arrangement fee of secured loan

[bonsai8]

can anyone advise me as to how to challenge an arangement fee with a secured loan provider? I am not sure what consumer legislation it comes under as it was taken out in May 2006 for over £25k and I dont think the 1974 Act applies. Problem is I wasnt aware that they charged the £960 fee and attached it to the total credit lent so i am now faced with paying it over 240 months with interest.

[LuggerBugs]

Re: arrangement fee of secured loan

Does it specifically mention the £960 on your agreement? And would the amount borrowed have been under £25K without it?

Anything else? PPI, for instance?

[bonsai8]

Re: arrangement fee of secured loan

Thanks for responding. It does mention the £960 on my agreement but like a plonka i hadn't realised they were adding it to my total loan which was for £50k. I have been successful in challending them on the PPi and they have paid that back plus the interest i paid.

[LuggerBugs]

Re: arrangement fee of secured loan

As far as I am aware, they are not supposed to charge interest on that.

I have a feeling this is something being clarified somewhere tho, so I'll try to find out more.

[bonsai8]

Re: arrangement fee of secured loan

Thanks for your efforts, i do appreciate it. It is very stressful trying to get a straight answer from them.

[postggj]

Re: arrangement fee of secured loan

an arangement fee is a charge for credit and should not have interest charged against it,
saying that how is this fee included

is it in the amount of credit or total amount of credit

[bonsai8]

Re: arrangement fee of secured loan

Thanks Keithposty,
The exact wording says " You must pay an arrangement fee of £960. This will be added to the credit we are giving and repaid, along with the interest on it, by inclusion in your monthly payment. You should note, therefore, that your total borrowing from us is the amount shown plus the arrangement fee" .
hope that this is the information you needed. Its all very confusing at the mo, not sure how to go about the next stage with Paragon. Any help you can give me would be gratefully appreciated.:santa1:

[postggj]

Re: arrangement fee of secured loan

REALY NEED TO SEE THE AGREEMENT
TO TRY AND MAKE IT SIMPLE, TOOK ME AGES TO UNDERSTAND

LOAN SAY (a) 10000 THATS THE AMOUNT OF CREDIT
insurance (b) 1000 thats a total of a and b 11000 amount of credit

then there are extras

acceptance fee
charge for credit these would be included in the total amount of credit

if the acceptance fee say 500 was added to a and b giving an amount of credit of 11500

that would invalidate the agreement

google wilson v fct

http://www.publications.parliament.u...710/will-3.htm

i bet you are more confused than me

like i said

need to see the agreement

[bonsai8]

Re: arrangement fee of secured loan

Thanks, how do I scan the document so that I can send it to you?

[Curlyben]

Re: arrangement fee of secured loan

BUT, please read the court of appeals judgement in Walker Vs SPPL which sheds more light on what is classed as Cost of Credit.

They held that the arrangement fee CAN be interest bearing.

[postggj]

Re: arrangement fee of secured loan

Quick Question

What Would Be The Out Come If The Defendant In A Court Claim Quoted Wilson V Fct And The Creditor Comes Back With Walker V Sppl

Thanks For Getting The Grey Cells Going And ValuE Your Imput

[Curlyben]

Re: arrangement fee of secured loan

Really depends on how the agreement is set out, as you mentioned earlier.
After all the arrangement fee may well fall under s18, restricted use credit, and so fall into the realms of SPPL.

[postggj]

Re: arrangement fee of secured loan

Ime Going To Read The Full Judgement Later
Learn Some Thing New Today

Thanks

[Curlyben]

Re: arrangement fee of secured loan

No worries, but it's not all cut and dried.
The format of the agreement is extremely important in a case like this, especially with the sums involved.

[bonsai8]

Re: arrangement fee of secured loan

is there a way of sending the agreement privately via email as I cannot work out how to attach it to the forum thread!!!