Do i have to pay interest on my catalogs?

[crk81]

Hello, If anyone could give me some adivce i have accounts with companys such as marshallward,la redoute and vertbaudet and additions direct which all have high interest rate on the balances, They are all paid on time etc.. and i would like to see if i could stop them adding the interest on my accounts as its getting were the interest is like 60-80% of my monthly min payment to pay them, If they could not produce a credit agreement that i have signed do ya think i would be able to get away with paying interest as i could just say i didnt agree for interest added to my account.

any advice off anyone i will be grateful for.

Also i have paid them all on time and regular so i dont want to go along the lines of not paying so that it gets defaulted and then ask them to freeze interest. I no longer wish to use the accounts and just want them paid off but with the high apr its taken forever.

thanks in advance

[blacksheep1979]

Of course they have every right to add interest - if you have not fully cleared your account then they will charge just like any credit card or store card would

[crk81]

Even if they cant produce a credit agreement signed by myself or something to say that i have agreed to pay such high interest rates?

[meagain]

"Manifestation of assent". Your having used the account stands as evidence that you have accepted the conditions that come with it.

[marlow]

So how does "us having paid loan repayments" not make sufficient evidence for them when loan companies cannot find our agreements thus rendering the loan unenforceable?

[crk81]

Thats what im meaning, ive had this account for years and havnt ordered anything for a long time, the interest is like 85% of the min payment which the balance only gets reduced by about £2 a month and it will take about 2 years to clear it at the current rate. I've asked the company to supply me with my orginal credit agreement but so far they havnt supplied it. Would this mean that i could at least come to an arrangment with them to ask for the interest to be stopped on the account so i can clear the balance off.

[dolly]

Originally Posted by crk81

I've asked the company to supply me with my orginal credit agreement but so far they havnt supplied it.

Did you do a proper CCA request enclosing £1 and how long ago was this? Did you send it recorded delivery?

[crk81]

Nope, I emailed them the request and they sent me a standard letting giving my current balance repayment terms and asked me to get in touch if i was disputing the balance, i have since emailed them again and they emailed back and said to check the catalog for t&c and i emailed back again requesting my CCA and they havnt getting back yet...

[blacksheep1979]

If you ordered by post part of the order form would probably have included the interest charges and could be deemed as a contract, same if by the internet tbh you probably don't have a leg to stand on. If you end up going to court for non payment or to try recoup the interest charges then a judge is going to take a dim view of this and probably see you as a 'chancer' trying to wriggle out of payments.

'manifestation of assent' what nonsense is that...if you dont mind my asking....Catalogue trading falls within the scope of the consumer credit act and is therefore, a regulated agreement to which the act applies.
If the formalities havent been complied with or the agreement does not contain the prescribed terms then it may unenforceable. Having ordered goods or making payments in accordance with the terms and conditions is of no relevence.

Whether interest can be charged depends onwhether there is a term(s) of the contract that allows it. Catalogues very rarely get it right....it is most likely to be an unenforceable agreement.

[meagain]

Originally Posted by S J

'manifestation of assent' what nonsense is that...

It's the most basic principle of contract law, namely whether or not a contract exists in the first place. It can be a signature, a verbal agreement, or an attempt to perform under the contract - all of which suggest that someone intended to be bound to the contract, therefore there is a contract. Of course, this doesn't decide whether or not the relevant part of the contract is enforceable, only whether the contract exists in the first place.

[crk81]

Well today i received a "blank" credit agreement from one of my catalog companies and it states that the interest is APR 39.7% Variable. I have sent them a email asking once again for them to provide me a credit agreement to say that i agreed to such a high rate of interest but i dont think they are going to be able to provide it, ive also asked them to stop any interest being added to my account and to credit my account any past interest back to my account.

Think about it a company surely can not just add interest onto your account if you never signed any kind of credit agreement saying you are accepting that they can add interest to any balance that is carried over month by month on outstanding balance......

[meagain]

Originally Posted by crk81

Think about it a company surely can not just add interest onto your account if you never signed any kind of credit agreement saying you are accepting that they can add interest to any balance that is carried over month by month on outstanding balance......

They can add all the interest they like. Of course, whether or not you actually have to pay it is another matter

This is how it looks to me:

Because there has been business conducted under the proposed terms of the contract, it is implied that you agreed to it, therefore there is a contract. They have to supply the goods, and you have to pay for them. However, by the sounds of things, parts of the contract might not apply to you if you haven't signed a physical copy of the agreement, namely the bits about you paying interest.

Your options are:

1. Pay the interest, and reclaim it all later (rather ironically, you would be entitled to interest on top)

2. Don't pay the interest, wait for them to come knocking only to be found wanting.

It's entirely your decision, but you may want to be aware of the following:

* The interest is mounting up, and at 39.7% (doubtless that will be past 40% next week after the BoE rate rise) it'll accumulate quickly. If by some chance they are able to force you to pay, you'll face a bigger bill further down the line, especially if you've got a large outstanding balance already.

* If they decide to chase you, while they may not be successful in getting a CCJ they might try nasty things like trying to register a default against your records. We know that it probably isn't allowed. They also know this, but companies tend not to let little things like the law stand in the way of a healthy profit.

Your next step should, without doubt, be to "thank" them for the blank copy telling them that you now need a copy with your signature on (preferably one that you actually signed, as opposed to one mocked up with a photocopier*).

Let us know how you get on, and good luck (you'll need a little to get you started ).

(* Don't laugh. I've actually seen documents assembled in this way in the absence of a usable original.)

[crk81]

When i pay the min payment 80% of it is the interest for the month and the only mention of interest i can see if in the credit agreement. the debt is paid on time all the time and im not in arrears or anything, ive contacted them asking them to provide a copy of a agreement signed by myself and requested that they stop adding interest on my account and that they refund any past interest back to my account. I'll keep you's updated with what happens. and thanks for all your responses.

[blacksheep1979]

Of course when you pay the min most goes towards the interest, these companies don't want you to pay the money off, but to keep making money from the interest.

The question is, when you signed up and bought stuff did you know you would have to pay interest on all outstanding monies owed?

[crk81]

I wasn't aware of any interest until the statement come in, this is why im trying to see if i can find a way out of paying their very high interest rate, yeah paying the min payment is just want they want my balance is only going down by a few pound a month...

[blacksheep1979]

So you couldn't originally afford what you bought? Therefore you must have realised that there was going to be credit involved somewhere and as such a charge.

Sorry if this sounds harsh but thats the line they will be taking if it goes to court.

[crk81]

No doesnt sound harsh am open to any comments ppl wish to make

There is many catalogs dont charge interest such as choice, littlewoods etc..

[blacksheep1979]

whilst they (choices, littlewoods) give an introductory 0% period they do charge interest which for most catalogues is the norm, I really think you don't stand much of a chance with this. If as soon as you realised you had been charged interest complained and maybe settled the account in full you could have got a refund of the initial interest amount but as you have had these accounts a while and used them (especially if you had previously bought items and been charged interest) then it will be deemed you had knowledge of these interest rates and agreed to them.