1st Late Payment Fee

nomastersorkings

Hi. This is a small issue but a frustrating one - hoping somebody can help.

We changed our bank account details via letter (not recorded) to various companies on 12th May. All changed except one. Today we have been charged a £30 late payment fee as they claim they never received the letter.

The letter states this is as per our signed 'terms and conditions'. We have never had a copy of this and so one has been sent through. All the terms and conditions say is "If you miss a payment you will incur extra charges. Your credit record may be affected and you may find it harder to borrow again from the bank or other lender. The bank may also take legal action against you."

It doesn't say how much any penalties will be e.t.c. There is nothing we can do to prove we sent the letter as we didn't send it recorded ... but what is to stop the creditors charging £1000 default fee as there is no amount given? Our home insurance payment is only £20 ppm so the charge is at 150% ..

Also, as we have never received a signed copy of the agreement until now, is the onus on the company to prove one was sent in the first instance (via recorded delivery)?

Thanks for any advice! Might be clutching at straws here.

Fosterdog

Have you actually read you insurance policy? Every policy I have ever had for insurance has this written in with the actual policy documents so no need for extra T&Cs.

£30 is a reasonable amount and many would charge a lot more, you say you sent the letter but you have no way of knowing if they actually received it, post goes missing all the time. It would have been easier to just phone them with the new details or at least ask them how you are supposed to give them your new details.

Le_Kirk

Just ask them for a copy of the "signed Terms & Conditions"


I guess you will still have to pay anyway.

nomastersorkings

Hi. Thanks for the reply. Yes I have been through the policy with a fine tooth comb (sad I know) but I too was surprised not to see fees detailed (they are in car insurance and bank accounts e.t.c.)

£30 may be reasonable and yes we probably should have just called - it was just easier at the time to send a bulk letter.

I'm still struggling with the amount though. If it isn't explained anywhere - what is the statutory guidance? Can they charge £300 just because I signed an agreement 'acknowledging there would be charges ...'? i.e. What is fair and reasonable and how is this judged? Surely it's easier for companies to tell their customers precisely what the penalty will be?

nomastersorkings

I did ask for a copy: that's all it said - 'if you miss a payment you will incur charges ....'

wealdroam

nomastersorkings wrote: »

I'm still struggling with the amount though. If it isn't explained anywhere - what is the statutory guidance? Can they charge £300 just because I signed an agreement 'acknowledging there would be charges ...'? i.e. What is fair and reasonable and how is this judged? Surely it's easier for companies to tell their customers precisely what the penalty will be?

Remember excessive bank charges of a few years ago?
I think the courts decided that £30 was probably a reasonable charge in cases of late payment.

Why do you think it should cost less to handle a £20 missed payment than (say) a £100 missed payment?

Who are your insurers?

unholyangel

You could always complain to the financial ombudsman also.

As above, insurance policies will usually include all terms and conditions, but if they really didn't.....well you cannot be bound to hidden terms (terms you had no opportunity to become acquainted with before being bound by the contract).

nomastersorkings

Hi.

To be honest I didn't see it as an admin fee as the agent said it was an auto-generated letter ... I believed it was a penalty (this is the point though - I don't know what to guess / believe as nothing is stated).

The insurers are Ageas and the finance company is Close Premium Finance

Le_Kirk

nomastersorkings wrote: »

I did ask for a copy: that's all it said - 'if you miss a payment you will incur charges ....'

But had you signed it?

nomastersorkings

Yes we definitely signed it - certainly not disputing that. As I say, it's like open season though ... they could have charged £1 or £1000 for all I can see in the terms and conditions

wealdroam

nomastersorkings wrote: »

The insurers are Ageas and the finance company is Close Premium Finance

So who is charging this £30?
Ageas or Close?

Who did you send the missing letter to? Ageas or Close?