Creation Finance - Beware!

Amanda65

Morning all

I have a store card for MK One (which I pay off every month but periodically get offers / vouchers etc. so is worth keeping). The card is administered by Creation Finance and today I have received a letter from them, at the bottom of which is a cheque, made out to me, for £700.00.

On reading the small print it would appear that this is a cash advance on my card as they have increased my credit limit. Carrying on down the blurb, not only is there a 2% cash advance fee but the effective interest rate for this 'advance' is 30.9% pa!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I think that this is a very sneaky way of lending money and someone not properly reading the letter could think that this was some sort of payment to them. Surely this must be against financial rules and regulations and if it isn't it should be.

dangeroussports

I dont know. Have you checked up?

Butlers1982

But you would have to cash the cheque wouldnt you? I get blank cheques from my Credit Card company every month. I dont use them because i know is money from my credit limit and that the APR on cash advances are massive. They arent doing anything wrong, they are just being clever. But then again if people really think that getting a cheque of someone is free then im sorry ive no remorse if they think they have been duped.

dawnmc_2

Hi

Just reading these posts on Creation Finance. I took out Car Finance about 2 years ago with a finance company - i foret the name now - and after about 12 months off having the finance it then got took over by Creation Finance Ltd. This meant nothing to me to be honest as nothing my end changed. My payments were stil the same etc.

Now last month the first payment EVER got returned from Consumer Finance by my bank. I rcvd a letter of default from Consumer Finance telling me this had happened and that if i didnt make payment immdiatley then firther action would be taken. Before i een had chance to ring them up to sort out i then received a letter from a debt collecting company - Red Castle - telling me to pay up the full amount immediatley.

I find it very unfair that after 3 years and one missed payment Consumer Finance dont give me the chance to contact them they just refer me to a debt collection agency - Can they do this after one reminder letter and can they serve a default on me straight away???

Not very happy!

maninthestreet

Why was the payment returned?

Mongy-chops

Hey Dawnmc, the name of the company used to be Open and Direct, they weren't bought over they just changed their name to fit in with their sister company as there is Creation Consumer Finance and Creation Financial Services, the latter deals with store cards, the first doesn't yet.
Now with regards to your direct debit fault there would usually be 4 letters sent out before a debt collection agency is contacted. Did you change address or anything unusual?

hollydays

What length of time before you receiving the first letter and the debt collector sending the letter?

bigdaveh

:mad: my wife took out payment protection when buying a car from open & direct which has now been taken over by creation finance she traded the car in 2 years ago payed the protection plan up to date then closed it now almost 2 years later creation have sent her letters & phone calls saying that she still owes them £411 they are threatening her with repossessing the car that i want to see as she dosent have it anymore they dont believe her when she tells them she dosent have it now my wife is 7 months pregnant & this is stressing her out how can we get it through thier thick skulls she owes them nothing anymore

dangeroussports

show them how you paid it off.
bank statements (ask the bank to reproduce it, even from years ago)
credit card statements - ditto -


did u get a letter of completion, is it now in the bin?

chuckley

WOW i dint know this happened. i have GE store cards and never receive anything but my statements with offers in...

wow thanks for the heads up!!!!

Yorkshirelady

I have recently received a demand for a store card from Mackenzie Hall Ltd. I have never had a store card in my life and when I called the number on the letter they stated all they could tell me was that it was a store card demand from Creation Finance for £118.96 and that I must prove it is not my debt... I am trying to get this resolved, any help?