On a DMP that includes First Direct Loan

Coinmachine

Had some good news. I have a loan with First Direct which is in my DMP and they have written to me to state that following a review of loan accounts they have discovered that they didn't inform me of the right to make partial payments at any time during the course of the loan.

As a result they have refunded £685.90, and taken this off the loan balance as this is the interest paid from the date they needed to send statements to me up to the account being passed to HSBC Repayment Services.

Hope others will receive similar letters.

January2015

Coinmachine wrote: »

Had some good news. I have a loan with First Direct which is in my DMP and they have written to me to state that following a review of loan accounts they have discovered that they didn't inform me of the right to make partial payments at any time during the course of the loan.

As a result they have refunded £685.90, and taken this off the loan balance as this is the interest paid from the date they needed to send statements to me up to the account being passed to HSBC Repayment Services.

Hope others will receive similar letters.

Great news - cheers for sharing that information :beer:

sourcrates

Everyone should check this if they have loans, or any "fixed sum credit agreement, especially if your in a DMP.

Section 6 of the Consumer Credit Act 2006 inserts a new section (s77A) whereby a statement must be provided if the agreement is a fixed sum credit agreement under section 77A.

The statement should explain the money borrowed, money paid, interest in all cases and the outstanding amount.

The creditor under a regulated agreement for fixed sum credit must within a period of one year (beginning with the day after the day on which the agreement is made), give the debtor a statement.

After giving that statement, the creditor must give the debtor further statements at intervals of not more than one year.


If the creditor fails to give the debtor an annual statement, then he is not entitled to enforce the agreement during the period of his non-compliance, and the debtor is not liable to pay any interest during this period.

The debtor is also not liable to pay any default sum that would have become payable during the period of non-compliance or that would have become payable after the end of that period in connection with a breach of the agreement occurring during that period.