Hitachi Capital Finance charge reclaim - **WON**

[landy_alert]

Hi everyone:)

 

In 2005 we bought a hot tub on finance through Hitachi Capital. The cost of the hot tub was £10,298.00 and we paid £2000 deposit. There was an additional 'handling fee' of £622.35, bringing the total borrowed to £8920.35. This was spread over 3 years at 9.5% which cost us £284.12 per month.

 

We had a few problems with direct debit payments being returned as Mr L changed jobs and his promised bonuses didn't materialise, but in 2006 we took out a second charge on our house and repaid the balance in full. By this time the account had been passed to Credit Solutions who quoted a settlement figure of £8651.60, which we duly paid.

 

Prior to this we had made payments totalling just over £1800.

 

We have the original agreement and according to this they charge £32.00 for a returned direct debit, £25.00 for a letter and £50.00 for a default notice. As Mr L went through a period of severe depression during which time he shredded all letters dealing with our debts I don't know if a DN was ever received, but I'm assuming it was as it ended up with a DCA. There were also obviously charges incurred for the bounced d/ds.

 

I am about to do a Subject Access Request to Hitachi and would like to know -

 

1. The address I should be sending this to? I have the following address for them but am not sure if this is correct -

 

Business Support Unit

Hitachi Capital Consumer Finance

2 Apex View

Leeds

West Yorkshire

LS11 9BH

 

2. What charges I should be able to reclaim?

 

Unfortunately we were so naive back then that we didn't query the settlement figure, but just paid up to get the matter resolved. I can't believe that in total the hot tub cost us about £12500.00:(

 

Looking at the paperwork there doesn't appear to be any PPI, although I was amazed to see we had been charged the £622.35 'handling fee' and don't understand what this was for:confused:

 

There also appears to be an error in as much as where it says 'Total Charge for Credit (Interest)' They have entered the figure £8920.35, which is actually the amount borrowed. By my calculations the total charge for credit was £10,228,32. There is no mention of this on the CCA.

 

My scanner is playing up so I cannot add a scan of the agreement, but its enforceabilty or otherwise is irrelevant now as this has been repaid in full.

 

Any help with this would be hugely appreciated please!

 

Many thanks,

 

Landy x

 

BTW We do still have the HT and for those able to help with this you're welcome to pop round for a dip, LOL!

Edited February 5, 2010 by landy_alert
Added something!

[Pinky69]

Companies pass debts to DCAs without any paperwork whatsoever so it is not to be assumed that they ever issued a DN. In addition, you have paid interest on a fee which was added to the loan. They are not allowed to add fees to loans and you should ask for the interest you paid on that money back. See Wilson and others V The Secretary of State for Trade and Industry. Mrs Wilson's loan was written off because a fee was added to the loan. I would ask for all the interest back as the agreement wasn't properly executed.

[landy_alert]

Companies pass debts to DCAs without any paperwork whatsoever so it is not to be assumed that they ever issued a DN. In addition, you have paid interest on a fee which was added to the loan. They are not allowed to add fees to loans and you should ask for the interest you paid on that money back. See Wilson and others V The Secretary of State for Trade and Industry. Mrs Wilson's loan was written off because a fee was added to the loan. I would ask for all the interest back as the agreement wasn't properly executed.

 

Thanks Pinky!

 

Would that be a case of putting the fee into an interest calculator and working out what the interest would be at the rate charged (9.5%) from the date charged until the settlement date, then take this figure and add 8% simple interest from date of settlement until today?..........and reclaiming the interest only, not the fee as well of course!

 

Landy x

Edited February 5, 2010 by landy_alert
Corrected something!

[landy_alert]

Thanks Pinky!

 

Would that be a case of putting the fee into an interest calculator and working out what the interest would be at the rate charged (9.5%) from the date charged until the settlement date, then take this figure and add 8% simple interest from date of settlement until today?..........and reclaiming the interest only, not the fee as well of course!

 

Landy x

 

Can anyone confirm this is correct please and also that the address for Hitachi as per my first post is also the right one to use as I'm hoping to get the SAR sent off asap............

 

Many thanks,

 

Landy x

[Pinky69]

Your calculation is right. Sorry I cannot help you with the address.

[landy_alert]

That's ok Pinky - thanks for your help in pointing me in the right direction with the fees etc!

 

I'm sure I'll be able to confirm the address by searching the web.

 

Landy x

[gh2008]

Unless you've already sorted it search on the Information Commissioners Office website for the Data Controller's address for Hitachi Capital.

 

If you post up the original figures and the settlement date and payments made I'll check them tomorrow for you.

 

gh

[landy_alert]

Thanks gh - most appreciated:)

 

The figures are as follows -

 

Spa package - £10,298.00

Handling fee - £622.35

Total price - £10,920.35

 

Deposit paid - £2000.00

Balance - £8920.35

 

Apr 9.5%

 

Term 36 months

 

Payments made -

 

18/8/05 £284.12

19/9/05 £284.12

18/10/05 £284.12

30/11/05 £316.12

30/12/05 £316.12

30/1/06 £316.12

4/7/06 £8651.60

 

The three slightly higher payments of £316.12 I believe included a £32 returned direct debit charge for the months that payments were returned.

 

Please let me know if you need anything else!

 

Thanks again,

 

Landy x

[landy_alert]

Can anyone offer any advice on this please?

 

Many thanks,

 

Landy x

[gh2008]

the initial loan is ok - trying to find the score regarding early repayment when in default.

[landy_alert]

the initial loan is ok - trying to find the score regarding early repayment when in default.

 

Most appreciated gh - thank you:D

[landy_alert]

Just a shameless bump for some further assistance with this please:wink:

[landy_alert]

Hi everyone:)

 

Well, this one has been on the back-burner for a while as I've been busy frying other fish............but as some of those are finally reaching their conclusion, today I've at last prepped my SAR and this will be going off recorded tomorrow with the £10 postal order.

 

Will report back with their response

 

Landy x

[landy_alert]

Hi everyone:)

 

Just a further update on this -

 

Hitachi were very quick to respond and I have now received the SAR info!

 

Request for refund of charges plus interest will be winging it's merry way to them on Monday

 

Landy x

[landy_alert]

Hi everyone:)

 

Prelim now sent off for this one - it's not a large claim and there was no PPI to reclaim (:() but nonetheless every little helps!

 

Will update once their reply has been received.

 

Landy x

[landy_alert]

Hi everyone:)

 

Well they didn't waste much time............only a week after my prelim, Hitachi have sent their final response saying they reject the request for a refund of charges plus interest completely. Regarding the interest on the handling fee, they specifically state -

 

'I have inspected our copy of your agreement and in my view the handling fee is clearly included in the total cash price. There is nothing to indicate this was paid in advance. I believe the average consumer would expect interest to be payable on the total cash sum; less any advance payment/deposit.'

 

So I guess this is another one for the FOS - they mention both the FOS and FLA in their complaints procedure but we all know how pointless the FLA are I presume as both are mentioned, they will be covered by the FOS - this agreement dates from mid 2005, so hopefully they are!

 

Landy x

[landy_alert]

Hi everyone,

 

Quick update time -

 

I wrote a further letter to Hitachi after their last letter in the hope they would relent rather than me take it to the FOS, but they ignored my recorded delivery correspondence. As my sig shows I then filed a complaint with the FOS at the end of August. So far only the standard acknowledgment has been received from them.

 

Today a letter arrived from Hitachi offering a refund of all charges as well as the interest that was applied to the 'handling fee' but no interest on any of the charges or the interest on the handling fee interest (if you see what I mean!). Their cheque (which was enclosed) is approx £300 short of what would be refunded were the FOS to uphold and require them to pay back 8% statutory interest on top of all reclaimed amounts.

 

I'm thinking I should write back accepting the cheque as part settlement - but not cash it obviously - and inform the FOS of this development.

 

However, bearing in mind past experience with the FOS, I fear that their investigation will continue to drag on for the usual months/years and at the end of the day we may still not get an increased offer, so am almost inclined to accept what they have refunded.............

 

Another day, another decision

 

Landy x

[landy_alert]

Hi everyone,

 

Just a rather belated update on this one - after receiving the cheque from Hitachi I let them know was accepting it in part settlement only and let the FOS know. However after a while the FOS did - as I suspected they would- come back saying they believed that Hitachi had fulfilled their obligations by refunding what they had and indeed according to FOS guidelines Hitachi had gone over and above the call of duty by refunding the interest on the handling fee. As it was only a matter of a few extra pounds, for the sake of more aggro I decided to accept this and let the matter rest there.

 

Therefore this claim is now complete and having received all charges back as well as the interest on the handling fee this thread title can now be changed to ***WON*** please Site Team.

 

Thanks to pinky and gh for their advice earlier on in the thread,

 

Landy x

[gh2008]

Congrats LA well done