Huge Interest Payments VERY catalogue!! HELP

[Flombay]

Hiya all I hope someone can offer me some advise,

I have a 'Very' catalogue that ive had for years, Ive always paid and was aware of their interest rates being high however they have changed their buy now pay later to something called Take 3 and the buy now pay later option leaves you payment free for a year and after that time the interest & goods value is added to your account, last year I thought ok fine no probs TILL NOW

 

In 3 months ive gone from having a manageable balance of £600+ with interest of £16+ to having a ballance of £2000+ and interest ranging between £200+ with apr last month being 39.7% to this month interest was £145, apr on this statement 19.9%

I asked on the phone WHY the interest changed so much and was told it was variable!!??

 

My minimum payments on this account are £88 & should my interest remain at £145 per month im going to have my ballance go up every month by £56 unless I can pay £223 just to cover interest & minimum payment, I cant possibly afford that

 

My husband is in employment but in a Debt payment plan & Im not working as we have 2 small children

To make matters worse Ive another £314 & £279 'maturing' in october & November, To opt out of god only knows how much interest on top of what I already have added to my account each month ive to pay £314 before the 16th of this month,

 

I cant do this I dont have the money & in addition to that would have to also pay £223, this months interest & minimum payment

I hope this is making sense, My interest could double in the next few months because of my buy now pay laters maturing so I would effectively owe them money forever and that amount would increase as would my minimum payment??

 

What am I to do??

Ive never had credit where the minimum payment does not include your interest, even if my interest remained at £145 for a year (which it wont) paying the minimum payment my balance would increase by around £800....When I rang to confirm the interest I saw on my statement I said to the woman 'so if I only pay the minimum payment my balance will go up every month and she just said well yes'

 

I hope this makes sense, Im at a loss as to what to do, am feeling very stupid at not reading the 'Terms & Conditions' but having used this catalogue for many many years without bother I just didnt think it mattered, Stupidly thought they were just Jazzing up their buy now pay later, More fool me,

Im in Scotland by the way and would really appreciate any advise

Thanks In advance

[lady-in-red]

so many people getting caught with this interest thing i have no idea how it works, but if it was me in this predicament id write to very tell them im giving them£1.00 a month and if they dont like it then take me to court, they wont like it but at the end of the day they cant get blood out of a stone, these people are just thieves, i wouldnt pay them anymore than £1.00 tell them this but say you will pay more when things change for you ie your husbands wages , what can they do to you?? Nothing at all yes you will have bad credit so what, who wants credit, i only have what i can afford thats it

[cerberusalert]

How old is this a/c & how did you apply for it?

[Flombay]

Hiya its that old I cant remember? Its been through various name changes and so on, I couldnt remember if I tried how I applied for it?! Perhaps via phone or one of those little cards you used to get and send off? It was originally called index extra and that was back in 1995?

[cerberusalert]

First send them a CCA request to see if they are entitled to collect this debt & if it's enforcable. If they fail to provide it within 12 working days from receipt, or the CCA is unenforcable you can legally withold any payment until they do. Send it recorded delivery enclosing a £1 postal order. When you get a reply, scan it & remove any identifying details and post it back here where we can have a look at it. We'll advise you from there;

 

Dear Sir/Madam

 

Re:- Account No: XXXXXXXX/Your Reference Number: XXXXXXX

 

This letter is a formal request pursuant to s.77/78 of the Consumer Credit Act 1974. I require you to provide me with a true copy of the credit agreement relating to the above account, together with any other documentation the Act requires you to provide.

 

I expect you to comply fully and properly with this request, within the statutory time limit. You are reminded that should you fail to comply with my request, the provisions of s.77 will apply.

 

If it is your view that you are not the creditor, s.175 of the CCA 1974 applies in the case of a simple assignment, and places a duty upon you to pass this request to the creditor. In the case of an absolute assignment, you are a creditor as defined by s.189. If you contend that you purchased the rights but not the duties of any agreement, you are reminded that s.189 of the Act is clear that an assignment is of both rights and duties.

 

Your attention is drawn to ss.5(2), 3(b),6 and 7 of the Consumer Protection from Unfair Trading Regulations 2008 (CPUTR). I enclose a postal order in the sum of £1.00, which is the statutory fee. Note that these funds are not to be used for any other purpose.

 

If you intend to send a reconstituted copy of the CCA you must declare the reason why it has been reconstituted and if the original exists and in what form (microfiche) etc.

 

If you are unable to comply fully and properly with this request, you should confirm this in writing at the earliest opportunity, and certainly within the statutory time limit for compliance, and return the fee.

 

.

 

 

 

I look forward to hearing from you.

 

Yours faithfully **Edit to suit**

 

(Print do not sign signature)

[Flombay]

Ok Thank you, but quick question, should I make this months payment when its due or speak to them about our situation or just mail this letter and await the reply?

[cerberusalert]

Ok Thank you, but quick question, should I make this months payment

I'm afraid that's a decision only you can make, personally I wouldn't.

 

Depending on what you get back will determine the route to take next in the unlikely event that they produce an enforceable agreement as it's part of Littlewoods.

[2Grumpy]

having a ballance of £2000+ and interest ranging between £200+ with apr last month being 39.7% to this month interest was £145, apr on this statement 19.9%

 

I'm having difficulty reconciling the balance, APR & monthly interest charge. Either I'm getting more senile than I thought or something isn't quite right.

 

Can you be a bit more precise with the balance and confirm that the statements say APR next to the interest rates.

 

Are these the monthly interest charges on the outstanding balance or do they include some from the payment-free period?

 

Unless I'm missing something (easily happens) then 19.9%APR is approx 1.5% per month or £45 on £3000

 

According to my calculator (provided that I'm using it properly) £145 interest on £2500 (you only say 2000+) is 97% pa & 200 interest on 2500 is around 150% pa

 

Is there something on the net that you can point to about how they calculate their interest / charges?

[2Grumpy]

I have looked at the T&C for the BNPL very account.

 

It is possible that some of the interest shown is for the amounts just added to your balance from the BNPL scheme - that would be a whole years worth of interest on those amounts plus a months interest on the outstanding balance. If you had either £314 & £279 available in October / November then phoning them & paying off the appropriate BNPL item would be relatively good value. Otherwise your balance will go up bu those amounts + interest at the end of Oct / Nov. Not good news but the interest will just be on the outstanding balance after that

[Flombay]

19.9%APR is approx 1.5% per month or £45 on £3000

Thank you so much 2Grumpy!!! Your a genius, I had thought the whole thing was completely unscrupulous when I got off the phone the other day, How could they make my ballance go up and up and it be legal, thats why I got on here, Turns out the woman I spoke to obviously does not know her job very well or the company policy,

My not understand the terms and conditions 'as she told me' was not due to my ignorance after all,

Turns out your right After a half hour on the phone to a girl who was so helpfull & patient she we worked out the following,

The interest is for the years BNPL & is slapped on the month goods mature along with their ballance, which as a whole is added to your ballance,the interest from then on is then calculated at 19.9% APR (variable)

My ballance of £2052 will have a minimum monthly payment of £119 & interest of £31, should I pay more than the minimum payment I will pay less interest.....

I am so relieved as did not want to go down the CCA letter, unless I really have to, its still going to be tight paying out that bit more but its nothing to what I had been led to believe by their company!!!

Thank you all for your help, hope not to be back but you never know,

Kind Regards

[Surfer01]

I would still request a CCA from them.

[laalinz]

I have just received my SAR back from VERY. No credit agreement at all and loads of chargers. Just wadding through it all. Might be worth sending them a SAR request?