Legality of charging interest for asset finance holiday?

[Mandat]

Joscal said:

We have a considerable amount of asset finance and have asked for a holiday for obvious reasons and have been offered it but with a charge of 11k for the pleasure.

Is this legal under the circumstances? I know the UK banks have had their knuckles wrapped but not sure about the others. I won’t name them but they are a big player in my industry (machinery.)

Any advice much appreciated as I feel like they are taking the piss.

How has the £11k been arrived at?

You say that it feels like they are taking the piss. Without actually running the numbers how do you know if they are or are not?

Is it the actual interest due on the outstanding loan for the duration of the 3 month payment holiday? If so, then I would say that it is legitimate, as you are borrowing the money for 3 months longer.

[Joscal]

Got my answer so deleted.

[SS2.]

Joscal said:

Got my answer so deleted.

What was the answer ?

[So]

Joscal said:

Got my answer so deleted.

Helpful.

We've got a sum in asset finance (a few £m) and there have been no fees for a payment holiday. Interest added to the capital sum.

[Joscal]

I don’t have the full details but they are charging us. RBS aren’t as they are still in government hands.

We will not get away with charging our customers any extra that’s for sure..

[Joscal]

So said:

Helpful.

We've got a sum in asset finance (a few £m) and there have been no fees for a payment holiday. Interest added to the capital sum.

I don’t have the full facts so thought I’d just delete it! Apologies.