End of agreement finance admin fee!

jadie137

My other half had a letter this morning saying that his last payment for his car finance on the 5/1/15 and its £532.29 he's rang the company why this amount and the lady on the phone said its an admin fee!! How can they justify £500 any ideas how to lower or just handle situation? I don't know many people with a spare £500+ at the beginning of Jan 😩

Dan-Dan

jadie137 wrote: »

My other half had a letter this morning saying that his last payment for his car finance on the 5/1/15 and its £532.29 he's rang the company why this amount and the lady on the phone said its an admin fee!! How can they justify £500 any ideas how to lower or just handle situation? I don't know many people with a spare £500+ at the beginning of Jan 😩

I would suggest your other half spends some time reading over the original agreement that he signed

BeenThroughItAll

jadie137 wrote: »

How can they justify £500 any ideas how to lower or just handle situation?

They can justify it because it's in the terms of the finance agreement he signed. It can be handled by paying up as per the agreement.

Sorry, I know that's not what you want to hear, but that's why you read T&Cs before signing them...

fred246

I thought admin fees had to be justifiable though?

InsideInsurance

fred246 wrote: »

I thought admin fees had to be justifiable though?

Its a grey area

A fee for a service can be pretty much whatever you want under contract law.

A fee for breaching a contract has to be representative of the actual costs involved.

Hence there was a big and long argument over if unauthorised overdrafts were a service or penalty fee.

When you get to financial services there are other considerations like Treating Customer Fairly.

Really the point for arguing it was before signing the contract. As you havent breached the contract it is a service fee and so contract law would mean it can be whatever and so its a case of is there any breach under TCF

forgotmyname

It wont be £500 just admin though. It will be the final payment which maybe more than a months worth and then the admin fees on top.

Same with most contracts. The initial payment maybe higher or as in this case the final payment includes the standard fee + any left overs and extra's.

DaveF327

Like others have said, it's probably something that you agreed you ages ago, even if you didn't quite take it in at the time of signing.

If they don't agree to split the fee over two months (Jan and Feb) then you have until new year to arrange a £500 overdraft to cover it, so you can repay over a longer time if you're really skint.

molerat

I have just looked at a few examples on my local Ford dealer's website.
Cash price £12912
Deposit £1500
Balance payable £11412
Balance payable main £13752.48
Total payable £15252.48
First payment of £430.26 (includes documentation fee)
46 payments of £280.26
Final payment of £430.26 (includes option to purchase fee)
Both fees of £150 each are clearly listed at the outset.

sh0597

It's just so they can make the payments seem lower.