LawAnswers.com.au - Australia's #1 Legal Community

LawAnswers.com.au is a community of 10,000+ Australians, just like you, helping each other.
Ask a question, respond to a question and better understand the law today!
Join us, it only takes a minute:

QLD Baycorp Taking Over From GE Capital - Legal to Charge?

Discussion in 'Debt and Bankruptcy Law Forum' started by Breakerm, 7 March 2015.

  1. Breakerm

    Breakerm Member

    Joined:
    7 March 2015
    Messages:
    2
    Likes Received:
    0
    Hello
    Baycorp ( debt collectors) have taken over an account from GE Money (a division of GE Capital) and I've got a payment plan in place now but they wanted $1000 cash to stop interest being charged, but I could only come up with $500 so interest is still being charged on this debt. My question, is it legal for them to keep charging interest on this debt as they are not a lending institution?

    Thank you in advance.
     
  2. Sarah J

    Sarah J Well-Known Member

    Joined:
    16 July 2014
    Messages:
    1,314
    Likes Received:
    243
  3. Breakerm

    Breakerm Member

    Joined:
    7 March 2015
    Messages:
    2
    Likes Received:
    0
    Thanks I hought this was a web site where I could get questions answered I didn't realise It was just a site to get directions to who might be able to answer me. Sorry must misread the details of this site v
     
  4. John R

    John R Well-Known Member

    Joined:
    14 April 2014
    Messages:
    637
    Likes Received:
    165
    Hi @Breakerm,
    1. What does your GE Money agreement state in relation to debt collection and/or default interest?
    2. What does your payment plan agreement (if you have one) with Baycorp state in relation to interest?
     
  5. Sarah J

    Sarah J Well-Known Member

    Joined:
    16 July 2014
    Messages:
    1,314
    Likes Received:
    243
    Hi Breakarm,

    The answer to your question, as John pointed out, depends on
    • Your financial agreement (nature, form, content, validity);
    • What they told you at the time of agreeing to this financial agreement;
    • Your original agreement with GE Money (especially, the provision in relation to charging interest on outstanding debt and penalty clauses)
    Entering into a financial agreement does not automatically cancel penalties and interest GE Money is able to charge you under the original agreement. It only acts as a waiver for GE Money to take more drastic measures (e.g. enforce security/guarantees/apply for charges). The extent of this waiver depends on what GE Money and you agree to. Therefore, if they did not specifically agree to waiving interest, then you cannot assume they have waived the interest. You will need to look at the original agreement.

    Generally, this is not governed by legislation. Rather, it is contract law which means: what did the parties agree to? However, you may be protected by other laws/regulations (e.g. misrepresentation; policies of financial institutions).

    We cannot advise you on your specific agreement because
    1. We cannot read your agreement (and we do not recommend you upload details of your agreement on a public site);
    2. We do not know what was said exactly at point of agreement for the financial arrangement; and
    3. We are not here to offer legal advice in a professional setting (we cannot replace a hired lawyer).
    The reason I point you to the Financial Ombudsman Services is because they are a free service that assists consumers and individuals who have disputes with financial institutions such as GE Money and debt collectors. They will be able to offer you free, case-specific advice on your matter. They may also contact GE Money, as an objective third party and work toward reaching a mutually-beneficial solution with both parties. It is your choice whether you wish to contact them or directly seek legal avenues.
     
  6. Sarah J

    Sarah J Well-Known Member

    Joined:
    16 July 2014
    Messages:
    1,314
    Likes Received:
    243
    In relation to Baycorp charging you interest:

    Whether Baycorp can charge interest depends on the debt purchase agreement between Baycorp and GE Money. They are "taking over GE Money's debt" which means they buy GE Money's rights under the original agreement (including the right to be paid accumulated interest and penalties that GE Money otherwise would have access to). To what extend they can access/enforce GE Money's rights depends, again, on (i) the agreement between the parties; and (ii) your agreement with GE Money (both original agreement and the financial agreement).

    However, if GE Money has waived their right to charge interest and penalties under the financial agreement, then it is reasonable that Baycorp also not charge this. There may be some misrepresentation or other cause of action here. This will depend on the specifics of your situation.
     

Share This Page

Loading...