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The Funding Corporation Charges


nbart
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Last year I decided to take out a cosolidation loan to pay off outstanding credit card accounts which I was unable to pay due to illness. My monthly payments were paid through D/D. I took the loan out with Magic Loans who used the Funding Corporation. Over the last 9 months due to insufficient funds in my account at the date of payment not only was I charged by the bank for retirning the request but was also charged by the funding Corporation. If a payment had been returned the Funding corporation would telephone and I would make a payment over the phone.

Earlier this year I successfully reclaimed charges from my bank, however when two D/Ds were returned to the Funding Corporation the bank stopped the D/D.

I thought no more of this since I phoned every month to pay on the day with a debit card. Last month the Funding Corporation phoned me a day after the payment was due, on my mobile and landline several times during the day. When I answered I was told that as well as the payment due I had to pay another £120 charges. Annoyed I asked what these charges were for and was told for D/D returns. After getting no joy from the operator I asked to speak to her supervisor, who after several minutes replied. He told me that he had been listening in on the conversation. On questioning him it transpired that several charges had been applied to my account. Since no statements had been sent to me, as is company policy, I was clueless as to what these charges were for. After a heated conversation I did as he suggested and wrote for statements of my account.

A week later the statement arrived together with a highlighted terms and agreements document. Several charges had been made to my account, £40 for returned D/D, £30 for memos etc. In the conversation with the supervisor when mentioning the cost of the charges he clearly stated that as I had a mortgage account( this is actually a secured loan account) the issue of reclaiming penalty charges didn't apply to them. On speaking again to the operator I asked clearly several times if the charges applied to my account were penalty charges to which she replied every time"yes these are penalty charges" she then refered to a paragraph of the agreement which refered to charges.

Last week the payments were due again and the telephone began to ring. This time they used number witheld, but I knew it was them as they left there usual message . Payment was sent to them by post. I also wrote a letter using the telephone harasment template telling them to contact me in writing only and stated that any further calls would be recorded and sent a template letter requesting refund of penalty charges.

Their first reply informed me that as they are a "telephone based company" all contact with customers was made by telephone as they charge £30 for every letter sent. They also repliedthat they did not give permission for me to record telephone conversations as such calls would be null and void. Finally the state that this letter added another £30 fee to my account. Today I received two more letters, one a response from their complaints dept and two , one for myself and one for my wife each stating that they had not received my payment and were adding another £30 to my account for sending this letter.

It will be obvious that their "investigations" will take time but I have given them the statuatory 14 days letter regarding fee refunds.

 

Several questions have been raised:-

 

Are they exempt from customers reclaiming charges?

Can they continue not to supply statements unless specifically requested? and if requested to send monthly statements should they ?

If nowhere in their information including terms amd conditions states that they are a telephone based company can they make you telephone rather than send letters when as is an individuals right to ask for no calls?

Can they charge £30 or whatever fee for contact by mail?

Can they stop you from recording telephone conversations?

I would appreciate any imput.

 

Sorry for such a long thread.

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Are they exempt from customers reclaiming charges? Certainly NOT

Can they continue not to supply statements unless specifically requested? and if requested to send monthly statements should they ? As this is a loan they should be supplying statements

If nowhere in their information including terms amd conditions states that they are a telephone based company can they make you telephone rather than send letters when as is an individuals right to ask for no calls? You can always ask for no calls, wheteher they agree or not is another question. This is one of the OFT collection guidelines.

Can they charge £30 or whatever fee for contact by mail? *Cough* Yeah right

Can they stop you from recording telephone conversations? Nope, but if they don't agree it cannot be used in evidence

 

 

Go for the charges, these "people" are taking the mick with these unlawful charges.

  • Haha 1

Be VERY careful whose advice you listen too

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  • 3 weeks later...

Hi nbart

 

See my thread. http://www.consumeractiongroup.co.uk/forum/other-institutions/113419-funding-corporation.html?highlight=funding+corporation

 

Every time you get a telephone call or letter email all the addresses on that thread. Also advise them that you will be taking them to court if the harassment persists.

 

They may ban your email address but just set up another one.

 

They will stop hounding you after a while but if not take action through the courts. My case is stayed at the moment until the 30th November, it is based on harassment, illegal charges and fiddling with my credit file.

 

If you do email them make sure that you say hello from "their greatest fan" (me) they know who I am.:p

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I have today received a reply to my letters requesting refund of charges from the Funding Corporation:-

 

1. As advised the OFT statement did not apply to bank charges or loan charges. The OFT statement of 5 April 2006 was amended to reflect this the following month.

On reading through the Oft statement of 18 May 2006 it states "The OFT also calls on banks and other financial businesses to apply the same principles when calculating default charges in other consumer contracts such as bank overdrafts, store card contracts and mortgages where and as appropriate" ?????

2. Section 5 of your Credit Agreement details the fees applicable should you breach the terms of the Agreement. You state in your letter that we concealed the true nature of the charges, clearly this is not the case.

3. I confirm the total amount of fees paid by you to date is £130, and there are a further £130 of outstanding fees on the agreement.

When reclaiming fees can fees that have been added to my account but not paid be reclaimed? Anyone help?

4. The charges have been applied in accordance with the terms and conditions you agreed to by signing the credit Agreement, for breach of contract and our costs incurred in contacting you to recover the monies. As per our telephone conversation this extends beyond sending a letter to you.

5. It is not possible to correspond only in writing with you.

Isn't this a letter?

6. We do not consider the contact to be harassment as it is the pursuit of a legitimate debt, and our contact is in accordance with the OFT Debt Collection Guidelines.

 

In view of the above we do not accept your request for a refund of the charges. I appreciate this is not the answer you were looking for and regret I am unable to assist you further.

Please note that under the terms of our Complaints Proceedure, this is our final response.

 

This is probably their standard "sod off" letter. But can anyone clarify the situation whereby charges have been applied to an account but not paid?

 

I am continuing with the claim through the court route but need to know about these charges.

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More or less what got.

 

Have a read this? National Debtline England & Wales | Debt Advice | Factsheet 03 Harassment

 

I used some information here in my defence to their counterclaim for example

 

"Charges should not be levied unfairly."

  • not putting the specific amounts that can be added for collection costs in the original credit agreement;

"Putting pressure on debtors or third parties is considered to be oppressive."

  • contacting you too frequently;
  • ignoring disputes about whether you owe the money;

You could use this in your next communication with them or possibly for the court if need be.

 

When reclaiming fees can fees that have been added to my account but not paid be reclaimed? Anyone help?

 

That is no problem. On the particulars of the claim you could state that you want them crediting back to your account with the Funding Corp. I have another stayed court case with the Nationwide. They said I owe them £317 of charges. I have taken them to court to get this taken off.

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