Car finance administration fee.

k3lvc

Edwood_Woodwood wrote: »

No, I am saying exactly what I stated.

The subject is about an admin charge.

How you can then confuse this with "everything charged to you" is quite bizarre.

The source is the law. The law of contract.

It is a well known concept, obviously lost on you however, that one is able to raise a dispute and to expect an explanation.

The OP has purchased car finance, a credit agreement regulated by the Consumer Credit Act.

Within that contract is an admin charge of £199 and, seemingly, another of £149.

The OP is fully entitled to ask the creditor to explain how these sums were arrived at.

I'm unsure as to why you find this to be astonishing.

Ever heard of the mortgage exit fees scandal?

Where lenders would charge something like £300 for this administration role yet the true cost would probably have been about £30.

Late credit card fees?

Did it really cost the lender £35 to administer a late payment?

No, which is why most now charge about £12.

Simply, if the admin fees charged to the OP cannot be shown as a true cost of the admin then he has a case.

A case for what ?? Reneging on an agreement made/signed already because it wasn't read/understood ?

Edwood_Woodwood

k3lvc wrote: »

A case for what ?? Reneging on an agreement made/signed already because it wasn't read/understood ?

A potential claim for an unfair term or a misrepresentation.

If an admin fee has been calculated at £199 & another at £149 by the lender then they can easily justify this cost as they are charging it.

Upon signing a contract a customer is being told that is what it costs.

However, if they are not able to quantify this cost then there is a dispute.

As I said, if one signs a mortgage contract and an admin mortgage exit fee is charged at £300 but this is in no way the true cost then it will be refunded.

I run my own business and it costs me £10 in admin to compile and send a letter of late payment to a customer.

I cannot demand £150 for doing that as it isn't the true cost, regardless if I have stated it in a contract and they have agreed to it.

It can still be challenged at court and I would somehow have to prove that it did cost me £150.

There is absolutely nothing stopping the OP to ask the lender to justify these admin fees.

If they can justify, then fine, if they cannot, then he has a potential claim.