shop direct debt

[malky1]

Re: shop direct debt

What's the best way(or has anyone a template letter) to write to shop direct and ask to have my £3000 interest waived as my original debt was for £5617 and not the £9000 with all things added on.I have paid over £3000 to this debt already.sorry all for sounding repetative but i think i shall try and go down this route after all of everyone's hard effort to try and help with my situation.

[basa48]

Re: shop direct debt

Can you post up the agreement you were sent please?

Going to court to stop the interest is not something to entertain, the lower repayments are set in the offer they gave you. That's a negotiation. Nothing more. You need to lok into an FOS complaint based on what you were paying, the circs, and the fact contrary to OFT 664 you were tied into a new finance deal to deal with this. Nobody should take on a debt to deal with a debt.

TBH the FOS are a waste of time.

I would try to negotiate both reduced payments (particularly if you can justify it with an I&E) and reduced or nil interest. 40% is disgusting and I'm not sure converting this account to a loan is kosher.

Chances are the lender will not co-operate, whereas a court order if presented with realistic arguments could be made in your favour.

[labman]

Re: shop direct debt

TBH the FOS are a waste of time.

I would try to negotiate both reduced payments (particularly if you can justify it with an I&E) and reduced or nil interest. 40% is disgusting and I'm not sure converting this account to a loan is kosher.

Chances are the lender will not co-operate, whereas a court order if presented with realistic arguments could be made in your favour.

There speaks a man after my own heart. I totally agree!

[basa48]

Re: shop direct debt

OK just to precis all this:

1. You had a credit account with Additions (which is actually Shop Direct) which grew to a debit amount of £6K. You fell into difficulty repaying this. I understand you have a copy of a valid credit agreement for this original account.

2. Shop Direct then converted this credit account to a 3 year Loan agreement at 39.9% and added £3k in interest at the outset (which I think is normal practice for fixed term loan accounts). You've been paying this for a year. The repayments of £230 / month are not reducing this debt (although it equates to a total paid over the 3 years of £8.3k).

My only thoughts on this are the terms of the swap to a loan. Was there a formal loan agreement that you signed? If so it is probably binding, if not you may have grounds to challenge its validity. Either way I think it transgresses lending guidelines.

IMO your best course is to pester Shop Direct with requests for reduced payments and to reduce the amount outstanding by reducing that outrageous interest rate. If the changeover to a loan was 'informal' (i.e. by letter only) this would be a good bargaining tool.

A lot depends on the validity of this loan agreement. If it is 'good' no matter how onerous its terms (interest) the court would probably have no choice but to enforce it. If the terms are dubious (i.e. by letter with no signed formal agreement) I think you could expect the court to alter the terms in your favour.

[malky1]

Re: shop direct debt

hi basa48, there was a formal loan agreement that i totally regret signing,if ipester them with a letter what shall i write.

[ed.]

Re: shop direct debt

ost up the terms of the loan agreement, again OFT 664. Whatever anyone else thinks of the FOS I've had good results. But you will have to put the work in on your complaint mate and tie it in. They have put you in further debt through the loan you were forced into...etc.

Malky if you put the work in, you might win...you also haven't talked about charges here?

[malky1]

Re: shop direct debt

Hi ed,sorry i dont know my charges but there must be a few.Does anyone know how to give me a clue of what to write?.THANKS

[malky1]

Re: shop direct debt

Got an annual statement for fixed-sum credit agreement today.The original figure was £5617.77 with interest as it states in letter is £3412.56.It says Credit agreement title:BALANCE TRANSFER over term 156 weeks at an interest rate of 39.9 APR.

[basa48]

Re: shop direct debt

Got an annual statement for fixed-sum credit agreement today.The original figure was £5617.77 with interest as it states in letter is £3412.56.It says Credit agreement title:BALANCE TRANSFER over term 156 weeks at an interest rate of 39.9 APR.

I took it from your post #12 the loan was for 3 years not 13 years !!

Original loan was for £5617.77 + interest £3412.56 = £9030.33

156 payments of £231 = £36036 !!!!!

If the loan is for £9030 at 39.9% APR for 13 years = £310 per month (£47k repaid)

Something doesn't add up.

[malky1]

Re: shop direct debt

Hi Basa48,the 156 weeks equates to 39 payments every 28 days of £231.56,the original debt was £5617.77 and with all their interest added on comes to £9030.33 with the apr at 39.9%.

[basa48]

Re: shop direct debt

Hi Basa48,the 156 weeks equates to 39 payments every 28 days of £231.56,the original debt was £5617.77 and with all their interest added on comes to £9030.33 with the apr at 39.9%.

Doh !!! Sorry, misread your post as 156 months not weeks. It all makes sense now :nod:

I would still bombard them with pleas to lower that interest rate, plead poverty suggesting they might get nothing if it went to court.

[malky1]

Re: shop direct debt

I want to send them a letter but dont know where to start or what to put????

[labman]

Re: shop direct debt

The DMP suggestion you have rejected via pm would be my way forward - a professional Common Financial Statement from a reputable charity asking them to freeze charges and interest.

Given you don't want to do that, and have stated your desire to pursue the FOS route, you need to compose an initial draft to the FOS, then post it up here for suggestions / editing.

[labman]

Re: shop direct debt

Hopefully this will be a big help for you! :santa_smiley:

http://www.financial-ombudsman.org.u...complaints.htm

[malky1]

Re: shop direct debt

Got all this debt paid of,i have paid it of roughly 2 years early and are waiting on them sending me a cheque for roughly £1,300 anyone think i could claim all my interest back that i have already paid?