Help with Credit Agreement

brinksy

Hi

I'm after some advice regarding a finance agreement that i am trying to settle and pay off and i'm being faced with whopping interest charges.

We bought a sofa last august 2006 from Land of Leather, the promotion was 12mths interest free and then 3 yrs @ 30% apr, wasnt really an issue, we were paying the whole thing off after 12mths. we declined the payment protection. we signed the agreement with open & direct retails services. total to be paid was £2047.00

12mths later..

I received a call a few weeks back from a company called "creation finance ltd" asking me to confirm some security questions, as i'd never heard of this company i refused to give them any details, and ended the call.

I knew that it was coming up to the 12mths so started to hunt for the paperwork which i found last night. On the cover letter, it mentions a special offer date of 29/08/07 and that no further reminder of the special offer date will be sent. it gave options on how to pay and also online. i tried to access this last night to pay the balance and got sent to a website creation finance and no way to pay online.

I called them first thing this morning for a settlement figure, and the figure they gave me was a whopping £3550.11 which is £1532.11 more than the initial amount. when i asked for a breakdown, i was told that they had applied a whole years interest of £874.01 and also payment protection of £658.10 which we had declined.

When we initially signed up for this, there was no mention to having penalties to pay if we defaulted on this special offer date, we werent even aware that it was imperative that it be paid by this date to avoid further charges.

i really need some help on where I stand.

also, the sofa wasnt actually delivered until some weeks later.

any help would be greatly received.

[EMAIL="abuse@moneysavingexpert.com?subject=Reporting post http://forums.moneysavingexpert.com/showpost.html?p=6304253"][/EMAIL]

liz105

BUMPITY BUMP BUMP, CAN WE HAVE SOME MORE VIEWS ON THIS PLEASE??

can the CAB help? This is totally out of order for them to do this, I assume you have complained directly to them and made a lot of noise about this? I mean if the payment protection isnt bad enough, doesnt this mean all 12 month interest free deals are b*ll-whatsit????

I'd request a copy of the credit agreement from them, bet you anything they cant provide it!

tealady

Try ringing Consumer Direct (or if in Birmingham) Trading Standards.

Debt_Free_Chick

brinksy wrote: »

We bought a sofa last august 2006 from Land of Leather, the promotion was 12mths interest free and then 3 yrs @ 30% apr, wasnt really an issue, we were paying the whole thing off after 12mths. we declined the payment protection. we signed the agreement with open & direct retails services. total to be paid was £2047.00 On the cover letter, it mentions a special offer date of 29/08/07 and that no further reminder of the special offer date will be sent. it gave options on how to pay and also online. i tried to access this last night to pay the balance and got sent to a website creation finance and no way to pay online.

So did you pay £2047 by 29/08/2007?

I called them first thing this morning for a settlement figure, and the figure they gave me was a whopping £3550.11 which is £1532.11 more than the initial amount. when i asked for a breakdown, i was told that they had applied a whole years interest of £874.01 and also payment protection of £658.10 which we had declined.

When we initially signed up for this, there was no mention to having penalties to pay if we defaulted on this special offer date, we werent even aware that it was imperative that it be paid by this date to avoid further charges.

It sounds as though you didn't pay off the £2047 within 12 months. If so, then they've not added any penalties - they've added the interest which is stated in the original agreement :eek:

The PPI you should be able to get them to reverse this out as you did not sign up to it.

Then grovel and see what they will do about the interest added although, to be honest, they are simply applying the T&Cs as you didn't pay off the finance within 12 months :eek:

brinksy

liz105 thank you for bumping up the thread,

they have added the whole years interest for the "interest free period" because it wasnt paid on time of £870 something. also they have added on the payment protection for the time after the interest free period, which wasnt really pointed out to us, so this figure was £580 something and then they have added on interest of £600 something to that.

i havent complained as such yet, i was so gobsmacked that i was stuck for words, and i would like more advice so i can argue back with some knowledge.

Something from memory is sticking in my mind that this kind of credit agreement cannot be upheld saying that no further correspondence will be sent to remind us, plus the fact they have changed their trading name from who we originally signed up to.

I have the credit agreement now, i found it. it is very misleading!

i havent yet spoken to the CAB, i was under the impression that you needed to actually visit them now, which is pretty difficult to do when you are at work and run a family!

i mean should i pay what i was going to pay orginally and then argue about the interest etc after? i really dont want the interest to escalate. I cant see anywhere about a redemption penalty, only the additional charges of the 1st years interest, and this payment protection for the remainding 3yrs + interest.

fay66

Hi , they were taken over last year land of leather finance, I know that, I paid half of mine and have to pay the rest plus insurance, which i took out
and protection cover, I need to ring them to see what i owe them , they have been taking £83.54 a month

brinksy

They have taken my first direct debit payment too, but if you are planning to pay off the rest then you should check that agreement, it sucks!!!

fay66 wrote: »

Hi , they were taken over last year land of leather finance, I know that, I paid half of mine and have to pay the rest plus insurance, which i took out
and protection cover, I need to ring them to see what i owe them , they have been taking £83.54 a month

Mongy-chops

To see if you can get the PPI removed write in to

Creation Consumer Finance
Compliance Department
6th Floor Royston House
34 Upper Queen Street
Belfast
BT1 6FD

Explain the situation, if they can't remove the PPI they will most likely refund you what they have taken.

juniors1

hi can you provide me with a phone number for this creation finance in belfast as i cant find one anywhere on my agreement