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Hi All,
Following on from my posts in Not Down And Out's 'Partial Settlement' thread - here are the details of my own situation and I'd be keen to get your views on events and what's likely to happen at the end of it all.
First thing I would like to say is that if I knew then what I know now (i.e. if I had found this forum) I probably wouldn't have taken some of the actions I have. I have broken some of the golden rules - but despite that I'm probably not in a bad place, all things considered.
The facts are:
I have a Cap 1 credit card account that I've had for 5 years - with no prior problems re. payments. In October, something happened (that I won't go into detail on as it doesn't add anything of relevance) but it meant I couldn't afford to make the payments on my card - and I stopped. Last payment made was October.
For the next few months, I ostriched. I received the statements and each month I've received their letters saying that my account was in arrears - but I've not done anything about it. At this point, I should say that prior to joining CAG in March (and more recently this forum), I previously knew nothing about CCA and unenforceability etc.
In early April I received a Default Notice saying that if I didn't pay the arrears by the 20th April the account would be registered as defaulted. I didn't pay the arrears - but I did call them on 22nd April (I know, I know, please don't flame me....).
During the call - several things happened. Firstly, the woman said that the account was actually scheduled to go to the next phase (i.e. default?) on their system on April 25th. I'm not sure if this has relevance in terms of the timing of my call and what happened next?
I agreed to pay (and did pay) £500 off my then balance over the phone. This represented circa 2 and a half months payments. The girl stated that as far as they were concerned, this meant that my account was no longer in default and I had bought about 2 months grace. The balance after this payment is £10,500.
After much discussion - I was adamant that I would not go on a DMP; I did however disclose my incomings and outgoings over the phone. From this conversation the girl said she concluded that I could not meet the payments under the account and that she was freezing the interest and payments. (I have since received a letter stating that as I am in financial difficulties the payments and interest under the account have been reduced to zero).
She then suggested that if I was able to pay a lump sum that they may accept a short settlement offer - but she was not in any way able to guide towards that amount should be. To cut a long story short, I called back later that day and offered £2,500. It was referred and they called back to say the offer was acceptable and I have until the 29th June to pay. I've received a letter from them stating the following
"... following your recent offer of settlement, we confirm your offer of £2500 has been accepted in partial settlement of your account. This offer is conditional upon your payment being received no later than 29th June. Upon receipt and clearance of the payment, we confirm your account will be closed and no further action will be taken to recover the remaining balance. A partial settlement will register with the credit reference agencies for 6 years which may affect your ability to obtain credit in the future.
Failure to make the specified payment by the due date above will result in your account being registered as a default. If this happens your account will be closed, the outstanding debt may be sold to a third party and a Default will register on your credit file for the next 6 years.
A restriction has been placed on your account and it will no longer be possible to reinstate the credit facility".
So...., my learned friends - that's where we stand. Any views, comments, advice?
TIA
Lakeside1
Following on from my posts in Not Down And Out's 'Partial Settlement' thread - here are the details of my own situation and I'd be keen to get your views on events and what's likely to happen at the end of it all.
First thing I would like to say is that if I knew then what I know now (i.e. if I had found this forum) I probably wouldn't have taken some of the actions I have. I have broken some of the golden rules - but despite that I'm probably not in a bad place, all things considered.
The facts are:
I have a Cap 1 credit card account that I've had for 5 years - with no prior problems re. payments. In October, something happened (that I won't go into detail on as it doesn't add anything of relevance) but it meant I couldn't afford to make the payments on my card - and I stopped. Last payment made was October.
For the next few months, I ostriched. I received the statements and each month I've received their letters saying that my account was in arrears - but I've not done anything about it. At this point, I should say that prior to joining CAG in March (and more recently this forum), I previously knew nothing about CCA and unenforceability etc.
In early April I received a Default Notice saying that if I didn't pay the arrears by the 20th April the account would be registered as defaulted. I didn't pay the arrears - but I did call them on 22nd April (I know, I know, please don't flame me....).
During the call - several things happened. Firstly, the woman said that the account was actually scheduled to go to the next phase (i.e. default?) on their system on April 25th. I'm not sure if this has relevance in terms of the timing of my call and what happened next?
I agreed to pay (and did pay) £500 off my then balance over the phone. This represented circa 2 and a half months payments. The girl stated that as far as they were concerned, this meant that my account was no longer in default and I had bought about 2 months grace. The balance after this payment is £10,500.
After much discussion - I was adamant that I would not go on a DMP; I did however disclose my incomings and outgoings over the phone. From this conversation the girl said she concluded that I could not meet the payments under the account and that she was freezing the interest and payments. (I have since received a letter stating that as I am in financial difficulties the payments and interest under the account have been reduced to zero).
She then suggested that if I was able to pay a lump sum that they may accept a short settlement offer - but she was not in any way able to guide towards that amount should be. To cut a long story short, I called back later that day and offered £2,500. It was referred and they called back to say the offer was acceptable and I have until the 29th June to pay. I've received a letter from them stating the following
"... following your recent offer of settlement, we confirm your offer of £2500 has been accepted in partial settlement of your account. This offer is conditional upon your payment being received no later than 29th June. Upon receipt and clearance of the payment, we confirm your account will be closed and no further action will be taken to recover the remaining balance. A partial settlement will register with the credit reference agencies for 6 years which may affect your ability to obtain credit in the future.
Failure to make the specified payment by the due date above will result in your account being registered as a default. If this happens your account will be closed, the outstanding debt may be sold to a third party and a Default will register on your credit file for the next 6 years.
A restriction has been placed on your account and it will no longer be possible to reinstate the credit facility".
So...., my learned friends - that's where we stand. Any views, comments, advice?
TIA
Lakeside1
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