Car finance letter administration fees

Nekoda

Hi all, I currently have a car out on finance, I was late with this month's payment, but paid in full just before it was a month late. All up date again, great. Today I received a statement from the finance company in the post saying I owe £200 odd in admin letter fees at a whopping £15 a letter (and some late payment charges which I agree with)

Some of these letters I have received (never seen anywhere on them stating they charge £15 to send me one though) but alot of them I have never received.

My question is how can they justify £15 for sending a letter about a missed payment? I enquired to see a breakdown of the £15 cost and was told I can't see that. Obviously I'm not paying the administration fees unless I can see exactly how they break them down to charge that much a letter. Is there anything I can do about these?

Thanks.

Ectophile

What does it say in the T&Cs for the finance policy. If it's listed there, then they won't bother justifying, but will say that you agreed to it when you took out the finance.

motorguy

Nekoda wrote: »

Obviously I'm not paying the administration fees unless I can see exactly how they break them down to charge that much a letter. Is there anything I can do about these?

Thanks.

As has been said, they will have clear terms and conditions that will state the cost of a letter.

The way to not have to pay them is to not incur them.

FWIW because you've breached their terms with late payments you'll have lost your right to VT the car - its something to bear in mind.

Also, you've probably wrecked your credit rating with regards to getting another car on finance.

boliston

vt is a statutory right that cannot be lost by breaking a contractual term as statute always trumps contract

Ectophile

motorguy wrote: »

As has been said, they will have clear terms and conditions that will state the cost of a letter.

The way to not have to pay them is to not incur them.

FWIW because you've breached their terms with late payments you'll have lost your right to VT the car - its something to bear in mind.

Are you sure about that? My understanding is that you can still VT providing you make up any outstanding payments.

Also, you've probably wrecked your credit rating with regards to getting another car on finance.

I think "wrecked" for being less than a month late on one payment is exaggerating things a bit. More like dented.

motorguy

boliston wrote: »

vt is a statutory right that cannot be lost by breaking a contractual term as statute always trumps contract

Contract may already be broken by the missed payments

https://forums.moneysavingexpert.com/discussion/5721987/voluntary-termination-of-car-finance

https://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/

Which may make it a Voluntary Surrender, not a VT

https://www.experian.com/blogs/ask-experian/the-impact-of-a-voluntary-vehicle-surrender/

motorguy

Ectophile wrote: »

I think "wrecked" for being less than a month late on one payment is exaggerating things a bit. More like dented.

"and some late payment charges"

I think we're talking about multiple late payments....

motorguy

I could be wrong RE: the losing the right to VT, just flagging its something to bear in mind.

molerat

The right to VT will only be lost if the agreement is put into default.

Nekoda

Thanks all for the information, suppose I best pay the admin fees, just felt like they are taking the !!!! a bit with the amount the y charge for sending a letter!

Just to clear up, I have only been late once "charges" applied to the amount they charged me in interest for being late with the payment.

Thanks again all!

Le_Kirk

You could try a Subject Access Request (SAR) it's free now and ask them to disclose every bit of information they hold about you, including letters sent, when they were sent and what they were about. Not sure if this is exactly why SAR was designed but you are a subject and they hold data about you.