to outline key points of the credit agreement and details of there investigation.basically telling me that they need paying for the work they do and believe £13000 of charges plus interest over the term of a 5 year loan is according to there Tariff Charges acceptable.However they then go on to mention that they are willing to make me an offer of £230 in respect of fees and charges plus interest as a gesture of goodwill and is deemed fair and reasonable to refund certain historical fees which were applied to the account.
Needless to say email sent off today deatiling my unwillingness to accept there offer and proceed to detail my position and disagreement with them and ask them to reconsider there position within this matter
Awaiting there response.
Thoughts Please!!!

Cvsc

Any thoughts???

Cvsc

Update!!
Response received today which basically says they are sticking by what they said in there previous response and if I'm not happy then feel free to go to FOS..........So off to FOS we go.

Cvsc

Makes for good reading !!!!!!
http://www.oft.gov.uk/news-and-updates/press/2011/73-11
http://www.oft.gov.uk/shared_oft/press_release_attachments/swift-advances.pdf
http://www.fsa.gov.uk/library/communication/pr/2011/079.shtml