Thread: Father v Egg (Visa & Loan) - Please advise on next stage - all letters have been uploaded to view. Thanks

Hi all

I've been in the process over the last 6 months to try and help my father with the situation he is in with his Visa Cards and Loans.

He currently has Visa card debt with Egg & Mint along with a Loan (with PPI) through Egg. (I have successfully managed to get MBNA to clear his balance on their Visa card. A "Partial Settlement" of £2350 against a £4700 debt. I have it in writing that MBNA will not take any further action to recoup the remaining debt nor will they sell the debt onto a debt collection Agency. They will however inform the Credit Reference Agency of the Partial Settlement and this will be on file for 6 years - this does not bother my father. I also stipulated on the cheque and by letter that if the cheque was "cashed", MBNA are accepting that this is final payment and no action can be taken to recoup the remaining debt or sell this debt on).

However, I am struggling with my fathers debt with Egg.

Please find below letters which we have sent by recorded delivery along with letters from Egg (one from a Debt Recovery Agency).

Having read a few threads I understand his loan may be void or illegal as he has only received one part of the aggreement which he signed. He received two A4 photocopies with one having only a hand written account number on it - it has not been signed. (Please advise on that).

Also, We had offered £1700 to clear his balance with Egg, but they have now terminated his account and threaten legal action.

I'm unsure what the next stage should be.

Is it advisable to go to court as he can only afford around £20 per month to pay towards his Visa Card and £20 against his Egg loan.

I am also in contact with Egg as he paid around £1300 for PPI on his Egg loan. He is self employed and I understand he should not have been offered this. I have threaten Egg with the fos which made them reply in 3 days. We are now awaiting a further response from Egg.

Many, many thanks in advance.

C

Date: Monday 15th December 2008.
Egg Account: XXXXXXXXXXXXXXXX

without prejudice.
Dear Sir

With reference to my previous correspondence, I am currently now in a position to make a “Full and final” payment on the above account which at present has an outstanding balance of approximately £4,379.00.

I can confirm again that I am unable to offer to pay the money which I owe in full.
However, I can raise £1,250.00 and I want to offer this an ex-gratia payment in full and final settlement of the account.

I fully believe that it is in your best interest to accept this offer as my current financial situation is unlikely to change due to lack of work, and the likelihood of early retirement next year. I have already informed you of my current income and expenditure with details of my current pro-rata repayments to my other creditors.
As you will be aware in previous correspondence to you, I would only be able to afford a repayment of £18 per month in respect of this debt for the foreseeable future. I therefore reiterate the above offer and hope that you will accept this as a full and final settlement.
I can see from my interest charges from December 2007 until October 2008 that they have totalled approximately £878.00. I have had this account from 2003 and believe my interest charges alone over this term are approximately £3,500.00
I have been in contact with Citizens Advise, along with National Debtline, who both agree that the amount I have offered is acceptable.

Important: This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that I will be released from any liability.

I also request that, if accepted, you will make an entry on a credit reference agency file relating to the above account as "Satisfied" in full.

Payment can be made within two weeks of receiving your written agreement of this offer and will be made by a third party into the relevant account. I do not wish for any correspondence regarding this letter to be made by telephone.

This offer is a limited offer and if I do not hear from you within the next 14 days, I will withdraw the offer and use these funds towards paying my other creditors.

I look forward to your considered reply.


Yours Faithfully.
XX XXXXXX

Egg Banking PLC
Customer Response Team
Pride Park
Riverside Road
Derby
De99 3GG
Date: Tuesday 3rd March 2009.
Egg Account: XXXXXXXXXXXXXXXX
Dear Sir

With reference to your letter dated 23rd February 2009, I would like to bring to your attention the offer that I made of £1250.00 to clear my Egg balance was for my Visa account only
(XXXXXXXXXXXXXXXX), and not my Egg Visa & Egg loan account (XXXXXXXX).
I can confirm that I am still unable to pay off my current outstanding Egg Visa balance in full and notice that you are willing to accept £3,800.00 to clear my Visa Egg account, instead of £4,714.03. I am grateful that you are willing to accept a lower offer to clear my debt, however I am not in a position to pay this amount and can not see that my circumstances will change in the near future.

Having had a recent response from MBNA to clear another Visa debt by means of “Partial Settlement”, I am now in slightly better position than 4 months ago and I am now prepared to offer £1700.00 to clear my Egg Visa account (XXXXXXXXXXXXXXXX).

I hope you are willing to accept this final offer as the 3rd party who is offering to pay this debt is not prepared to offer more.

Please note that I understand “Partial Settlement” to mean that any remaining debt owed will not be sold to a debt collection/recovery agency and only used as reference to any company looking at my debt file. I am not willing to offer any amount if I believe that in the future my debt could be sold to a debt collection agency. I understand that my debt reference file will show that I have “partially” paid my debt.

If you accept my offer of £1700.00 by means of “full & final payment” or “partial settlement”, I would require written confirmation that no debt will be sold to a 3rd party in the future (ie: a debt collection/recovery agency).

I fully believe that it is in your best interest to accept this final offer as my current financial situation is unlikely to change due to lack of work, and the likelihood of early retirement next year. I have already informed you of my current income and expenditure with details of my current pro-rata repayments to my other creditors.
As you will be aware in previous correspondence to you, I would only be able to afford a repayment of £18 per month in respect of this debt for the foreseeable future. I therefore reiterate the above offer and hope that you will accept this as final settlement.
Please be aware that all correspondence to you have been sent by “Recorded Delivery”.
I look forward to your reply.
Yours Sincerely
XX XXXXXX

Well, guys......thanks for reading, and as said previously, I would be extremely grateful (as too would my father) if you can guide me in the right direction.....

What's the next step?

Cheers
C

....any help out there please?

C

I would certainly be complaining to the fos about the PPI as it is likely that this was mis-sold.

Many people would at this point say the account is in dispute and refuse to pay any more until the dispute is resolved. I note you have already received a default notice so they cannot hurt your credit file any more that way.

We are challenging one of these agreements here:
http://www.consumeractiongroup.co.uk...riend-egg.html

We are also challenging our Egg Card account for various reasons. The reasons are here:
http://www.consumeractiongroup.co.uk...ents-what.html

Our Egg Card case is here:
http://www.consumeractiongroup.co.uk...enges-egg.html

In the meantime you can of course agree to pay an affordable payment every month on account - that is what the judge would order anyway if they took you to court and defeated you.

That might keep them off your backs while you work out what you are going to do next.

Many thanks for reading the thread. We've sent a letter off offering a lower amount. If this is unacceptable, I've stated that my father can only afford around £25 per month.......waiting for a reply now.

c

The normal process will be to complete an income and expenditure form (which they will send you) and this should indicate how much he can afford per month.