ADVICE PLEASE: Logbook Loan late payment charges

[Wikkitt]

Please I need some advice

 

'I took out a logbook loan in Dec 2011 for £700 repayment was 2500, today I received a statement (first one I have ever received) on looking at this I have noticed that they have charged me £12 late payment charges every 7 days that my payment has not been received this was also charged for every letter, email or sms they sent, sometimes this could be 2 or 3 times in the same day as they emailed me and sms me on the same day. I have also noticed that they have not put onto the statement my 22nd and 29th March payments, I will do a more thorough check to find out if anymore of my payments are missing. I will be contacting them about the missing payments.

 

They say I still have £1000 outstanding but with the missing payments (the 2 I mentioned) and the charges they have applied this could actually drop that down to only £500 I owe them.

 

My question is can I claim back the charges they have put onto the account?

 

PS: I have my logbook as a new look one was issued during last year and the DVLA sent it to me.

[PublicDefender]

They can apply charges if they are have outline them at the start of the agreement, I would ask them to prove they have sent the letters, msg, calls they are charging for - no proof - no charge is what i say, also the late payment charge should only be applicable once per month, not onc every 7 days, unless your agreement is a weekly payment plan not monthly - If they wont budge contact the financial obudsman

[slick132]

Hi Wikkitt,

 

Re PD's comments above, I disagree.

 

The £12 fees applied sound like penalties to me and, as such, would be unenforceable at law. Exactly the same as credit card, catalogue and bank loan a/c's.

 

However, the FOS will not back up any claim for a refund. They'll just say the charges are in line with the limit set by The OFT, so they're ok.

 

With credit card charges, if the bank won't refund them, we advise taking court action to get your money back.

 

Take a look at the Barclaycard forum as there are many ongoing cases of penalty charge reclaims there.

 

Also, see the BC successes here - http://www.consumeractiongroup.co.uk/forum/forumdisplay.php?97-Barclays-BCard-and-Woolwich-successes