Late payment charges

[aiee]

Please help me with some advice..

 

I bought a Super4 about 8 years ago from B Motors on hire purchase agreement. Installment of $212 for 4 years.

During this period, when i went there to pay mthly installment, occasionally they inform me i've incurred late payment charges so i paid on the spot.

When i went there for the last installment, I requested for my vehicle registration.

That's when they inform me Ive accumulated about $800 just on late payment charges alone!!

When asked why they didn't inform me when I'm paying my monthly installment, the reply from one of the salesman was it's NOT THEIR RESPONSIBILITIES to inform me about the interest.

I tried to negotiate the amount but they won't budge. Tried once more to negotiate over the phone, still they insist on the amount.

 

1ST QUESTION - ARE THEY ALLOWED TO ACCUMULATE INTEREST IN THAT MANNER, NOT INFORMING THE BUYER TILL THE VERY LAST INSTALLMENT?

And as I dun have that amount of money back then, I just chuck the issue aside..

 

So moving forward about 1 year later, I went overseas to work. Forgotten about the whole issue. Recently, decided to sell the bike.

Went to a bike shop to get valuation, they informed I won't be able to sell it as it's still under the hire purchase agreement.

When I called them to inquire about the outstanding amount, it had accumulated to $2599!!!

 

2nd QUESTION - ARE THEY LEGALLY ENTITLED TO INCUR INTEREST ON THE LATE PAYMENT CHARGES ALONE?

There wasn't a single attempt to inform/ remind me about the outstanding amount, neither through phone nor mail.

They conveniently did not attempt to recover the amount, yet still accumulating interest on my outstanding charges, as they knew from the beginning i would have issues when scrapping or selling the bike eventually.

 

So final question - SHOULD I PAY OR CAN I FILE A COMPLAINT WITH ANY AUTHORITY REGARDING THE MANNER THEY ARE CHARGING ME WITH THE LATE PAYMENT CHARGES?

Obviously, ethically B Motors have a HUGE issue with how they are dealing the above matter. Even banks will hunt you down to make sure you settle your outstanding amount.

 

Please, anyone with such experience, give me some advice on what steps to take next..

Edited January 22, 2011 by aiee

[pyro13]

Please help me with some advice..

 

I bought a Super4 about 8 years ago from B Motors on hire purchase agreement. Installment of $212 for 4 years.

During this period, when i went there to pay mthly installment, occasionally they inform me i've incurred late payment charges so i paid on the spot.

When i went there for the last installment, I requested for my vehicle registration.

That's when they inform me Ive accumulated about $800 just on late payment charges alone!!

When asked why they didn't inform me when I'm paying my monthly installment, the reply from one of the salesman was it's NOT THEIR RESPONSIBILITIES to inform me about the interest.

I tried to negotiate the amount but they won't budge. Tried once more to negotiate over the phone, still they insist on the amount.

 

1ST QUESTION - ARE THEY ALLOWED TO ACCUMULATE INTEREST IN THAT MANNER, NOT INFORMING THE BUYER TILL THE VERY LAST INSTALLMENT?

And as I dun have that amount of money back then, I just chuck the issue aside..

 

So moving forward about 1 year later, I went overseas to work. Forgotten about the whole issue. Recently, decided to sell the bike.

Went to a bike shop to get valuation, they informed I won't be able to sell it as it's still under the hire purchase agreement.

When I called them to inquire about the outstanding amount, it had accumulated to $2599!!!

 

2nd QUESTION - ARE THEY LEGALLY ENTITLED TO INCUR INTEREST ON THE LATE PAYMENT CHARGES ALONE?

There wasn't a single attempt to inform/ remind me about the outstanding amount, neither through phone nor mail.

They conveniently did not attempt to recover the amount, yet still accumulating interest on my outstanding charges, as they knew from the beginning i would have issues when scrapping or selling the bike eventually.

 

So final question - SHOULD I PAY OR CAN I FILE A COMPLAINT WITH ANY AUTHORITY REGARDING THE MANNER THEY ARE CHARGING ME WITH THE LATE PAYMENT CHARGES?

Obviously, ethically B Motors have a HUGE issue with how they are dealing the above matter. Even banks will hunt you down to make sure you settle your outstanding amount.

 

Please, anyone with such experience, give me some advice on what steps to take next..

 

A bit confusing.. If u paid the late payment on the spot, how come still got 800 accumulated??

 

If u settled the bike instalment 4 years ago, y stil got hire purchase? How did u renew insurance?

[aiee]

A bit confusing.. If u paid the late payment on the spot, how come still got 800 accumulated??

 

If u settled the bike instalment 4 years ago, y stil got hire purchase? How did u renew insurance?

 

 

Well, the thing is the cashier will only inform me randomly about the charges.. As & when they feel like informing me!

So for most period during the 4 yrs, they just kept silent on the LPC.

 

And a further point is initially, my due date was set on every 15th.

But I informed them that as my salary is credited at the end of the month, is it fine to change the due date till the end of the month.

One of the salesman verbally told me it's fine.. Which was my mistake since I do not have it in ink!

 

As per the other bike shop, my bike is still on hire purchase as B Motors is still holding onto my vehicle registration log card!

But I manage to renew my insurance yearly directly from NTUC without any issue.

In fact, I've just recently renewed my COE even last Nov 10 through online LTA service!

 

And I have a further question.. can I scrap the bike without requiring the log card since I can't sell it off??

[pyro13]

Well, the thing is the cashier will only inform me randomly about the charges.. As & when they feel like informing me!

So for most period during the 4 yrs, they just kept silent on the LPC.

 

And a further point is initially, my due date was set on every 15th.

But I informed them that as my salary is credited at the end of the month, is it fine to change the due date till the end of the month.

One of the salesman verbally told me it's fine.. Which was my mistake since I do not have it in ink!

 

As per the other bike shop, my bike is still on hire purchase as B Motors is still holding onto my vehicle registration log card!

But I manage to renew my insurance yearly directly from NTUC without any issue.

In fact, I've just recently renewed my COE even last Nov 10 through online LTA service!

 

And I have a further question.. can I scrap the bike without requiring the log card since I can't sell it off??

 

If u could renew ur insurance from ntuc straight, doesnt tat mean its okay? As ntuc wil ask u to go bk to ur shop if its under hire purchase