Paying Off Debt + Added Fees

10 replies
Found 24th Aug 2010

I'm writing on behalf of a friend who purchased a suite from a furniture company. He went through their finance option, where he has to pay so much a week or month via direct debit.

I'm going to pay off the debt, but looking through letters from the finance company "Creation Consumer Finance Ltd Belfast" i see they have added fees due to payment problems, so i would like some advice before i make payment.

Are these fees legal, and will i have to pay them?

One arrears letter states they have charged an administration fee of £25.00 for sending a letter.

Another arrears letter states due to the failure of the direct debit commitment, they have charged a further £30.00 administration fee.

Thank you for your time.


'Administration' fees are usually around £20-£30, I managed to get mine dropped from the bank, so you might be able to if you phone them.

I would imagine that if you're going to pay the full balance, then it's worth discussing with them that perhaps they waive the admin/late payment fees as a good-will gesture.


yep - banks charge for admin so no doubt credit firms can too.


The best thing to do in this instance would be to get hold of the Terms & Conditions of the original contract to see what they consider to be administration fees.

Usually outside of the ordinary course of dealings (receiving and processing payments, accepting orders) they can charge for dealing with other matters. In these instances it is vital that you read their terms before signing and always keep a copy. It doesnt matter how detailed these terms are. You are to be bound by them so you need to know what they are.

It'll probably say they are entitled to charge 'reasonable' costs so you could possibly argue they were unreasonable,

you could check out their terms on their website


Edited by: "grabbit" 24th Aug 2010

Admin fees is where they screw you - take the easy option and pay up (Y)


Not doing this for some bird are you? Best left well alone if you ask me.

I bought a TV ages ago, didn't have all the money in my account for payment instantly so used Bennetts buy now pay later option. They use creation customer finance so had to sign up with them, paid it in full the month after so wasn't liable for any charges...however I did notice that there charges (and they seemed to charge for everything) were very high!!

apparantly it is illegal to charge punative fees on any financial account above normal proceesing fees. a normal fee is considered about 5 to 10 pounds, anymore and its a grey area. there was a hoo haa few yrs back
about overcharging and ppl having their unauthorised debit etc fees being refunded. charges are not supposed to be a 'fine' as such but thats standard practise in uk banking in my experience.my advice is to say these charges are punative and not acceptable as standard admin charges and see wat they say. good luck!



Which law? Are you talking about the big hoo haa with over … Which law? Are you talking about the big hoo haa with over draft/bounced/late fees etc, you know whte case whicc the banks actually one in the end when it was ffound these charges are lawful.

Ahhh money talks... and writes laws!!
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