Getting myself out of debt

[The Tech Clerk]

Sold Debt to Lowells no doubt so their account would show Zero, CRA default would show original default date but

[The Tech Clerk]

pay by date?

[debrag]

date of notice and rectification date??

Date of letter is 18th September 2018

[debrag]

Do you mean your credit limit is £0 (because they've reduced it which they may be able to do just like they can increase a credit limit) or do you mean the outstanding balance is £0?

Di

I mean limit is zero as I said, balance is £1742.18.

Well the purpose of the default Notice is so that if you pay up what is outstanding the account can continue.
You are given a period to comply before the A/c is closed.
Now if the credit limit is £0 that means they have closed the A/c at the same time as sending the default notice!!
I am not a lawyer but I should file that away very carefully.

Recieved notice of assignment letter from JD Williams, stating that one of the following companies Lowell Group Ltd or Intrum UK Finance Limited may acquire the account, within the next 4 to 8 weeks.

Still a waiting game then.

[Roger]

If the Debtor repairs the Default Notice (missed payments) then the Debtor can continue to draw Credit (The Agreement) however if the credit limit is 0 this means the whole outstanding debt is due.
Suspended or Terminated?

[Joanna Connolly Solicitors]

Finally received a default notice in the post and my credit limit is now £0.

Do you mean your credit limit is £0 (because they've reduced it which they may be able to do just like they can increase a credit limit) or do you mean the outstanding balance is £0?

Di

[Roger]

Finally received a default notice in the post and my credit limit is now £0.

Well the purpose of the default Notice is so that if you pay up what is outstanding the account can continue.
You are given a period to comply before the A/c is closed.
Now if the credit limit is £0 that means they have closed the A/c at the same time as sending the default notice!!
I am not a lawyer but I should file that away very carefully.

[The Tech Clerk]

date of notice and rectification date??

[debrag]

Debt 4 JD WIlliams

Opened:	June 2013
Type:	Catalogue
Current Balance:	£1740
Last payment:	£1.00 | July 2018
Last fill payment:	December 2017
Arrangement:	DMP till May 2018
Status:	Late payment on credit report
Owner:	JD Williams

2018
March - Payment arrangement confirmation for Payplan's DMP, not longer using them.
July - Received arrears letter and fact sheet from FCA
August - Received letter stating they haven't received payment from Payplan etc etc I have an overdue payment of £78.16. Will it carry on like this forever or will they eventually default?
August - Payplan agreement finally cancelled by JD Williams
October - Default noticed recieved

Finally received a default notice in the post and my credit limit is now £0.

[debrag]

My guess, and until you get something in writing it is a guess ,
The account may well have been sold on , possibly to cabot (hopefully Cabot Financial (UK) )
If it has been sold you will probably get a new entry on your credit report from the new owners but the default date MUST be the same

If it has been sold, wait and see what they want to do - it might be send a S77 request but don't do anything just yet

Just checked my updated Noddle report and the loan is still open on there but closed on Clearscore

[debrag]

The Very account does seem wrong to me

You have not made a full payment since Nov 2017 and then only reduced payments until July - were these agreed?

They really should have issued a S87(1) Default Notice and closed the account not reduced the credit limit. I am not suggesting you do, but I wonder what would happen if you tried to buy something for say $50 - still below the credit limit but you are in arrears.

When debts are sold, yes they are sold for maybe 10% of the value but they write the loss off against tax and of course they do not need to employ people to collect. It also keeps bad PR at bay

Both Very and JD WIlliams are just wrong. Both show DM on my Noddle report and have been since March time. When I queered this with NCO/Very I was told if I don't clear the arrears in 12 months then they default, they want to 'help' me! I'm been DM or AR with Very since December 2017 and AA or DM with JD WIlliams since December 2017!

Very actually reduced the credit limit February 2018, JD Williams reduct my limit to £0 February 2018 and it increases with each payment I make, it's currently £2.

[Roger]

I don't know what you are talking about here. I was referring (my own case) to a situation of a live non-default account where it is clear that only just above minimum payment is being made month after month. The lender's risk-based pricing swings into action, and your interest rate is substantially increased, which pushes you deeper into difficulty, then they reduce your credit limit leaving you with next to no spending headroom.

And I do know the difference between capital and interest, and what compound interest is.

Furthermore, if you look at cc t&c's you will see that in allocation of repayments, capital repayment comes after payment of interest, so the balance outstanding would never become almost all interest, but would consist of purchases predominantly.

APR with Credit Cards is a different kettle of fish from other Loans . Revolving Credit as opposed to fixed term debt @ lower interest rates.
As you point out the actual allocation of payments is set out in the terms BUT follows the principal of earliest debt first followed by later debt.
However not ALL debts are charged at the same rate. Sic 0% on some and full APR on others.

Minimum payments. At one time these were 3% but later were permitted at 2.5% of outstanding balance without distinguishing between earlier and later debts. which can literally add years to repaying if only minimum payments are made.

The higher APR for Credit Cards tells you that you are being charged for rather more than the outstanding debt. The APR is intended to cover the Banks perception of risk in revolving credit. In other words on paper your capitol debt is being slowly paid off (earliest debts first) but the Bank is offsetting that actual debt through the APR but for their purposes. That offset isn't being applied to your book debt!

Consider Accounting includes depreciation of assets. Banks routinely provide for Bad Debts.
Do you not think that Debts over time are depreciated whilst on paper retaining a full book value!

Bulk debt purchasers routinely (monthly) buy tranches of debt. Obviously the Banks expect for and make provision for selling Debt APR.
By the way the bulk debt purchasers BANK their collections thus putting the collected monies back into the Banking system .
.

[Still Waving]

Banks charge against debt is this interest!

What happens is the debt becomes almost completely compounded interest (interest charged on existing outstanding interest ) rather than capitol repayment (that's the part of the debt that is goods/services/purchases etc..).
Some of these sold debts are almost entirely compounded interest! Which is also why they are sold for pennies in the pound.
Think of Pay Loans.

I don't know what you are talking about here. I was referring (my own case) to a situation of a live non-default account where it is clear that only just above minimum payment is being made month after month. The lender's risk-based pricing swings into action, and your interest rate is substantially increased, which pushes you deeper into difficulty, then they reduce your credit limit leaving you with next to no spending headroom.

And I do know the difference between capital and interest, and what compound interest is.

Furthermore, if you look at cc t&c's you will see that in allocation of repayments, capital repayment comes after payment of interest, so the balance outstanding would never become almost all interest, but would consist of purchases predominantly.

[Roger]

Money stays within the banking system even when it has been sold as bad debt.
The reason is because the bulk debt purchasers obviously bank the recovered debts as deposits with their Bankers.
The debt purchasers seek to maximise the return from debt so Creditors are profiled as to the level of debt, home owners etc. etc.

Debt set of for tax purposes? Well we the tax payers are being pursued for the full face value of that debt in Law and guess what it is Our Taxes which will make up the deficit (in taxes) of the banks contributions.
See if the tax in the economy is reduced (set off) WE make up that deficit! .

[Warwick65]

The Very account does seem wrong to me

You have not made a full payment since Nov 2017 and then only reduced payments until July - were these agreed?

They really should have issued a S87(1) Default Notice and closed the account not reduced the credit limit. I am not suggesting you do, but I wonder what would happen if you tried to buy something for say $50 - still below the credit limit but you are in arrears.

When debts are sold, yes they are sold for maybe 10% of the value but they write the loss off against tax and of course they do not need to employ people to collect. It also keeps bad PR at bay