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I need to find out whether i can be charged £20 per letter that the loan company sends out informing me of a default or if this falls under the same category as bank charges, ie illegal? Can anyone help??
My loan is now paid off but the company are now wanting £150 from me for defaulting.
Please read the FAQ's section before beginning, as you will have a lot to read and take on board first. If you then have any questions which you need answering, please feel free to post again after this.
We are here to help, but ultimately, its your claim and your responsibility!
I have read the FAQ section, I am new to this site and not very up on navigating around it!
My loan is actually paid off and they are wanting me to pay £150 at the end of this month to terminate the loan, but the £150 is just charges for default letters. Can i just send them a letter to say that i will not be paying them, can you point me in the right direction?
I posted earlier but didnt get a response, I urgently need to know if i have to pay charges for defaulting on a loan? The loan is now paid off but they are wanting to charge me for sending out default letters this amounts to £150 and they are wanting me to pay this tomorrow? Does anyone know where I stand with this? Can i refuse to pay it? Is there a letter I can send to the company explaining my reasons?? Please help I just need a guide towards the right direction
If its paid off then they should have included it in settlement, not afterwards, write ot them telling them you will not be paying it, and as far as your cocerned the account i settled, advise them that they had better not default you, as when an account is in dispute they are not supposed to regisiter it.
The loan company phoned me yesterday saying that if i did not pay the £150 default charges then they would start proceedings for reposession!! I am really scared now, she said that they dont have time to wait for me to write a letter, I have to get back to them today and let them know what i am doing. Yesterday I told them that I would not be paying the charges as like banks charging for being overdrawn if was not legal. She said to me that they were different to banks and that i had signed an agreement.
I had paid these sums of £20 due to DD not going out on time.
You could write a Prelim letter stating that the intended Default fees are Unlawful
Never know they may drop the case, thinking that you are someone who is in the know
Worth trying
Regards
Sophie-Jane
Yes I'm a Trucker Girl - explains why early posts
Thank you
Please Note
Advice & opinions of Sophie-Jane are offered informally, without prejudice and without liability. Please use your own judgment. Seek advice of a qualified insured professional if you have any doubts
1)Write to them clearly stating that you will not be paying the £150. Use the preliminary letter as a guideline. To issue repossession proceedings they have to prove that the charges are lawful. You would have your day in court at the repossession hearing where you could state your case
2)Pay the amount to them. Then make a claim against them for it afterwards. This will protect your home should you have any difficulties in the scenario above.
Whichever you choose you can claim against them for undue stress (and any related health problems, if any) which will be easy to prove as they are threatening to take your home from you.
I doubt if any court would repossess a home for such a small debt, but there may be others on here who could prove me wrong.
Thanks for all your help. Its actually my car that they are threatening to repossess.
Just feel a bit worried about it all, the loan was paid off last month and thought that was the last of it!! They say that they have actually reduced the charges from £580 to £150.
The thing is I called them when i was struggling to meet the payment and they are denying knowledge of any call now!
I work as a police officer and am always advising people to keep a diary of any dispute between two people/organisations/companies. An accurately kept diary is admissable evidence in court and if you record the times, dates and who you spoke to every time the court is likely to believe you.
Whether they have reduced the charges or not, if they are unlawful charges then you still do not have to pay them. You may even have a theft case if they remove the car without the legal power to do so.
Loan Default Charges
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