Getting myself out of debt

[The Tech Clerk]

do you have the CCA19774 copy if so send to the webmaster to check if enforceable or unenforceable? for starters

[The Tech Clerk]

Warwick65

[Warwick65]

If I am reading the correctly they are saying your complaint is out of time because you took the loan out more than 6 years ago. You are wondering what you should do now?

have I got that right

I would escalate this to the FOS and argue the 6 year time limit does not apply in this case because you only became aware of the possibility these accounts could be classed as unaffordable very recently. You might want to link to debt camels blog because that is much less than 6 years old.

There is no harm in escalating the complaint- in fact these people rely on the fact you WON'T escalate

I have had some sucess in getting debts written off either partially or totally with complaints to the FOS ( I have also had a couple that got me no where)

[debrag]

What should I do about the possible legal action from Credit Resolution Services/Trugym? I don't have a cca and haven't sent a request yet, will try for one today if the post office is open, can I sent an account in dispute letter? They haven't complied with my SAR from 22nd July, I don't think.

Is it legal for them to only accept payments by phone and have no website?

I'm assuming that they will take action two - out source to DCA rather than court for £86

EDIT apparently I can just ignore Credit Resolution Services

[debrag]

Debt 1 Natwest Loan

Opened:	August 2016
Type:	Loan
Current Balance:	£4889
Last payment:	£1.00 | June 2018
Last fill payment:	December 2017
Arrangement:	DMP till May 2018
Status:	DM on credit report

2018
March - Collections letter, i+e attached, ignored
April - closing of accounts letter, payment proposal form attached, ignored
May - Formal notice of intention to file a default
June - Notice of arrears in compliance with CCA 1974
June - Notice of refund of interest (£468
June - You have fail to comply letter received
July - changes to ongoing management of repayment plan, partnered with Wescot, in touch within 14 days to management provider (no longer with them)
August - yearly statement received
September - credit report updated and loan is closed

Account is now closed so I take it it has been sold on, the OD is still open though

[Warwick65]

Account is now closed so I take it it has been sold on, the OD is still open though

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

[debrag]

Debt 3 Very

Opened:	December 2016
Type:	Catalogue
Current Balance:	£767
Last payment:	£1.00 | July 2018
Last fill payment:	November 2017
Arrangement:	DMP till May 2018
Status:	Late payment on credit report
Owner:	Very (NCO)

2017
December - NCO letter, 'we are acting on behalf of Shop Direct'

2018
January - Very statement
March - NCO letter, Notice of Sums of Arrears under CCA 1974
March - NCO letter, Total outstanding letter
March - NCO letter, Confirmation of the following payment arrangement (£1)
May - NCO letter - Concerns regarding overdue account
June - Very statement
July - Statement received along with arrears letter and fact sheet
September - Credit limit has been reduced to £850.

So Very have reduced my credit limit, that's been my limit for months now! I haven't paid anything since 7th July and they currently aren't chasing me.

[The Tech Clerk]

a lot fd credit cards have done that saying folowing policy of regulator also suggesting pay extra each month to clear quicker

[Still Waving]

The first thing some do when they see you are struggling is put up your interest rate as well as reduce your limit.

[Roger]

The first thing some do when they see you are struggling is put up your interest rate as well as reduce your limit.

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.

[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

[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! .

[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]

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 .
.

[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.