Anglian Windows Gold Account (Hitachi Personal Finance)

ajg1967

We have recently had windows and doors installed by Anglian. We managed to get them to beat the price of local companies but they would only give us this price if we used their gold account (loan arranged through Hitachi personal finance)
The salesman told us we could pay off 70% of the loan immediately and then pay the monthly payments until we received our first annual statement at which point we could settle the loan completely. He said the finance company gave Anglian a payment for bringing people to them and Anglian passed this saving on to the customer. If we paid off the loan before the year was up Hitachi Finance would take the payment back from Anglian and Anglian would then come to us and ask for more money.
I have read all the small print on the finance agreement and the paperwork from Anglian and there is nothing to say I cannot pay off the loan in full. On the Hitachi finance web sit I can even get a settlement payment figure. Does anyone know if Anglian would be in a position to demand extra money from me if I settle the loan in full before the year is up? Has anyone settled a Gold Account before the year was up and if so, what happened? Did Anglian try and chase you for more money?

FireWyrm

From the Anglian website :

We would point out that, as with most methods of funding, there will be an early settlement charge if you settle the account in full. This will be no more than two months interest on the outstanding balance. You should always contact your lender directly to obtain your settlement figure first. The choice is always yours to settle at any time - you retain the freedom of choice.

As with most loans, they can only charge a maximum of 2 months interest as a settlement fee. I suggest that if you go down this route, you pay all but £10 one month and then the remainder the next month. This means you can only be charged 2 months interest on £10, not two months interest on the entire balance.

As with all loans and contracts though, it is best to go straight to the lender with these questions and get a written response, or at least have the response recorded so you can deal with it later if there are issues.

Source : http://www.anglianhome.co.uk/company-information/legal/finance/

Phil_Linder

This sounds like part of Anglians contract with Hitachi. They get a commision for bringing them finance. But if the loan was paid off under 12 months they would not be eligible for the commision as Hitachi would not make enough from the Loan agreement.
As Anglian have passed the commission back to you, they are now saying they would need more money from you if you do not have the loan for over 12 months.

Thats a guess but it sounds like that is what they have done.

FireWyrm

Phil_Linder wrote: »

This sounds like part of Anglians contract with Hitachi. They get a commision for bringing them finance. But if the loan was paid off under 12 months they would not be eligible for the commision as Hitachi would not make enough from the Loan agreement.
As Anglian have passed the commission back to you, they are now saying they would need more money from you if you do not have the loan for over 12 months.

Thats a guess but it sounds like that is what they have done.

the Op's contract is with Anglian, not Hitachi. What third party arrangement Anglian and Hitachi have is none of their concern and according to the website, there is no penalty for early settlement beyond the mandated 2 months interest. Read the small print carefully, but if they do try to back charge you for this 'commission' you politely tell them to bog off and report them to the ombudsman.