Maximum interest charged?

Tragicvision

Just a quick one (hopefully) as I can't seem to find the answer elsewhere.

I checked my credit file this morning with Callcredit and suddenly have a default from Lowell for a credit card with the account opened on 22/07/2012 and date of default 29/03/2013.
Now remembering correctly with this one I applied for a credit card and got an advance of £50 (yes £50). I actually never even received the card and that payment I believe went into my normal bank account. Stupidly forgetting about it I never actually received any letters charging me for the figure either or to tell me the debt was sold.
However, the figure from Lowell is £230!
My question is mainly this - what is the maximum interest legally you can be charged for this kind of debt?

sourcrates

Hi,


How can you get a cash advance, but no card ?


There is no "legal maximum" you will of been charged a cash advance fee, then interest, charged at a daily rate, at whatever rate the credit card company advertise, until the debt was sold.


That figure is now what Lowell are pursuing you for.


I would send the "provit" letter, and see how they respond to that :


https://forums.moneysavingexpert.com/discussion/2607247

Tragicvision

Not a cash advance as you would when withdrawing cash from an ATM, rather a direct transfer to my 'normal' account whilst waiting for delivery of the card which would then be reduced from the balance of the credit card.

That letter will be helpful however I've had no physical correspondence as of yet in the entire time - it only shows on my credit file. I might wait a bit as I've only just registered this address and now on the electoral roll.

Just seems odd for £50 taken out 3 years ago.

Thanks for the help

sourcrates

Tragicvision wrote: »

Not a cash advance as you would when withdrawing cash from an ATM, rather a direct transfer to my 'normal' account whilst waiting for delivery of the card which would then be reduced from the balance of the credit card.

That letter will be helpful however I've had no physical correspondence as of yet in the entire time - it only shows on my credit file. I might wait a bit as I've only just registered this address and now on the electoral roll.

Just seems odd for £50 taken out 3 years ago.

Thanks for the help

It will of accrued interest over that time, I`m sure, if they ever do chase it up, you will be able to negotiate a lower settlement.