Are my car finance company in the wrong?

Deepriverrock83

I have car finance with Black Horse and have been forced to take a payment holiday, however i received a letter from them saying they moved my direct debit date back (by one day) and are charging me for it. When i contacted them they said it was to cover the interest, but i thought that no additional fees where allowed to be charged for a payment holiday?

I also have a loan with Santander that i did the same with and they stated no fees or interest would be charged, and just today i got an email from my car insurer that mentioned one of the things they offered was a payment holiday that again said no fees or interest (thats one i won’t be taking) so is it a business by business thing thing or are BH in the wrong?

[Deleted User]

Where payments are missed, more interest is incurred which needs to be paid.

That could be via increased payments, extended term or a lump sum.

Deepriverrock83

So why are Santander and my car insurer not charging?

[Deleted User]

You'd need to ask them that. 

Deepriverrock83

Ok fair enough, thanks for the help.

Thrugelmir

If you fail to make contractual payments then a loan will incur additional interest charges. That's a natural consequence. If payment holidays were totally free then everybody would be taking them at every opportunity. At the expense of lenders.