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Car finance fees
Hello. I've spent the past 50 mins searching the board and couldn't find an answer to a query I have regarding 2 fees on a car finance HP agreement I have, so I wonder if someone more enlightened about these things than I could help me.
I'm coming to the end of a 30 month HP agreement with Ford Credit from a main dealer.
The first was a fee of £105 added to the first installment, and this was called the "Finance Facility Fee". This is explained on the documentation as follows:
"The finance facility fee covers the costs of setting up your finance agreement. This includes the cost of the Credit Reference Bureau we use as part of the loan approval, as well as the general administration costs of initiating a loan. The fee also covers the costs associated with the normal running of your account once it has been set up. The fee is non-refundable"
The second is a fee of £75 due to be added to the last installment next month, and this is called the "Purchase Fee". This is explained as follows:
"The option to Purchase Fee is charged as a nominal sum at the end of the hire agreement to transfer title from Ford Credit to you or the registered keeper of the vehicle. This also helps to cover Ford Credit's costs of ownership transfer and account closure".
In light of the OFT's announcement and the success of all these unfair bank charges issues, it got me thinking.
Do you think I'd be justified in challenging these 2 fee's? And if so, on what grounds? Unfair terms? They just seem unreasonably high for what they purport to be.
Thanks in advance for your thoughts.
I'm coming to the end of a 30 month HP agreement with Ford Credit from a main dealer.
The first was a fee of £105 added to the first installment, and this was called the "Finance Facility Fee". This is explained on the documentation as follows:
"The finance facility fee covers the costs of setting up your finance agreement. This includes the cost of the Credit Reference Bureau we use as part of the loan approval, as well as the general administration costs of initiating a loan. The fee also covers the costs associated with the normal running of your account once it has been set up. The fee is non-refundable"
The second is a fee of £75 due to be added to the last installment next month, and this is called the "Purchase Fee". This is explained as follows:
"The option to Purchase Fee is charged as a nominal sum at the end of the hire agreement to transfer title from Ford Credit to you or the registered keeper of the vehicle. This also helps to cover Ford Credit's costs of ownership transfer and account closure".
In light of the OFT's announcement and the success of all these unfair bank charges issues, it got me thinking.
Do you think I'd be justified in challenging these 2 fee's? And if so, on what grounds? Unfair terms? They just seem unreasonably high for what they purport to be.
Thanks in advance for your thoughts.
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Comments
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Just been looking here http://www.consumerdirect.gov.uk/before_you_buy/think_of/unfair-contracts
and found this statement:
Terms in consumer contracts that set the price or define the product or service being supplied are 'core terms' of the contract and are exempt from the test of fairness as long as they meet the plain language requirement.
Has this answered my question for me? Should I just accept these fee's quietly and learn from this experience?0 -
They were advised when you took out the loan and in the key facts document. They are not unfair penalty charges, but the cost for a service that is predefined.
If you don't want to pay them, then use a bank loan instead of a car dealer loan...
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This fact alone does not mean that they can automatically be classed as fair thoughnomoneytoday wrote: »They were advised when you took out the loan and in the key facts document. ...
And which part of my original question does this statement attempt to answer?nomoneytoday wrote: »If you don't want to pay them, then use a bank loan instead of a car dealer loan
Thanks for your input :rolleyes:0
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