Any other options?

[lizzy40]

Was wondering if anyone would have any advise or other options?

 

Had an arrangement with a credit card company to make a monthly payment each month while in financial difficulties also my interest had been frozen for this duration.

 

I have now come to the end of arrangement but still in financial difficulites. Have sent another personal budget statement and asked to continue arrangement but they have replied saying they cant do this. The company concerned have stated they have two options, if in short term problems they will set up arrangement and suspend interest for six months which is what they have done with me. The second option is for long term problems which is to set up another arrangement the interest will be frozen but my account will have to be passed to collections department and account will go into default status. Anyone know what else I my be able to do don't want my account to be defaulted this will show on my credit file for 6 years, I think?

 

Any advise will be appreciated...

 

Lizzy

[tiglet]

I'm afraid that they can do this legally (morally is another question).

 

Do you think there are any charges on the account? If so, perhaps a SAR will give you the info and you can start reclaiming them, therefore reducing the debt.

[lizzy40]

Thanks for answering my thread Tiglet.

 

No there aren't any charges. Just thought there may have been a loop hole. Doesn't seem fair I'm doing all the right things by keeping them up to date and sticking to my monthly payments, I know they have to earn some money from me but the amount I can pay at present and the added interest payments will mean my balance wont reduce?

 

Looks like I may have to default!

 

Lizzy

[tiglet]

Have you sent off the CCA request to ensure they have a legal right to collect the debt?

 

Could be a good bargaining tool if they don't ...

[lizzy40]

What do you mean - to see if I have signed an agreement?

[tiglet]

No, to see if they have a signed, enforceable agreement

[lizzy40]

Whats a signed enforcement agreement?

 

My account hasn't been defaulted yet but will if I have to take the long term option they advised me of, as they have already helped me on a short term bases. The only way they can help me now is pass my account to collections dept and and set up payment agreement and freeze interest but on doing this my account will have to go into default?

 

Does that make sense?

[tiglet]

Well, this is what they are saying to you - but lizzy - do you really think they will tell you all of your options?

 

A CCA request is basically asking them to prove they have a legal right to collect the debt. It should include all of the prescribed terms as set down by the Consumer Credit Act 1974.

 

If they do not have a copy which meets the terms, they cannot enforce the debt by legal means. this is a good way to bargain with them to freeze interest etc.

[lizzy40]

Thanks Tiglet will ponder over this tonight and get back to you tomorrow thanks for your help...

 

Lizzy

[tiglet]

No problem Lizzie - always best to weigh up all of the options and decide what is best for your situation.

[lizzy40]

Not sure whether thats the right way to go as I'm not trying to avoid my debt and by going down that root I will be more or less saying I'm not paying and don't want to pay. If I did ask for a CCA request would my account be put on hold and would interest still be accumulating?

 

I'm so confused?

[tiglet]

I'm not advocating debt avoidance (and never would) - however, they are presenting you with limited options.

 

You have a legal right to ask for a copy of your CCA at anytime. If they cannot produce one, as I've said, you may be able to use that to negotiate them freezing your interest.

[lizzy40]

Yes Tiglet that does make sense I think I will send off for a CCA have nothing to lose?

 

Thanks Lizzy

[PrettyPaula]

dont forget the postal order for £1!