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
- We cannot read your agreement (and we do not recommend you upload details of your agreement on a public site);
- We do not know what was said exactly at point of agreement for the financial arrangement; and
- 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.