Creation Finance - Interest Charge

[FunkyJMan]

Hi All,

 

Just looking for a quick bit of advice actually. We have recieved a letter from Creation Consumer Finance saying we owe roughly £150 in arrears, so I called them up to ask who they were as I didn't recall any agreements with them, it turned out to be the company that provided the interest free option on our sofa.

 

Basically it was an interest free option for 1 year, we paid it in full by cheque but they apparently didn't recieve the cheque until 3 days after the cut off date, which was back in August 06, since then we have heard nothing at all from them until recently with them requesting this figure of about £150. I asked them about it and they said it was part payment of the interest oweing on the account and that the balance is now over £3000 which we owe them as they are charging interest at almost 30% for the entire amount from the day we purchased the sofa which includes the 1 years interest free.

 

My question is, is that right that they do this? £3000 seems a huge amount of money, the original loan was for about £2000 if I remember and they have had that money for the last 12 month and we haven't heard a thing from them. They told me when I rang that they have conversations on tape between themselves and me throughout the year but that's a lie as I haven't spoken to them until this month.

 

If anyone is able to offer some assistance it would be much appreciated because they are saying they are taking me to court over it and I can't afford £3000 just like that especially not this close to Christmas.

 

Thanks a lot.

[seanamarts]

I would ask them for a copy of the tape for starters, if they have lied about that what else would they have lied about. seems a bit fishy to me .. but im not an expert... im sure some one of a little more knowledge will come to your rescue soon

[Surfer01]

Sounds very fishy!

[surprise]

Have you got a copy of the agreement you signed. If so, it should detail what the interest charges would be if you didn't settle on time.