Interest free credit? Strange situation!

[PatsyTheCat]

Hi,

 

Just over 6 months ago I purchased some goods on a 6 months interest free credit deal, signed a contract and took the goods. It was the usual scheme of being "completely interest free" unless you forget to pay before the interest free period ends in which case you get a huge back dated interest bill added to the total and the whole lot gets paid off monthly. My plan was to pay before this happened.

 

Well around 3 months in I phoned the finance company to make a part payment. I was told that because I hadn't paid the £15 admin fee at the start of the agreement then no money was owing to them as there was no agreement in place. They said that if I wanted then I could pay the admin fee and then make a payment. I asked when the interest free period would start if I was to pay the admin fee today. They said that it would start as soon as the admin fee was paid. So I asked what would happen if I waited a month and then paid the fee and they replied that the 6 months would run from when the fee was paid. So I began to think to myself why would I ever want to pay this fee? Why not never pay it and just get never ending free credit? So I asked what the incentive was to pay the fee and they didn't seem to have an answer.

 

I asked what would happen if I never paid the admin fee and they said that I wouldn't be able to take the goods away from the store. I explained that I'd had the goods for about 3 months but they seemed to find this mildly amusing and said that in which case I would probably need to pay the store.

 

At that point I said goodbye and decided to contemplate for a while.

 

I decided to send them an email asking if I owed them any money and they sent this reply:

 

"If you wish to proceed with your application you need to make a payment of £15 for the service fee to us. If don't wish to proceed can you please sent us an email confirming cancellation. If you cancel no payments are due to us."

 

It says on the paperwork that I signed that a reminder would be sent before the interest free period ended to remind me to pay before the interest kicks in. So I decided I was going to pay the admin fee a month or so before the original interest free period ended and then see what paper work I got through the post explaining when my final payment needed to be made in order to avoid the interest. Really what I was trying to do here was get another 6 months interest free (A bit naughty I know).

 

Problem is I stupidly forgot to pay the admin fee and the interest free period is now up. So in short, I haven't paid them a penny, they say I don't owe them anything and they haven't yet contacted me about making any monthly payments.

 

What should I do in this scenario? I'm a bit reluctant to contact them now in case they try and charge me the interest. Should I just keep quiet? If I keep quiet what are the chances of them approaching me for payment at some point? Also, if they do approach me for payment, do they have a legitimate claim for the interest, considering that no reminder was sent to me and the email states that I don't owe them anything unless I pay them £15? If a finance company states that they will send a reminder and they don't, does this mean they can't claim the interest? What would you do?

 

Thanks.

[foolishgirl]

You state you signed a contract so there must be a copy somewhere unless they have lost it. So I would start by trying to prove they have that copy. If they can't prove you signed an agreement they can't prove you owe them interest or even the capital sum.

 

You send for a copy under S77/78 of the CCA1974 including £1.00 PO. Do not sign the letter, print or use dig. signature so no copying & pasting can be done. The template is here:

http://www.consumerforums.com/resources/templates-library/86-debt-collectors/581-cca-request-letter

 

They have 12+2 days to produce it although be aware that they don't have to send you a photocopy i.e. one with your signature on it, although as it is only a short time ago since you signed this contract, if they have a copy it would make sense to send you a photocopy. If they don't, I would question that the original exists.

[haggis1984]

Not sure if Id go for an actual CCA request yet. It might backfire and shove them into getting their hosue in order.

 

Id be inclined to write a polite letter (maybe butter them up with a compliment about how good their in-store customer service was or something!), asking them to confirm in writing that until the £15 admin fee is paid no money is owed, and at present no money is owed

[Huff&Puff]

I would just leave things be. If and when they do decide to start chasing for some money, I think you would have a strong case for only having to pay the interest free sum, as you have tried to pay and they refused.

[royboy68]

Patsy, I take from your post that you are an honest person and are just playing this mostly out if devilment. If you have the means to pay outright for the item then why not contact them and offer the payment fee. They might grant you a further 6 months interest free, if not then just pay outright for the product. I know that the shop have been idiotic with its procedures but any loss by the shop will only lead to their loss of revenue being ultimately passed onto future customers.