In April 2005 I took out a £9500 loan. In June 2006, I fell ill and as a result, I am now permanently disabled and unfit to work.

I took out insurance with the loan which covered the payments for one year. Since then, I have been paying it off myself out of my only source of income, benefits. This has been extremely difficult for me with a wife and 2 young children, but at last I can see the end coming as I make the last payment in April 2010.

IF have been chasing me for some time now over charges they have put onto my account for late payments & letters, telephone charges etc. I have always made my payments in order (I have never been over a month in arrears) but sometimes the money I have coming in does not arrive in time to pay them on the date they want it. I have repeatedly explained this to them but they still keep piling on the charges. These charges amount to a considerable amount of money. They charge me £10 for a phone call, £25 for a letter and £25 for a "admin arrears charge".

Please could someone tell me if these charges are legal? I really can't afford them and yet I can do nothing about it. Please help! They are calling me morning, noon and night and it's got to the stage where I don't answer the phone anymore.

Hello and Welcome,

Might be worth your while sending them a CCA request,

A debt becomes unenforceable under the CCA if a creditor does not supply a true copy of the signed credit agreement within 12 working days of it being requested.

The debt remains unenforceable for as long as the creditor fails to produce the signed credit agreement – this means if they produce the agreement some months down the line, they are quite within their rights to enforce it. They do not need to take any further action to enforce the debt. A debtor cannot take any action against the creditor for failing to produce the signed credit agreement within the prescribed time, because that is up to the agencies that the offence has been reported to. Any sanctions that may be imposed are at the discretion of these agencies, and it is not a matter that the debtor can take to the civil court.

If after requesting a true copy of a signed credit agreement the creditor fails to produce it, the debtor may now however be in a good position to make a full and final offer to clear the debt.

The template's in this link.

http://www.consumerforums.com/resources/templates-library/86-debt-collectors/581-cca-request-letter

Regards.

Scott.

Dear Scott

Thank you very very much for your welcome and detailed answer. I have immediately written the letter you suggested and sent it as per your instructions. I can't pretend to understand what the effect of this letter will/might be but I'm sure it will all become clearer!?

Perhaps I may contact you again when I get a response from them? Once again, my sincere thanks for your help.

Kind regards

"Cindle"

Hi,

I'm also sure you can claim these charges back, I'm looking into it and will get back to you shortly.

Regards.

Scott.

Hi Scott

This morning, I received a photocopy of my original Credit Agreement and the Terms and Conditions (although the terms & conditions are very difficult to read down the left hand side). The Credit Agreement does contain my signature.

I'm sorry to have to ask you more questions after you've been so helpful but is there anything I can do now? I suppose I accept their right to impose certain charges but the amount is ridiculous; £25.00 for basically pressing a button!

I would be very grateful for any further assistance you could offer me.

Kind regards

'Cindle'

Hi,

You should re-claim all the charges, do you have all your statements since you opened the account.

Regards.

Scott.

Hi Scott

Initially, I couldn't get any statement out of them. Then on 17th March 09, they sent a letter and statement: "From 1st Oct 2008 it has been a legal requirement for us to send you statements relating to your credit agreement. Your first statement will only show transactions from this date up to when it was sent and may cover a period of less than twelve months."

Since then, I have received a number of statements covering the full term of the loan.

Kind regards

Phil

Have you counted up the charges, Phil ?

Hi Scott

The total charges, to date, are £297.95. I have been keeping a spreadsheet of the account since it opened and could send this to you by e-mail if that would help? My payment last month was one day late (due on the 17th, received by them on the 18th). On the 22nd, they put in an "Admin Arrears Charge" of £25.00.

Once again, my sincere gratitude.

Phil

Hi Scott

A development: Without warning, my entire account, including the remaining balance has been passed to "Albion Collections Ltd". I don't know how they can do this, I am not behind with my payments to the account and the only bit I am contesting are the charges. The letter arrived this morning but there was a phone message on my '1571' last night. I ignored it as I had no idea who "Albion" were.

I am now getting very worried. I cannot afford to pay off the balance in one lump and my wife is terrified that these people could turn up at the door.

Any advise would be very gratefully received.

Kind regards

Phil

Hi,

Send Intelligent Finance this...........................

http://www.consumerforums.com/resources/templates-library/48-bank-templates/121-bookworm

I'll have a look at it later, may need 'tweeked' a bit.

There is no way they can make you pay off the balance in full, so I would'nt worry about that.

Regards.

Scott.

Hi Scott

Thank you so much for your reply. It is of great comfort to us to know that 'IF' cannot enforce this. Quite frankly, it scared the wits out of me and I have nearly hit the roof every time the phone has rung today.

Just to clarify, do you want me to send the letter as it is or do you want me to wait until you have 'tweeked' it a bit?

Once again, my sincere gratitude. I don't know how we can ever re-pay you.

Kindest regards

Phil

Hi, Phil.

I'm just trying to get some help with the template, another Mod has told me Albion Collections Ltd, are the 'In House' collection department within Halifax (HBOS) Intelligent Finance is a division of Bank of Scotland plc.

Regards.

Scott.

Hi Scott

Thank you so much. I'll wait for you to contact me again. Sorry to keep pestering you.

Kind regards

Phil

Phil, don't think much needs changing, just want something simple.

I'd remove this bit (unlawful at Common Law, Statute and recent Consumer regulations). and replace it with the word unfair.

Also delete this bit...........

I am frankly shocked that you have operated my account in this way as I had always reposed confidence in your integrity and expertise as my fiduciary.

That should do.

Regards.

Scott.

Hi Scott

That's marvellous. I'll get it in the post tomorrow. Do you think that I will have no further contact from "Albion"?

I really don't want to push my luck with you; you are being so kind and helpful; but, what should I do about all these fees. I know it's not a huge amount of money but in my situation £5:00 is a lot of money!! Although I have maintained my loan payments at the agreed rate, they will have been appropriating them for their fees and charges thus making me in arrears.

I'd be really grateful for some advice or help with this.

Sorry for this.

Kindest regards

Phil

Hi,

I've been there myself, many times as you'll see from the claims in my signature, the bank applying charge upon charge where it makes it impossible for you to catch up and get back into credit.

Best thing to do is keep everything in writing, don't bother phoning them.

Wait and see what sort of response you get from your charges letter, they will more than likely give you fob off about they believe there charges are fair ect.

Let us know how they respond.

If 'Albion' do get in touch again, write to them,telling them you are disputing the amount due, regarding the charges they have applied.

I'll see if I can find anything more I can get to help you.

This 'link' might help.

http://www.consumerforums.com/the-news/news/625-not-all-charges-are-bank-charges-so-claim-them-back

Regards.

Scott.

Hi Scott

Thank you so much for your advice and comfort. I took out the loan when I was fit and healthy and I'm now disabled and useless. There's nothing I can do to control the amount of money coming into the house which is so frustrating and humiliating; I almost feel as if Intelligent Finance are deliberately kicking me whilst I'm down!

I'll be back in touch with you when I get a reply.

Thank you so much again.

Kindest regards

Phil

Hi, Phil.

I'm sorry to read about the situation you find yourself in, but you have to stay positive, hopefully things will get better when you 'win' this one.

Take care.

Scott.

Hi Scott.

Albion are becoming very persistent with their phone calls and I have, therefore, drafted the following letter to them. Could you just cast your eye down it for me? I'd love to shout and swear but that won't get us anywhere!!

Dear Sir/Madam

Ref: Bank of Scotland A/C #: 8424112698624

I am in receipt of a letter from you dated 7th March 2010. I notice from the account number that you are working for Intelligent Finance and I also note that you are the “in house” collections department for Halifax/Bank of Scotland which own Intelligent Finance. As such, you are fully aware of the situation regarding Intelligent Finance and myself.

However, for your benefit, I will state that I am in dispute with Intelligent Finance over charges that they have levied on my account. My payments to the account (less charges) are fully up to date and I am aware, as are you, that you cannot enforce your demand to have the account paid in full, whilst I am maintaining my payments.

I do not discuss my financial affairs on the telephone. As such, I would ask that you cease and desist from calling my house morning, noon and night. Any communication between Intelligent Finance and myself will be conducted in writing.

I am awaiting a reply from Intelligent Finance to my letter of the 12th March 2010 and following discussion with my legal advisor, I will be reverting, direct, to Intelligent Finance.

Your involvement with my account at this stage is, therefore, as unnecessary as it is unwelcome.

Yours faithfully

I'd welcome any comments. Thank you so much Scott.

Kindest regards

Phil

Hi Scott

I have now received a reply from the Halifax/Intelligent Finance. As you guessed, it fobs off my complaint and states that all charges will remain on my account. It also states that the default notice will remain on my record with Credit Reference Agencies.

Do you have any suggestions on how I should proceed from here? I have received no reply to my letter to Albion and I must say that the phone calls appear to have stopped, at least for now!!

Kindest regards

Phil

Hi Scott

The telephone calls from Albion are being received at an alarming rate as are their demands for payment. I received another letter from them this morning demanding full payment immediately; they made no mention of the letter I sent to them.

I realise you have given me more of your time than I have any right to expect but could I ask you to direct me to where I can find template letters regarding their charges. Surely they cannot charge me £25.00 for a letter and really expect me to pay it? I would really appreciate any help.

Kindest regards

Phil

Hi, Phil.

I'm going to have a look around for the best way to advise you.

Regards.

Scott.

Hi Scott

Have you had a chance to look at anything yet? The situation now is that I have paid off the entire loan amount; it's just the charges remaining - £310.71. Any assistance would be very gratefully received.

Thank you

Phil