Loan Charges

Cloughpotter

Just looking for a bit of advice. I missed 2 payments on a loan but they want to charge me £25 for every letter they've sent me. I've now paid the 2 missing payments, but don't think the charges are fair, can I challenge them?

Gaz83

It will say in your loan paperwork what charges are set out for missed payments, including sending a letter. So you'll have agreed to it when taking your loan out.

You could always write to them and ask them to refund you as a gesture of goodwill. Nothing ventured, nothing gained.

They'd be within their rights to say no, but they might say yes. No harm in asking.

somethingcorporate

I agree with the above, nothing to hurt from asking but don't hold your breath.

£25 for a company to send out a letter isn't probably 100 miles away from what it did cost them so if it is a genuine pre-estimate of loss then seems reasonable.

Apples2

You can't just repay the amount you missed and expect to be back on track.
you would have to make larger payments to cover the extra interest applied to your balance

Herzlos

What do you find unfair about the charges?

Cloughpotter

Herzlos wrote: »

What do you find unfair about the charges?

it may be just me being naïve (don't shoot me down) but £25 for sending a letter! I would say may £10 at absolute maximum

Cloughpotter

Gaz83 wrote: »

It will say in your loan paperwork what charges are set out for missed payments, including sending a letter. So you'll have agreed to it when taking your loan out.

You could always write to them and ask them to refund you as a gesture of goodwill. Nothing ventured, nothing gained.

They'd be within their rights to say no, but they might say yes. No harm in asking.

Thanks, appreciate your response. I have dug out my original paperwork and it say only £15 but they have subsequently changed their charges, I suppose it's within their right to do so. anyway I have asked them if they can reduce or waive, just waiting their response.