First Plus - unaware of deferred interest

[penninewanderer]

Hi, I wonder whether anyone could offer any advice on a problem we are having with Elderbridge chasing us for deferred interest allegedly charged First Plus?

We recently received a letter form Elderbridge advising that they had taken over from First Plus and that there was an outstanding balance of approx. £7K on our account. On settling this we rang Elderbridge to confirm that the account was clear only to be told that there was a further amount of £17K outstanding as the result of deferred interest.

This amount has never been shown in any correspondence or statements we have received. Elderbridge tell us that they or First Plus weren't required to tell us about the amount as the account wasn't covered by the Consumer Credit Act.

They are therefore charging us for a figure that can only be considered arbitrary as they are unable to provide any statement or calculations to justify it.

Are they allowed to pursue for this amount?

Many thanks for your help

[Fred]

Re: First Plus - unaware of deferred interest

Firstplus payments are based on their monthly interst rates over the term, not the APR which would normally be slightly higher to cover extra charges. This would/could mean that your last scheduled payment may not cover the total cost of the loan.

I have never seen a deferred interest claim from FP or Elderbridge before (not to suggest they don't) if there are any arrears or disputes on matters then Firstplus would put any arrears or charges into a separate pool so as not to accrue compound interest.

On an unregulated loan, they do not have to provide statements unless you request as much & even then can levy a charge for doing so.

Are they allowed to pursue for this amount?...............that depends what it is for & why, you need to ask them what this is all about in detail, when, what for, how has this been calculated ?