HFC Bank - Accrued Interest? Whats this about?

Dannyboy83

Hi,

I got a letter yesterday from HFC Bank telling me that my account had accrued interest.
I bought a Laptop from PC World in December 2007.

I've never missed a payment or anything like that.

I got a letter saying my outstanding balance is 635.
My account has accrued interest and if I want to go interest free, I have to ring them by January 14th (I just got it yesterday at 7.30pm on January 14th)

Before I give them a phone call and ask what is this all about, could somebody explain if this is a bad or a very bad thing?

Its start to smell of loan sharking right now. At this rate, I plan to just pay it off in full over the next 3 months and be done with it.

FYI: BEFORE YOU WASTE YOUR TIME ANSWERING, THIS MATTER IS RESOLVED, BUT THANKS ANYWAY
FYI: ***CANCEL YOUR STANDING ORDERS IF YOU SETTLE YOUR ACCOUNT

ScouseMouse

I rang them yesterday as I knew my interest period was up around now. They claim they sent me a letter three weeks ago giving me the option to pay the balance and avail of the interest free credit option, or keep paying by standing order and end up paying massive interest. I pointed out to them that I did not get any letter or reminder and IF they did send it, it is probably still stuck in the christmas post somewhere.

They gave me their account number and said I could pay by bank transfer. There is no way I am letting a bill jump from 168 up to nearly three hundred because of this and I told them so. I got the total off the girl yesterday and sent it with AIB internet banking last night.

Ring them on 01 6569311 and tell them so.

Dannyboy83

Hi mate,

So you paid the outstanding balance, meaning that your now done with the payments?

i.e. you have everything paid off and you don't have to deal with them anymore?

Sorry for the questions, I'm a bit thick about their system, I just figured it was like a normal bank loan.

I have made some awful dumb mistakes since 2007, but at least I'm learning/getting experience anyway.

I'm not going to use their services again.
In future, I will just save the cash and buy, rather than mess with these headaches.

jor el

Dannyboy83 wrote: »

I bought a Laptop from PC World in December 2007.

I've never missed a payment or anything like that.

I got a letter saying my outstanding balance is 635.
My account has accrued interest and if I want to go interest free, I have to ring them by January 14th (I just got it yesterday at 7.30pm on January 14th)

Let me know if this is right? You bought a laptop a year ago, and on the 12 months interest free credit offer. After 12 months, the laptop is maybe 50% paid off. At this point, you must pay the remaining balance (which they say is 635 euro). That must be paid by a certain date, and would have been outlined in the original agreement. That date seems to have been Jan 14th.

The letter is informing you that you have not cleared your balance, and therefore the payments will continue, but not interest free. At this point, they will likely be applying 29.9% APR, either to the remaining balance, or to the entire original amount. Check the terms on the original credit agreement to see exactly what's being charged.

If I'm right in what I said above, then you're going to end up paying a whole lot of money for this. There's no way out of it, as it was a legally binding credit agreement that you signed up for. The delay in receiving the final notice can't really be put on HFC (although I'm convinced that the pre-date these letters so that you won't receive it before the deadline), but that deadline will have been outlined in the original agreement, and it's up to you to pay the full balance before this.

Someone was asking just last week, about interest free credit in Harvey Normans. This is exactly why I advised that person not to use it. They are little short of a con.

Dannyboy83

jor el wrote: »

Let me know if this is right? You bought a laptop a year ago, and on the 12 months interest free credit offer. After 12 months, the laptop is maybe 50% paid off. At this point, you must pay the remaining balance (which they say is 635 euro). That must be paid by a certain date, and would have been outlined in the original agreement. That date seems to have been Jan 14th.

The letter is informing you that you have not cleared your balance, and therefore the payments will continue, but not interest free. At this point, they will likely be applying 29.9% APR, either to the remaining balance, or to the entire original amount. Check the terms on the original credit agreement to see exactly what's being charged.

If I'm right in what I said above, then you're going to end up paying a whole lot of money for this. There's no way out of it, as it was a legally binding credit agreement that you signed up for. The delay in receiving the final notice can't really be put on HFC (although I'm convinced that the pre-date these letters so that you won't receive it before the deadline), but that deadline will have been outlined in the original agreement, and it's up to you to pay the full balance before this.

Someone was asking just last week, about interest free credit in Harvey Normans. This is exactly why I advised that person not to use it. They are little short of a con.

Correct mate, Apr @ 29.5%

Its all out sorted now.
I rang them up and blew the head off the poor woman on the telephone.
I told her I was settling within the Free Interested Period and not accepting no for an answer.

I just made a final transfer of 619 Euro straight to their account from AIB Online with the details she gave me (there was already a January Monthly SO for 35 gone out)

I cancelled the Standing Order myself - they 'forgot' to mention I should cancel it until I asked.

==========
To be honest, I get the feeling this was done on purpose. I remember a letter a few months ago saying they were pulling out of Ireland.
The woman on the phone didn't seem the least bit surprised (maybe she was just good at her job tho) and just gave me the settlement details.



The joke is that I ordered something from Pixmania on the 19th of December and there were mahoosive delays with DHL including the package getting lost, being repacked and it still got to me by 09/01/09.

Apparently this letter was posted to me on Saturday the 20th of December.

=====

The laptop was 1,039
I paid E1,275

I've no problem with that.
Its the underhandedness in trying to make you fcuk up/be fined/pay big interest that I do have problems with.

Dannyboy83

***SUPERSCOUSE*** - be sure to canel the Standing Order yourself, if you have not already done so and the balance is paid in full

Jip

How is it a con ? A consumer enters an agreement with HFC knowing that they're getting one year intested free credit. They can then pay this outstanding balance towards the end of this period or else continue on into the second year. If they choose the latter option they will then be stuck on a very high interest rate which will be added to their repayments.
It's all in the documentation when you sign up, there's nothing underhand or sly about it.

Dannyboy83

Credit Union or AIB for me from now on I think:D

No more of this tripe.

Dannyboy83

Jip wrote: »

How is it a con ? A consumer enters an agreement with HFC knowing that they're getting one year intested free credit. They can then pay this outstanding balance towards the end of this period or else continue on into the second year. If they choose the latter option they will then be stuck on a very high interest rate which will be added to their repayments.
It's all in the documentation when you sign up, there's nothing underhand or sly about it.

Jip, Read what I wrote above about the letter arriving & expiring on the 14th, automatically putting me into the high interest rate zone.

No problem if I'm sitting around all day at home, but I do have a job to go to and don't get home until 7.30pm, 9pm if I'm going to the gym.

frag420

i took out a similar agreement with them on a mac i got from o2. Now the deal was done in oct 07 but the shop had lost my details and nothing left my account untill feb/march of 08. I had to go into the store in Dublin and enquire as to why they were not taking anything for the mac from my account. i was wondering if the twelve months is from when i signed up of from when they took first payment as they(hfc) could not have had my details as the 02 had misplaced them for a few months. I also changed address since. Any help here wold be appreciated.

cheers

Jip

Dannyboy83 wrote: »

Jip, Read what I wrote above about the letter arriving & expiring on the 14th, automatically putting me into the high interest rate zone.

Sorry, wasn't aimed at you, was aimed at the poster saying they were cons.

Dannyboy83

Hi mate,
I'm no expert as you may have guessed.
But I would just do a quick calculation in my head and figure out which option is going to make more money for them.

That is the option I suspect they'll go for.


I would go to the shop, or ring HFC up, explain your case and don't take no for an answer.
Be as rude an obnoxious as you can - because it was not you who made the mistake, so why should you suffer for it?

If you settle outside the free interest period, you'll be paying a big chunk of money.

Have you received any letters from HFC at all?

eth0_

It's not a con. If you're that stupid that you can't make a note of the settlement date for the interest free period (which is printed clearly on the copy of the credit agreement you signed!!), then you really shouldn't be getting any sort of loan.

I've bought several items through HFC over the years and never had any problem, always reminded in time of the date the interest free period ended.

jor el

Jip wrote: »

Sorry, wasn't aimed at you, was aimed at the poster saying they were cons.

Con was the wrong word. They make use of the fact that people will not be aware of what they were entering into, or that they will not clear the balance in the allotted time. They then clean up on the very high interest rates that are applied. It is your own fault if you get caught out by it, as I said in my post, it's all detailed when you take out this loan and it's up to you to know when and how it ends. The lenders do seem to be very slow about pointing out this end time too though, which will not help anyone who's lazy, ignorant or just doesn't know any better.

ScouseMouse

I like the HFC credit agreements. The problem I had was, they didnt send me the letter advising me to pay up or get stung for the massive interest. When I rang them, I was told it was sent out three weeks ago. That brings it into the christmas post, no surprise I didnt get it then. I paid online last night and cancelled the standing order online too. AIB internet banking can be handy at one in the morning.

While the lady did give me the settlement figure AND the interest inclusive figure at the same time, I have sent them just the settlement sum.

Like all agreements, if you stick to it, you are fine. The OP has a relevant point about not getting the letter in time. It was not his fault, perhaps it was their fault or maybe it wasnt. It is irrelevant. As long as he talks to them and settles it now that SHOULD be the end of it.

These agreements are fine if you stick to the terms agreed. I have got credit all over the city in different stores and my name is good. I have never paid any interest and I like the feeling that if my TV/Cooker/Computer blew up tomorrow, I can go out and pick up another one on credit with no problems whatsoever. :D