Tweet
Hello Everyone !!!
I was wondering if any of you have received a Letter from GE Money regarding a Secured Loan??
I have been paying £393 per month by Direct Debit and now i receive this letter telling me that because GE Money have made a mistake as a gesture of goodwill have reduced my Loan by £2035.47,but now i have to pay £475 per month??????????
Below is the exact wording in the letter :
Mortgage Owner : GE Money Home Finance Limited
Dear Mr & Mrs
Why we are writing to you
We have recently concluded a review of your account and have found that your monthly instalments have not always changed when the interest rate on your account changed.
Since opening your account, interest rates have fluctuated. The interest rate applied to your account is currently 13.478%,and is linked to GE Money’s base lending rate.
As your monthly instalment has not always changed to reflect the fluctuation in GE Money’s base lending rate,you have not been paying enough to make sure your loan is repaid within your agreed term.
What we have done to help you repay your loan within theagreed term
We have calculated that the total amount underpaid onyour account as of 8th May 2012 as a result of this matter is£2,035.47-and we have reduced your account balance by this amount as a gestureof goodwill.You will see this transaction reflected on your next annualstatement.
Any fees and charges that may have been applied to youraccount during the term are not affected by this issue.
Your notice of payment change
We have adjusted your monthly instalment to reflect thecurrent rate on your account.
Your monthly instalment will be £475 with effect from1st June 2012.
Please note your monthly instalment will change inaccordance with future fluctuations to GEMoney’s base lending rate.At thatpoint in time you will receive a Notice of Payment Change advising you of yournew monthly instalment and the effective date.
What you need to do now
If you are currently paying by Direct Debit you do notneed to take any further action,we will collect your new payment automatically
If you pay by any other method you will need to take thenecessary action to increase your monthly payment to £475 as quoted above.
We are sorry this has occurred and have now changed ourprocesses to ensure this does not happen again.
IS THIS LEGAL?
Advice needed please
Thank you in advance
I was wondering if any of you have received a Letter from GE Money regarding a Secured Loan??
I have been paying £393 per month by Direct Debit and now i receive this letter telling me that because GE Money have made a mistake as a gesture of goodwill have reduced my Loan by £2035.47,but now i have to pay £475 per month??????????
Below is the exact wording in the letter :
Mortgage Owner : GE Money Home Finance Limited
Dear Mr & Mrs
Why we are writing to you
We have recently concluded a review of your account and have found that your monthly instalments have not always changed when the interest rate on your account changed.
Since opening your account, interest rates have fluctuated. The interest rate applied to your account is currently 13.478%,and is linked to GE Money’s base lending rate.
As your monthly instalment has not always changed to reflect the fluctuation in GE Money’s base lending rate,you have not been paying enough to make sure your loan is repaid within your agreed term.
What we have done to help you repay your loan within theagreed term
We have calculated that the total amount underpaid onyour account as of 8th May 2012 as a result of this matter is£2,035.47-and we have reduced your account balance by this amount as a gestureof goodwill.You will see this transaction reflected on your next annualstatement.
Any fees and charges that may have been applied to youraccount during the term are not affected by this issue.
Your notice of payment change
We have adjusted your monthly instalment to reflect thecurrent rate on your account.
Your monthly instalment will be £475 with effect from1st June 2012.
Please note your monthly instalment will change inaccordance with future fluctuations to GEMoney’s base lending rate.At thatpoint in time you will receive a Notice of Payment Change advising you of yournew monthly instalment and the effective date.
What you need to do now
If you are currently paying by Direct Debit you do notneed to take any further action,we will collect your new payment automatically
If you pay by any other method you will need to take thenecessary action to increase your monthly payment to £475 as quoted above.
We are sorry this has occurred and have now changed ourprocesses to ensure this does not happen again.
IS THIS LEGAL?
Advice needed please
Thank you in advance
Comment