"Very/Index" Penalty Charges Dispute

[bordercollie]

My wife has had a Flexible Account for the last 5 years, originally with "Index Direct" but now transferred to "Very"- same company- Littlewoods.

 

Her original signed Credit Agreement had no clauses in it, for imposing Late Payment Penalty Charges, but in October 2008, she received with her monthly statement, a leaflet stating that w/e immediately, a Late Payment Fee of £12, as an addition to the Agreement Terms, would be imposed to her account if any future payment was late.

 

Acting on advice, she immediately wrote back to "Index" at the address on her statement, rejecting this alteration to her original terms and conditions listed in the Credit Agreement which she had signed.

 

"Index" didn't acknowledge nor reply to this letter, so a 2nd letter was sent out. They didn't respond to this letter either.

 

She then phoned up "Index" and was told they didn't have any entry on their computer system about her rejection of the Penalty Fee imposition.

 

So, on November 13th, 2008, she completed an online Complaint Form to the Financial Ombudsman Service, sending them copies of both the leaflet announcing the Penalty Fee, her Consumer Credit Contract, plus copies of both her unanswered rejection letters to "Index".

 

As a result of doing this, she was contacted and told by "Index" that they would not change her Contract terms and conditions, but she had to continue paying off the account until fully paid, and during this time she would not be allowed to make any new purchases on her account. This she did- she made no new purchases since that date, plus she was always prompt with her monthly payments. Her account balance at November 2009 was only £65.

 

Her December 2009 monthly payment was due to "Very" (who had taken over her former "Index" account) on December 21st, 2009, so she was careful to post off her cheque 8 days earlier, on December 13th.

 

However, "Very" says they didn't process her cheque until December 22nd- 1 day later, and have imposed a £12 Late Payment Penalty Fee on her account, despite her rejecting this specific alteration to her original Consumer Credit Contract, a year earlier.

 

Speaking to "Very" on the phone, trying to explain the rejection of the change to her Contract, only got "if she was late with her monthly payment, she has to pay the £12 Charge, as per her Credit Agreement"

Got a dumb response when I tried to explain to the supervisor that her Credit Agreement had NO Penalty Clause in it, plus the supervisor said she had a copy of "Very's" Credit Agreement in front of her, and it had the Penalty Clause in it. Trying to explain my wife's original Credit Agreement was signed back in 2004, and was with "Index Extra" got nowhere.

 

Where should I go next- I feel like I should go to my local civil court and demand monetary redress.

 

"Very" equals "Very Thick".

 

Border Collie of Scotland.

[Conniff]

Personally I would only pay the outstanding amount and let them fight you for the £12. They will probably close the account unless you agree to this new penalty, but that is the choice you can make.

 

You say you were 'contacted' by Very, I don't suppose that was in a letter?