Written by John Kruse, one of the leading experts on Bailiff Law, this consumer friendly guide is essential reading for anyone who comes into contact with a bailiff.
The book is easy to understand and clearly explains the rights
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I have read with interest how many people have won against Egg on refund of charges, interest etc by using the "winning template letter" however I cant seem to locate this can anyone provide me with the link please?
I am trying to reclaim £900 in interest that has been charged in the last year due to them not defaulting the agreement. I have had two letters in writing one a year ago and one six months ago confirming they will be defaulting the agreement but they have only done this last month and so charged interest in the meantime.
Also are they legally obliged to send a default notice out and have some proof of sending? I have not received the default notice but upon speaking to them was advised it was sent out to me.
It seems a lot of money £900, does their credit agreements allow for this high level of charges?
Numerous claimants have tried to wrestle with Egg over the issuance of Default Notice but hardly anybody has reported success, unless there was a physical mixup over wrong account.
On credit agreements there is no known stipulation of upper limit for penalty charges.
Once you have itemised dates and amounts for Overlimit Gharge and Late Payment Charge (culled from S.A.R - (Subject access request) or listing response from Egg) any English letter stating your reclaim will do. Egg has received thousands of these and hardly read them. They will send a template response saying OFT has tacitly indicated £16 charge is lawful if £20 was ever unlawful, and that Egg will only refund the £4 difference per charge. This Egg letter has been known to baffle the uninitiated.
You however can send off in response the second "Winning Template Letter" comprehensively refuting Egg's letter. All past experience showed this should be sufficient, and Egg will within weeks, or even within days, cough up in full plus volunteering 8% compensatory interest per annum. On recent experience Egg will be adamant about refunding only into your Egg account even if already closed, i.e. reduce the outstanding Egg balance. If you have none outstanding, then Egg will refund by BACS payment into you bank account which you nominate.
This choreographed ritual dance has worked for everybody else, so no reason why it should not work for you. Good luck!
Thanks for your response. The £900 charges are for a loan and not a Egg card, however I will get a statement of account from them so I can establish what all the charges relate to.
Will the winning template letter work in my case if thhe charges relate to interest on an egg loan?
Will the winning template letter work in my case if thhe charges relate to intereston an Egg loan?
"Overlimit Charge" would not apply on loan accounts. "Late Payment Charge" would, and are believed to be unlawful and recoverable as per Dunlop v Garage precedent.
There is nothing unlawful or reclaimable about debit interest being levied on a Loan Account if it was levied on capital borrowed, at the correct rate on the correct dates as agreed in the contract. Once you fall behind on monthly payments, I doubt if Egg have a legal obligation to close your account and stop accrual of debit interest, for the reason that you owed a debt and Egg were being deprived of use of their own capital.
The "reclaim of interest" mentioned in many card reclaim postings related to the debit interest visible on monthly statements, levied on penalty charges (not on lawful purchases or cash advances). If Egg were to tacitly concede on refunding unlawful charges, so the argument goes, there was no further basis for not refunding debit interest accrued on aforesaid unlawful charges. Since credit crunch bad times however, Egg would not budge beyond refunding 8% per annum compensatory interest, and few claimants have had the appetite to wrestle with Egg. The interest difference would not have been great, and there are difficult arguments and calculations to be made.
If you seek to recover debit interest, you will need to provide a case which will stand up in court, what exactly was unlawful.
Ok to clarify I had a balance of x amount a year ago, at which time in order for them to accept reduced payments and stop charging further interest they advised a default notice would be served. It wasnt and further interest was charged.
Six months down the line upon review of repayment arrangement I was again advised about issue of default for interest charges to stop. And again a default was not served.
A further six months down the line and further interest being charged, I have finally been advised a default notice is being sent and that there was an error on their part.
However they advise the additional £900 they have charged on top of the loan balance (with interest) they cannot refund.
So the total I owe them has now increased by £900 and means all the payments I have made in the last year have not reduced the total amount I owe them but infact the total amount I owe them has increased considerably.
Yours appears to be a claim for compensation due to Egg not honouring an undertaking they gave you.
(1) Do you have said undertaking in writing?
(2) Did they volunteer to freeze your debit interest?
(3) Do you have in writing Egg's admission they made an error in not issuing the DN, and more importantly not freezing your interest as they said, if they said?
If yes to all 3,
you could tell Egg you would go to the Financial Ombudsman Service with your case -- which will cost Egg £400 fee win lose or draw.
New legislation came in about "fairness from traders" last summer, see the thread from boss man Bankfodder below. Whichever way you pursue, I have not read of a precedent for a claim like yours let alone a successful one, so have no grounds to be encouraging, but good luck.
It was all verbal re the interest and charges stopping with the default.
I have confirmation in writing that they will be defaulting the agreement (this was dated a year ago) and proof it did not happen.
I am however waiting on a letter from their customer relations dept who I spoke to who did try and fight my corner with their team leader and manager re the additional charges but was unsuccessful. I am yet to see the actual wording of this letter but it might be useful. I have been advised I could go to the Financial Ombudsman and that I could refer to the Banking Code by this person.
I will take a look at that link re the legislation.
I received a letter from them confirming that the default they issued for the £900 less than current balance had not been issued to me and so they were removing that and sending a new default notice.
The new default notice included the £900 charges and so was for £900 more than the previous default.
While the default was removed my account balance on credit files initially showed balance without the £900 charges added on. (This has recently been updated and now shows it with the £900 charges).
The new default is not yet on my credit file.
I requested a full statement of account and this shows that interest was stopped from the date I was first advised a default will be sent (November last year) and also no charges were applied since then.
I.e. the balance is the £900 less than general correspondence from them, what the default notice states on it and my credit files shows on it.
template letter to reclaim charges?
how many people have won against Egg
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Re: template letter to reclaim charges?
