Loan Charges for Late Payments

Mandy2801

Has anyome been charged for late monthly loan re-payments? I just found out that I have and it totals c.£500. Does anyone know if these charges come under the same legalities as Bank charges. I would like t re-claim these charges - has anyone else tried this?

System

how on earth have you not seen these charges ? i guess it depends on the amount per charge ,over what time period are we talking and what amounts?

Mandy2801

Of course I've seen the charges but you missed the point of my question, I want to know if they're potentially illegal, just like bank charges!!!!!!!!!!

dannynixon

Talking from a common sense point of view, no I do not think they are legal. I think they will have been set out clearly in the terms of the loan.

This is my viewpoint but someone may have an actual "answer" instead of me

blue_haddock

So someone is gracious enough to give you a loan, you repeatedly pay them back late and then moan when they charge you for the privelege?

Hmmm let me think.....

standupguy

There is a good chance that the amounts may be considered unfair.

Ask your lender for a full statement of your account including a breakdown of all charges.

Mandy2801

blue_haddock wrote: »

So someone is gracious enough to give you a loan, you repeatedly pay them back late and then moan when they charge you for the privelege?

Hmmm let me think.....

Well, let me say to Blue_Haddock I did not repeatedly (on purose) pay them late. I, like a lot of other people have fallen victim of trying to make my money go further after getting divorced - and paid my loan when I was paid despite negotiating with the loan company.(yet they still charged me). Please don't answer my thread if you are going to be judgemental to my situation which you know nothing about!!!!! Thank you to others who have not been judgemental. And can I ask then have you also judged people who have been overcharged by their banks for going over their overdraft limit??? I thought this forum was to ask others for advice and help. Hmmm now let ME think.... looks like you don't think so!!!!!!!!!!

dannynixon

blue_haddock wrote: »

So someone is gracious enough to give you a loan, you repeatedly pay them back late and then moan when they charge you for the privelege?

Hmmm let me think.....

Maybe a little sarcastic but I do not think that he is too far off the bat. If you want my advice, I think you should really try and focus on paying your loan ontime from now on. If you are struggling to pay the loan, why not write and asked for a reduced payment for a short while till you sort yourself out?

I think the terms will have been there from the off for you to see and they are simply following the terms of the agreement

blue_haddock

In answer to your question Mandy yes i am cheesed off that people like myself who lived within our means (ie not going over our overdraft limit) are now seeing people claim huge amounts back from the banks.

When i opened my account i agreed to the t&c's and stayed within them. I knew the penalties for exceeding my limit so stayed within it even if it meant doing without.

standupguy

I have to say I agree with Mandy and perhaps it would be better not to comment at all if you are going to be judgemental without knowing her full circumstances.

The point here is are these charges unfair?

If a bank charges £25 for a phone call then the charges are excessive and unfair and not commensurate with the costs involved to the bank and anyone that has had to pay excessive charges should have the opportunity to challenge these.

Had the banks treated customers fairly in the first place and had reasonable penalty amounts then they would not be getting the number of claims now.

Yes, it is right that some form of penalty applies if a customer does not pay on time but it is the amount of the penalty that is in question not the principle.

My concern is that Judgemental comments such as these will put people off joining in threads or posting their own questions?

dragonfly1977

Well said, standupguy! It's is very off putting when people make judgemental comments. I am new to this site and have been very hesitant to post questions in fear that someone will judge me for my financial situation and if it wasn't for people like you i probably wouldn't bother, but the advice i have received just by reading other peoples posts is invaluable, so thank you.

blue_haddock, unless you have actually been in that financial position it is really unfair to judge others, do you think we enjoy struggling financially on a daily basis? Sometimes things happen that are beyond our control and it is often the fees that the bank charged in the first place that get people into even more financial difficulty, just because they may have gone over their limit by pennies.

My bank used to charge £8 per day for being overdrawn ... now it's £25 per day! Do you think that is a fair amount??