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Can anyone help please? I am being sued by Direct Line for the full value of the uncollected monthly payments on a five year (unsecured) personal loan after I fell behind with my installments.
Clause 4 of my agreement with Direct Line states: If you fail to make any of your monthly repayments on the date agreed, we will be entitled to charge you interest on the overdue amount on a daily basis from when we should have received the payment until we actually receive it. this is called "default interest". Default interest will be charged at the rate which applies to this Agreement. We may also decide to end the Agreement and demand immediate payment of the whole amount of the Loan, together with interest, applicable charges and costs.
Direct Line did end my agreement with them and their claim is for the full outstanding amount.
My question is: Do you consider the last sentence to be a penalty clause/penalty charge? As it does not refer to Direct Line recovering their liquidated damages from me. In fact they state that they will recover all the uncollected payments - which also include PPI which I understand they should give me a rebate against.
Direct Line - V - davidp
on the overdue amount on a daily basis from when we should have received the payment until we actually receive it. this is called "default interest". Default interest will be charged at the rate which applies to this Agreement. We may also decide to end the Agreement and demand immediate payment of the whole amount of the Loan, together with interest, applicable charges and costs.
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