Littlewoods Finance- Default, Refinance and now Interest Bearing Account?!?

[KittyClaws858]

Hi everyone, pretty new to this place so here goes....

Over the last year or so i had an account with Littlewoods.com . I was meeting all my payments fine until a couple of months ago they suddenly took a hefty jump from around £30 a month to £95. I phoned to ask why this was and apparently it was the result of some purchases i had made and this would continue until Oct when they said it would go back to £30 odd per month. I told them I could no way afford this as I am on benefits but they just said oh well tough really pay up.

Eventually I had a woman on the phone who wanted the money and when i said i couldnt give her it she said i should refinance the account. I asked her what this was and she said basically (if i remember correct) that it was the transferring of the amount (for a fee of £85 added ontop of the outstanding amount) which left my Littlewoods.com account cleared and able to get credit on it. Also, im sure she said it would be better for my credit rating because it was 'debt cleared' or something.... Anyway, the amount is for £500 odds by now after they have added the fee and she said i would pay it back over a year (kept trying to get me over 3) at a lower monthly payment.

They sent me out the forms which i signed and sent back. they have confirmed reciept of this CCA as of 18th Sept. The letter says that I have transferred to an 'Interest Bearing Account'?!? . Also, when i chck my littlewoods statement online it says i have to pay £250 by 10 Oct :O eh wait a minute????

I have read the small print and have immediately, as of tonight, emailed the, to say I am cancelling this CCA for this 'credit bearing account'. If i had come across this site earlier i would have known better than to refinance anyway and taken other steps. now they have this new CCA!!!! when they probably didnt have the original one.

i have my orginal customer copy and i see they have stung me with another CAA. Im raging. they are stinging me for £40 a month. i was under a lot of pressure when i signed this. the 2nd of Sept so i cant even claim within 14 days. im STUFFED basically.

[KittyClaws858]

Also, i was told that there would be no early settlement fee but from this agreement i have signed there appears to indeed be a resettlement fee.

!)amount of credit- £443.79
2) duration 52 weeks
3) amount payable - £ 529.25

12 monthly payments of £40.72 every 4 weeks followed by a final repayment of £40.61

5) APR 39.9%

total charge for credit (added immediately) £85.46

6)interest charges have been calculated on a COMPOUND INTEREST basis using a flat annual rate of 34% assuming all repayments blah blah blah

2) Early settlement examples
the following examples show the amount that would be payable to settle theis agreement early (based on £1000 credit rather than the actual loan amount) at the one quarter, half way and three quarters stages of the agreement. merely illustrative blah blah blah
13 weeks...£838...26 £608....39. £359

i know i SIGNED this but i was told over the phone NO early settlement penalty or charge. i didnt really read this as i said these people phoning me every day and making threats of court action so when this arrived i signed it and posted it immediately kind of thing


what can i DO......it no 4am and i will NOT sleep now.......HELP!!!

[Dipply75]

Hi Alanna4858, they really are sneaky gets at times. Defo kick up a stink, start and follow their complaints procedure first.

I think the first thing you could do is write a letter of complaint, asking for details of why your payments increased (what the purchase was, when, agreed terms at the time etc) and that when you advised them that you were in financial difficulty they ignored your basic rights and pressured you into further borrowing.

Is the figure of £443.79 correct, is that what you owed them when you signed?

[KittyClaws858]

Hi there, I know! I am writing to them to complain as to the reason why my payments increased so much. Yes I had purchased some items the month before but to jump from around £30 to £95 a month was tough. When i contacted them to ask why it had increased this was the reason i was given, then when i informed them that under no circumstances could i be paying £95 a month from then (roughly July) to November or whenever she told me my payments would go back down. I told her that I was a student on benefits and although i might be able to pay off a lot from September when i get my student support she literally just told me my only option was to refinance the whole lot. She tried to get me into a 3 year deal depsite me saying id be ok come septemeber i was just in some difficulty as im a single parent and it was the holidys and i JUST moved into a flat of my own (rented) i only needed the year.

The figure of £443 is correct but they add an upfront charge of £85 pounds as the 'interest' up front for the year finance. I think thts a scandal because it puts extra pressure on someone but anyway. That brings my total up to £500 odds.

Yesterday I got my student support. I thought about paying £250 straight away to Littlewoods but since i refinanced the thing i thought i may as well improve my credit rating a litte and pay it monthly now I am back on track. They are wanting £40 odd a month but im going to pay £50- £100 depending.