Hitachi Finance Interest Free Loan

[julian]

In December 2006 a friend purchased some goods in a shop advertising Interest Free purchase. When the goods were selected he asked about the Interest Free offer. The people did not really seem to know about it but asked around the shop.

Eventually he was told that the offer was for 1 year interest free credit. A form was found and completed and the shop assistant went through a credit check with the credit supplier . A 20% deposit was required and he was told that the goods would not be order/delivered until the request for credit had been approved, and that could take 2 weeks. No interest would be payable until 12 months+1 from the day of purchase.

A couple of weeks later the contract was approved by the return of the signed form. The payment period was over 84 months, not what was expected and the cost for credit was almost the cost of the goods. (£2500 +£2300 approx.). Payments were to be made by direct debit starting when the interest payment ended. The contract stated that it was not subject to the CCA and that it could not be cancelled.

All was well-ish as he expected to pay off the debt before expiry of the interest free period. Unfortunately this did not happen and payments began to come out of the account 14 months after the purchase dare and 11 months after the delivery of the goods.

After some trouble the loan was sold onto Apex who have registered it on the CRA files with a start date of June 2008 and a default date of 2011 which was after it was dropped by Hitachi as a personal loan. They have not done anything except send an occasional reminder saying they are not currently demanding it.

This seems very strange ie
- no right to cancel when the loan was not approved until two weeks after the deposit on the goods was paid and its approval formalised
- imposition of the 84 month repayment which was expected to be 24 months max
- dates of default is in 2011 although Hitachi sold it in 2010
- supposed 2008 date of start of loan which is months after the interest free period ended

I have said stay quiet if nothing is happening, but I would be grateful of the reason why it would not be covered by CCA.

[julian]

Re: Hitachi Finance Interest Free Loan

Just been told that Apex have sent a letter stating something along the lines:-

We wrote to you recently to inform you we have been assigned your debt. You have not responded to our request for payment. We understand that this may be a difficult time and you may not be asked to repay the debt all a once. Please call to discuss you payment options.

As it is a few years since this started, the have not written recently, but it is the first request for payment.

My advice would be to ignore this letter and wait to see what happens next.

Has anybody else seen any movement on Apex accounts? Has somebody rattled their cage or has a new broom been purchased tat somebody has decided to use to sweep out old accounts?

[julian]

Re: Hitachi Finance Interest Free Loan

A couple more intimidating letter have come through this last month, which I think should be ignored.
#
1 - Disappointed you have not responded. We want to help, but if you don't respond in 10 days we may send to legal dept.
2 - Almost immediately. Disappointed you have not responded. We have looked at your finances and know you can pay. If you don't propose a repayment on our generous terms which we help you rebuild your life, we will demand full payment. Love and kisses Debbie.xxxxx

[Pixie]

Re: Hitachi Finance Interest Free Loan

I've only just seen this julian. It does seem strange that the contract said it was covered by CCA.

Is your friend still paying this or have they stopped?

[julian]

Re: Hitachi Finance Interest Free Loan

Hi Pixie
The agreement said it was NOT covered by CCA and could not be cancelled.

They stopped paying about 4 years ago, by which time they had paid at least the cost of the goods. Of course, as the interest was calculated up front, there is still a lot to pay. The agreement stipulated early repayment 'discounts' along the lines of 50p if you pay it 1/4 way through 25p if halfway through or 2p if 3/4 through: no incentive whatsoever.

If strikes me that as they sold it on, the account was paid early, so Apex's demand for the outstanding monies would be inflated above what would have been due. The last payment would not be due for well over a year.

[Never-In-Doubt]

Re: Hitachi Finance Interest Free Loan

Is this in relation to this -> http://forums.all-about-debt.co.uk/s...s-the-Creditor

[julian]

Re: Hitachi Finance Interest Free Loan

Thanks Niddy, it is.

The Trading Standards paper is interesting, but I think that this issue is process failure. The salesperson was unaware of the process and although splashed across the shop windows, there were no leaflets or info except word of mouth.

Should there be any realisation of threats, there may be a few holes in their arguments ;-0. I think they are just hoping for a cave in.

[julian]

Re: Hitachi Finance Interest Free Loan

Well, well, well. No flash of lightening or visits from bailiffs. The threats of litigation and slow death have not yet been developed. Instead a letter saying the debt has been assigned to another company, which is in fact under the same management and manager.

Seems they have some doubt on the veracity of their claim, let's hope it stays that way.

[Never-In-Doubt]

Re: Hitachi Finance Interest Free Loan

Well, well, well. No flash of lightening or visits from bailiffs. The threats of litigation and slow death have not yet been developed. Instead a letter saying the debt has been assigned to another company, which is in fact under the same management and manager.

Seems they have some doubt on the veracity of their claim, let's hope it stays that way.

This one here --> http://forums.all-about-debt.co.uk/s...060#post523060



They have issues me thinks