Charges on CCA agrrement - quick advice needed

[jj69]

Morning all..
Been some time since I last posted I hope everyone is ok ?
I have a quick question regarding charges on a car agreement with Advantage finance.
I have the CCA and on it is the following :

Interest on credit £1430.76 -F
Other charges - acceptance fee £275 - G
Other charges - option fee (inc VAT) £150 - H
Total charge for credit F+G+H = £1855.76

Now they have lumped this altogether with the actual amount of credit and classed them as charges so am I right in thinking they are not allowed to charge credit on the fees G&H according to FSA guidelines ?


I am currently in dispute with AF and need to find out what these charges relate to so a letter is going out in the post after all I was not told if these were optional or not !
Any assistance most welcome
Regards
JJ

[Never-In-Doubt]

Re: Charges on CCA agrrement - quick advice needed

Send a pm to Jen_BR & Diddlydee - both understand these things and might be best to ask....

good luck

[jj69]

Re: Charges on CCA agrrement - quick advice needed

Will do , thanks for that ! Just an update but got a call from them today as they have clumped a number of charges on account for apparently calling texting sending letters etc , despite myself having an email address which they regularly send email to therefore I am contactable when they claim I am not , despite the idiots actually sending me email , one of the charges is for £100 for a status look up to confirm who and where I am , when it was clear I had not moved address in the last 17 years and also they contacted me by phone, text and email. They are now willing to refund that £100 ! Looks like they realise there may be some action coming their way !

[Never-In-Doubt]

Re: Charges on CCA agrrement - quick advice needed

Yea they can't go adding things things that without reason, like you say if they'd written to the account address they'd have got you so the fact they wasted £100 on the unnecessary trace fee that costs them around £18 is neither here nor there cos you'll not be paying it, will you

[Never-In-Doubt]

Re: Charges on CCA agrrement - quick advice needed

ps try and stop talking on the phone to them - learn to hang up!!

[jj69]

Re: Charges on CCA agrrement - quick advice needed

Certainly not paying their excessive charges , just calculated and it tally's up to nearly £600 since the start of the year for txt's , letters and phone calls allegedly. Well sent a letter demanding all charges are refunded , strangely though got an email to say they would refund another £100 if I paid without any issues for the next three months ! Sounds to me they have realised their charges are pretty excessive if I show a listing to the Financial Ombudsman ( or whatever they are called now ) and no more calls , gave them benefit of the doubt but they have abused that say all in writing now !

[diddlydee]

Re: Charges on CCA agrrement - quick advice needed

Scan in and post your credit agreement and I'll take a gander at it for you (remove all personal info, please).

[jj69]

Re: Charges on CCA agrrement - quick advice needed

Yep will do this over the weekend , thanks for the assistance !

[jj69]

Re: Charges on CCA agrrement - quick advice needed

Okay find copies of CCA part 1 and 2 CCA1.PDFCCA2.PDF

[jj69]

Re: Charges on CCA agrrement - quick advice needed

Just noticed on those two pages it states 1 and 2 of 4 , the other 2 pages are missing !!!!

[jj69]

Re: Charges on CCA agrrement - quick advice needed

Going through the list today and it is really ridiculous , in August two charges for sending the same letter twice on that day , multiple texts on various days with charges , £7.50 miscellaneous collections charge ! Im going to be busy totting these up ! LOL

[diddlydee]

Re: Charges on CCA agrrement - quick advice needed

OK JJ. To answer your initial question, interest has been charged at a flat rate of 18.5% on the original loan amount of £2900.00 per annum and added to the loan at the start. This works out at £536.50 per year or £44.71 per month. 32 months worth of interest would come to £1430.72, so interest has not been charged on the acceptance fee or the option fee.

The option fee of £150 was included in your first repayment, not added to the total owed, however, the £275 acceptance fee was divided by the 32 months, but interest was not charged on it.

What is outrageous is that they charge you interest on the FULL amount of the loan for the full period, ie. the loan reduces each month/year, but the interest is always based on the initial loan, hence the ridiculous APR of 46.40%

I can't add any more, but others can help with the legalities of reclaiming charges etc.

[Never-In-Doubt]

Re: Charges on CCA agrrement - quick advice needed

^^^ thanks Diddly (see I told you she was good) - ok, now you can PM Di30 with a link here regards reclaiming the charges etc as applicable.... If there is nothing to reclaim; can you elaborate from post 1 exactly what's wrong/what you're doing?

diddly has picked up on a good point about interest being charged against the whole loan and not reducing although I'm not so clued up on the legalities of this so I'll ask mods to input if you can clarify what it is you're trying to achieve.

[SXGuy]

Re: Charges on CCA agrrement - quick advice needed

Im not an expert, far from it. Just picking up on something. Interest is added based on the full loan amount, and spread across the loan term. Isnt this normal?

Ive had a few HP agreements in the past, where they have added compound interest. Interest charged has been based on the difference of the payments previously made, and whats outstanding. So surely this method of interest is more fairer, since your not paying more interest month on month only to find a balloon payment at the end on top of it all?

[jj69]

Re: Charges on CCA agrrement - quick advice needed

^^^ thanks Diddly (see I told you she was good) - ok, now you can PM Di30 with a link here regards reclaiming the charges etc as applicable.... If there is nothing to reclaim; can you elaborate from post 1 exactly what's wrong/what you're doing?

diddly has picked up on a good point about interest being charged against the whole loan and not reducing although I'm not so clued up on the legalities of this so I'll ask mods to input if you can clarify what it is you're trying to achieve.

Many thanks for the info so far ! So overall the loan + interest charged looks right as does the option and acceptance fees ! That's fair enough what I am not happy with is the excessive charges , so I intend to claim these back , if they don't play ball I will raise a complaint with FOS , at the very least they can see I will not be rolled over !