Interest charges on defaulted account.

outofmoney

Can anyone help me with a query.
Hubby owes several companies and with alot of pushing from me has managed to get all but one to agree to reduced payments. The only one we have trouble with is Sainsbury Credit Card.

He phoned them nearly a year ago to explain the situation, and from then on sent reduced payments. As this was not the minimum they kept adding interest at a high rate plus fees for not making the proper payment.

He phoned again about 4 months later to find out if they could freeze the fees and they said not until the account had defaulted, which would be 6 months from the first non payment. We thought this would would be soon but they then said as he had been making some payment, although reduced it would not default.

So he has now not made payment for 6 months and finally they (Well, the debt collection company) have got in touch with the usual letters of threatening court action etc. We plan to offer what he was paying before but annoyingly the amount he now owes is three times the original amount a year ago due to all the added interest and fees.

So we want to know if they can legally add these when he asked them to sort it nearly a year ago or must it go through the 6 months of non payment first and accrue the huge fees?

CLAPTON

fees can be reclaimed in the usual way, although legitimate interest can't be.

thumshie

Look at the reclaim your bank charges section. Theres alot of info/letters/helpful people that will guide you to reclaiming the 'fees' back..