lending stream £10 letter charge

[what_todo]

hello,

 

i have a payday loan with lending stream, but for whatever reason the paymint did not come out of my account.

 

today i have phone them and i got told a letter has been posted and a charge of £10 has been apply to my account.

 

can i be pointed to a letter to send them as a £10 for a letter can not be justified or, what the same thing to say?

[Bobbins37]

To be honest I dont think £10 to notify a default is that bad. If there are other associated charges it may be a different story.

[mightyroyals]

To be honest I dont think £10 to notify a default is that bad. If there are other associated charges it may be a different story.

 

£10 for a letter is alot. I would like to know how you can say that £10 for a letter is not much.

 

£10 pound for a generic letter that takes two minutes to print and put a stamp on is alot and any court would agree as they could not justify to a court the breakdown of the cost of that letter.

 

I would send them a request for a breakdown of the balance then you can see exactly what charges have been added and for what reason.

 

I'm sure that someone will be along shortly with a bit more knowledge

[Bobbins37]

£10 for a letter is alot. I would like to know how you can say that £10 for a letter is not much.

 

£10 pound for a generic letter that takes two minutes to print and put a stamp on is alot and any court would agree as they could not justify to a court the breakdown of the cost of that letter.

 

I would send them a request for a breakdown of the balance then you can see exactly what charges have been added and for what reason.

 

I'm sure that someone will be along shortly with a bit more knowledge

 

06/04/06 Late payment charges to be capped at £12 following Office of Fair Trading investigation

The Office of Fair Trading has ruled that card companies should only be able to charge a maximum fee of £12 for late payment of credit card bills.

 

The OFT believes the current charges for late payment, which are typically between £20 and £25, are excessive and unfair. In future customers should only be charged for the actual administration cost of processing late payments, such as postage and stationery.

 

It also ruled that penalty charges are illegal, as they breach the 1999 Unfair Terms in Consumer Contracts Regulations. A statement from the OFT said "Credit card default charges have generally been set at a significantly higher level than is legally fair ".

 

The OFT said its ruling on charges would collectively save consumers a minimum of £300m.

 

The credit card industry has until 31st May to respond to the statement, after which the OFT says it will begin legal proceedings to enforce the £12 cap.

 

If the OFT believes that £12 is "fair" for credit cards then I dont think they will agree that £10 is excessive.

[what_todo]

the letter has now came. its £12 not £10

[MARTIN3030]

Ok write to them and ask them to give you a breakdown of the costs that will show the £12 is a genuine pre estimate of their actual costs.

Looks like they are relying on the OFT agreement with CC issuers that £12 was considered a reasonable default fee-however in that investigation the OFT did say that only a Court could decide the true fairness.

 

Your arguement then is that you consider this to be a penalty under common law,unless they can prove to you otherwise.

 

Has there been other charges in the past ?

If not you could ask them to consider waiving the charge as a goodwill gesture,on the basis that you have previously ran your account within agreed terms.

[MARTIN3030]

from their terms and conditions.

 

 

1.2 You agree to ensure that sufficient funds are available in the Account on each Repayment Date in order to meet your obligation to pay the amounts you owe us on each Repayment Date. You must pay us the amounts due on each Repayment Date.

1.3 You hereby authorise us to debit the amounts payable by you on each Repayment Date and any other fees that you may incur under this Agreement to the debit card nominated by you in your loan application ("Your Debit Card"). Unless otherwise provided in this Agreement, all payments will be applied first to default fees payable under conditions of default, interest charges due under this Agreement and then to the Loan Amount.

1.4 If a debit is returned unpaid or dishonoured for any reason when it is first presented by us for payment, we may re-present the debit for payment on Your Debit Card until we receive the Total Amount Payable under this Agreement. Unless we agree otherwise, if you do not pay the Total Amount Payable in accordance with this Agreement, you may incur default charges and other charges as specified in the loan particulars of this Agreement. You agree that we may also collect any such charges by way of a debit to Your Debit Card. The authority given by you to debit Your Debit Card for the purposes of this Agreement is to remain in full force and effect until your obligations to us under this Agreement are fully satisfied.

1.5 In addition to our rights under condition 1.4, if a debit to Your Debit Card is returned unpaid or dishonoured for any reason, you authorise us to debit, without any further notice to you, any such payments in accordance with the Direct Debit Authority given by you in the course of your loan application. The authority given by you under the Direct Debit Authority for the purposes of this Agreement is to remain in full force and effect until your obligations to us under this Agreement are fully satisfied.

 

 

 

 

Does it actually give default fees on your agreement ?

[MARTIN3030]

Address

 

 

date Account number..............

 

 

 

Dear Sir/Madam (or name on letter)

 

Thank you for your letter of ........... advising me that £12 will be added to my account in respect of a failed payment.

 

Given that I have previously conducted my business with you meeting the agreed terms,I would ask that this charge be waived as a gesture of goodwill.

 

Alternatively,please supply me with a breakdown of your costs which will demonstrate that the £12 is a genuine pre estimate of your actual costs,and cannot be viewed as a penalty under common law.

 

I recognise and am aware that the Office of Fair Trading in 2006 agreed that a £12.00 for Credit Card default fees was accepted and has been adopted by the finance industry as a yardstick,however the Office of Fair Trading made the agreement after looking at information supplied to them by 6 Credit Card Issuers -which is not representitive of the whole finance industry,and even so,stated that only a Court could rule on fairness of any fees.

 

Further,please forward me a copy of your complaints procedure.

 

Yours Faithfully/Sincerely

 

 

What todo

Edited April 5, 2010 by MARTIN3030
more info

[gordon'salive!?]

I think that is cheap - in terms of what payday companies charge - the average is around £12 I believe for a letter.