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Debt Advice

Debt Advice

June 2006 Client S had taken out a ‘buy now pay later’ agreement for goods to the value of £3,020.00. Sum included added interest that would be incurred if the goods were not paid within the year. Some time later the client had cancelled an additional service plan in May 2006. He went to repay the account in June of 2006 and was told he had been given an extra year. He decided to pay off two other accounts, which he owed believing he now had until June 2007 to pay off this account.

He got a shock; financiers had activated not only the direct debit for that account in May 2007 but also another account, which had been paid off. As they were unable to extract their payment, this incurred two separate bank charges of £28 each.

Our debt advisor instructed Client S to go to the shop from which he purchased the goods and to get a printout of his original sales agreement, as it was possible that the cancellation of the service plan had triggered something. The printout included everything that had been bought, the date of sale and the date of the cancellation of the insurance. The shop advised our client that the original agreement, which was signed in June 2006, was the only agreement that there was.

Our Advisor wrote to the financier for an explanation of the time frame of the agreement as our client had got an extra year to make the payment. If he had been given a year then this agreement should have ended in June 2007 (12 months) and not in May (11 months). We enclosed all other evidence pertaining to the sale. This included,

Copies of the agreement,
Client’s receipt
Shops printout.
We also advised our client to pay off £2,350.00, which was the amount less the interest to be paid before June 07, which he did.

Further to our letter we received feedback from the financiers, who realised that a new account had been created by mistake. This meant our client had two accounts: the original one, which had ended in June 06, and a new one allowing him an extra year.

The financier cancelled the new account and marked the client’s account as settled in full. Our client also had his bank charges of £56 reimbursed. We further checked to ensure that our client’s credit rating on both Experian and Equifax were cleared. Had this problem not been resolved our client would have had to pay £670 of interest and also £56 in bank charges.

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SCA Limited Montague Centre Broadway, 2 Fallswater Street, Belfast BT12 6BZ Tel: (028)9024 8509