A New Credit Card Offered To Pay Off Your Debt!!!!

[harrassed senior]

Balance Transfer Programme

 

I have an old account which is nearly Statute Barred. I have today been contacted by letter from the above DCA acting on this account which has been passed to them from Link Financial.

 

Have a read it makes for a fun read - will we all fall for it I DON'T THINK SO:grin::grin:

[mr.ton]

Which DCA is offering this nonsense exactly?

[Nottsdave]

Wow, I cant wait to get signed up for this its sounds great

[babybear39]

Do they think we're that stupid

[harrassed senior]

Balance Transfer Programme

 

they say ....the Account referenced above has currently been placed with us by Link Financial Limite for collection. However, we are a different kind of collection company; We want to work with you etc.....

[DonkeyB]

Against OFT guidelines and just about anything else, to encourage you to take out one debt to satisfy another! If you miss a payment, I guess the 18.9% APR kicks in. What a loathesome trick.

[42man]

And a great chance for them to get a copy of an enforceable agreement too !!!

[42man]

Good point Donkey......this should be against the OFT's rules....I think an email to the OFT might be worthwhile....

[42man]

Interesting as it points to Raphaels Bank....who are a leader in providing pre paid credit cards.....you get to put your already 'interest loaded' credit onto MORE interest !!! and they might give you £25 extra on your card......i'd certainly steer well clear....

[DonkeyB]

Here we are:

 

CSA Code of Practice

 

4. Debt Collection & Default Guidelines

 

In attempting to carry out collection in default of payment, members of the Association should:

I) Not pressurise debtors to sell property or to raise funds by further borrowing.

 

 

OFT Guidelines

 

Physical/psychological harassment

2.6

Examples of unfair practices are as follows:

b.

pressurising debtors to sell property, to raise funds by further borrowing or to extend their borrowing

 

So Link Financial are encouraging this, are they? What a good way to get a brand spanking new enforceable CCA!

[MARTIN3030]

R Raphael & Sons plc

 

 

09/10/2007

 

page display as pages

 

R Raphael & Sons plc has been a private bank since 1787. The Raphael family sold the Bank in 1983 and it is now owned by Lenlyn Holdings.

[Bookworm]

Oh my.

 

to encourage you to take out one debt to satisfy another

I don't think it does, actually. You can see that they say:

Once you have paid instalments totaling the Total Payment to Qualify amount:

¨ You will receive a Special Credit to reduce your balance.

¨ Apply for the Rise Visa® credit card and sign the Credit Agreement.

¨ The remainder of your balance will be transferred to your Rise Visa® at 0% APR.

In other words, first pay off the debt, then you can apply for the credit card (and may well get turned down, I should think).

 

Lots of hot air to get people to pay the money no questions asked and get nothing much in return wrapped up as a great once in a lifetime offer. I wonder if that is what we were reading about the debt industry having to try different ways to get people to pay up?

[MrMT]

That was my thoughts DonkeyB. How do they get their license on a business model based on wrongdoing?

[42man]

Good point points Bookie..also they are something to do with Compucredit who issue the Monument Visa card....

 

CompuCredit - For Investors - News Release

[DonkeyB]

But "the remainder of the balance will be transferred"... it's a new loan!

[count orlok]

the're taking the rise out of you

[DonkeyB]

On reflection, it looks like they get you to pay enough to make them a profit on what they've paid for the debt, then convert the rest to a loan that is more easily recoverable. I can smell it from here - even my cat's just fainted.

[MARTIN3030]

From Sunday times rich list 2008;

 

 

RESULTS FOR 2008

Ranking: 1355=

Worth: £55m

Source of wealth: Foreign exchange

The Tejani family, led by Firoz, 63, is a big player in the foreign exchange and currency changing business. Its main firm, Lenlyn Holdings, has £36.4m of net assets and is worth £50m. With other assets and past salaries, Tejani and his family are worth £55m. They are generous benefactors to charity.

[42man]

I've emailed the OFT...

[Bookworm]

It would be, except that "Once you have paid instalments totaling the Total Payment to Qualify amount" reads to me like another smoke and mirrors exercise, and the "total payment to qualify" is likely to be 100% of the debt. So: pay the debt in full, then apply for credit card, subject to usual credit check, bla bla bla, if you have behaved and paid off the total debt in full and on time, then we'll consider giving you a credit card. If there is no "remainder of the balance", weeellllll... sorry, but your account behaviour didn't justify us advancing you further credit, etc...

 

Meanwhile, you have paid the debt or part of it, created a new contractual relationship with them, making a CCA request pointless, and effectively given yourself hands and feet tied to them. Oh, and re-started the 6 yrs clock ticking.

 

The danger is that a lot of people with a bad credit record will see this as a way to repair their credit at a fairly reasonable rate (compared to Vanquis and Cap1) whilst paying their debts and will fall in the trap.

Edited March 19, 2009 by Bookworm
added stuff.

[harrassed senior]

Thanks 42 man - I was just going to post and ask if, as the recipient of their letter I should be the one to make that contact - glad you did it for me!! This is very interesting, especially as this alleged debt is almost statute barred!!

[42man]

I would urge you to send this (or a copy) to the OFT.....I think there was another company a while back called Black and White Loans who were offering loans on the back of Arrows Debts....which WERE statute barred....

[harrassed senior]

OK will do - I will get the dates sorted and then just send a brief covering letter with copies of the letter I received.

[lickthewallfatboy]

this is a dirty low down move to head people like us who are ringing the warning bells to others,off at the pass

 

lots are gonna be sucked in by this crap

[DonkeyB]

Could be another one for BBC's Watchdog - copy them in, harrassed senior!