Santander car loan charges question.

[technique1966]

To cut a long story short my wife bought a new car late 2007, I think originally the finance changed from GE Money to Santander during the period, as she's been made redundant I'm sorting the payments, the balance is negligible and will be cleared shortly as such I asked for a statement of account.

 

Over the period of the loan there are 3 instances of charges where direct debits were refused (normally for a period of days)

the charges are listed as 'charge' £30 'charge' £15. So in total £135, before I settle the account are these figures a valid charge for a refused direct debit, I may be well out of date on this but I thought that they'd been limited to around £12?

 

Thanks in advance.

[BRIGADIER2JCS]

They will have charge for the bounced DD and probably for reapplying for the payment, try settling less the penalty charges.

[technique1966]

Is my argument that the charges are a punitive charge that doesn't reflect the cost of administrating the refused direct debit payments? Or is it a case of 'here's most of your money, we'll call it square'?

[ims21]

Is my argument that the charges are a punitive charge that doesn't reflect the cost of administrating the refused direct debit payments? Or is it a case of 'here's most of your money, we'll call it square'?

 

Yes correct. In view of the fact that that they will not represent a true cost to them (and if you ask for it they will not provide a breakdown) they are a penalty.

 

You should claim the charges back and any associated interest applied to the account as a result of them.