The Funding Corporation unfair charge reclaim (notice of default)

[newdad]

I'm after some advice

 

Back in june 2008 I purchased a car from ACF financed by TFC by way of a credit agreement linked to a Bill Of Sale.

 

A week ago I received a statement of account from TFC showing the account still had a balance of £1300 to pay

(I thought the agreement was totally paid up and the car was owned outright by me).

 

On the statement was lots of charges for late payments and 'admin' charges.

When I added them up, the charges are more than the outstanding balance by about £400!

 

TFC have now sent me a notice of default sums, and

 

my question is how do I go about reclaiming these charges?

(they vary from £10 - £250 per charge)

 

Also I'm concerned as they might try to repossess the car as it was secured by a Bill of Sale

even though the balance is made up entirely of charges.

 

I can upload a copy of the statements if it helps

[BankFodder]

£250 for a charge????

[BankFodder]

Please can you tell us more about the charges. What are they for? How many of them? What is the total?

What do they say about charges in their T&Cs?

[newdad]

hi BF here's the breakdown (hopefully it makes sense)

 

unpaid direct debit fees £260 (£40x5, £24x1, £12x3)

default fees £180 (£10x12, £30x2)

admin fees £1060 (£250x2 one of which is the arrangement fee, £30x8, £20x1, £10x30)

reschedule fees £100 (£50x2)

Option Fee £195 (this is a credit facility fee as per their T&C's)

 

total charges = £1795

 

outstanding balance of account of most recent statement = £1406

 

 

there is also a charge on the account for 'General Insurance' of £275.

 

I have no idea what this insurance is.

 

I did purchase their Mechanical Breakdown cover which was an additional £895 charged at 44.9%APR for the 60 month loan term

(even though I was missold it as it turns out the policy only covered the car for 2 years!)

 

cheers

[dx100uk]

you can reclaim the lot [bar poss the arrangement fee of £250]

and the option fee]

 

fill this in with each one.

 

CISheet v101.xls

 

put their int rate in cell d15

[newdad]

cheers DX I've used the compound interest spreadsheet you linked to, and have not included the arrangement fee or credit facility plus the unknown insurance, and the the calculation is £1370 in charges with £2751.72 compound interest. Total = £4121.72 ....does this sound right, as I wasn't aware the charge calculation was calculated using compound interest

 

cheers

[dx100uk]

yes its a loan ofcourse it is compounded

 

 

now lump the MCB & general insurance together and treat as PPI

 

use link 1 below and make a spreadsheet for that.

 

statint spreadsheet is at the end of link 1.

 

don't forget to enter EVERY penalty or PPI individually on their respective sheets.

on the date each payment or penalty occurred

[dx100uk]

have you checked the Bill of sale is registered?

 

dx

[newdad]

Hi DX, can you post the link please as I can't see one...cheers

 

I've had a look at the bill of sale,

I requested a copy of the registered bill of sale a couple of years ago,

what they sent me was a photocopy of the bill of sale and a detached A4 sheet with Supreme Court stamp on it,

a six digit stamped ref number, and my account number handwritten

 

Re, the mechanical breakdown cover,

 

I should have mentioned that I made a claim in 2009 for a damaged water pump

which was paid for under the Mechanical breakdown cover,

does this invalidate a missell claim?

[dx100uk]

darn sigs are down sri

 

if the MBC coughed

just input the figure they paid out on the date they did it [as a minus figure

then delete the resultant minus int figure in the next column.

 

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Read Here

2. Reclaim mis-sold PPI Read Here

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DX

RIP Martin3030

[newdad]

thanks DX ....I've completed both spreadsheets (penalty charges & mis-sold breakdown insurance)...I'll have a look at your reclaiming links for compiling the relevant letters.

 

will update when I hear anything from TFC....Once again thanks for your advice

[newdad]

just a quick addition, I'm using the consumerwiki link for the penalty charges letter template, but noticed it refers to the simple 8% interest spreadsheet. Can you confirm which spreadsheet to use (simple 8% or compound)?

[citizenB]

You need to use one of the spread sheets that are in the link below..

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?330996-Latest-Spreadsheets-PPI-Claims-and-Charges-Claims-Dec-2011

 

I think it is the 2nd spready that you require.. CISheet.

[newdad]

penalty charges refund request sent....I'm having trouble compiling a letter for the missold mechanical breakdown insurance refund as all the template letters I find are geared solely for PPI...Can anyone help me with a suitably worded letter please?

 

Thanks in advance

[dx100uk]

just replace PPI with MBI

 

same process

 

dx

[newdad]

cheers DX.....both reclaim letters and spreadsheets done, printed, & posted recorded delivery. Will update the thread when I get a response from TFC

[newdad]

an update on the thread..

 

..I've had a final response letter from TFC, and they've told me to get stuffed!.

 

...it's in their opinion that the charges applied to the account and I quote

"we believe this to be a fair and reasonable reflection of our costs involved as a result of your breach of contract"...

 

..I've contacted the financial ombudsman and started a complaint as there is so much incorrect information in their letter....

 

1) The amount of charges applied is incorrect

 

2) the date of last payment is incorrect, it even disagrees with the date shown on their enclosed statement of account!)

 

3) they claim the default has been applied correctly and will not amend it with the relevant CRA's...

 

They didn't send me a relevant default notice

and certainly no linked termination of account letter!....

 

4) They claim to have made over 1000 phone calls to me charged at £0.75..

.if they had made anything like that amount I'd have complained about harassment....

 

5) they also claim that by signing the credit agreement and bill of sale initially this and again I quote "by entering into the agreement you agreed to indemnify us against all costs incurred in enforcing the agreement"..........

 

.....I'd be interested to see what CAG members thoughts are!..

 

...As I mentioned, I've raised a complaint with the FOS,

as I'm intimidated with the prospect of having to take TFC to court if 'm totally honest

[SabreSheep]

Forget FOS IMO

 

Letter before action repeating the refund of charges and interest rate

wait 14 days

Issue a claim on N1 and take it to small claims court.

[theoldrouge]

1000 phone calls @ 75p £750????

 

please upload your agreement, statements and their rejection letter with all pers details removed

[dx100uk]

forget the FOS on PENALTY charges

they'll never go with you.

 

dx

[newdad]

a quick update, TFC/ACF have also turned down my claim that the Mechanical Breakdown Insurance was missold, so I guess it's time to take that to the FOS

 

Re. Penalty charges, the line from TFC is that they consider the charges fair, they have not charged any interest on them.........I have negotiated a full and final of £350 with them, and to be honest am inclined to go ahead with it as the thought of starting court proceedings fills me with dread!......as always though, any advice would be much appreciated!