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

[harrassed senior]

I will e-mail this to Watchdog tonight, in the meantime I went onto OFT website and got a bit confused - can someone please let me have the address to which this should be sent - TA!

[harrassed senior]

OK Info and complaint sent online to Watchdog - will of course let you know when I hear anything.

Edited March 19, 2009 by harrassed senior
typo

[ScarletPimpernel]

Interestingly, the company behind this is not Raphaels/Lenlyn, though they provide the card - but a US company called JC International Acquisition Corporation.

 

Balance Transfer Programme is a 'trading style' of JCIAC, who do hold a consumer credit licence (but probably shouldn't). Their address for correspondence is the same as CompuCredit's - or rather, of their lawyer. Delving a little deeper, it turns out that CompuCredit UK shares an address with JCIAC, and has a sister company called CompuCredit International Acquisition Corporation, with whom JCIAC shares some directors.

 

Compucredit gives its correspondence address as Atlanta, Georgia, though it's principal place of business is shown as Crawley (they obviously like high-crime areas).

 

I'm amazed (not really) that the OFT gives consumer credit licences to companies that aren't UK registered.

 

Given all the 'acquisition' stuff in the company names, I wonder if these debts are being bought prior to the wondrous offer being made?

[DonkeyB]

Pimpernel, you are a genius. Digging further... this all rings bells with another thread somewhere. On the trail...

[rory32]

in the meantime I went onto OFT website and got a bit confused - can someone please let me have the address to which this should be sent - TA!

Enquiries and Reporting Centre

Office of Fair Trading

Fleetbank House

2-6 Salisbury Square

London

EC4Y 8JX.

[DonkeyB]

I was thinking of this:

 

Daughter in CCJ Littlewoods debt threat | Abbey fraud | National Savings blunder | This is Money

 

and the CAG thread which linked it

 

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/185416-phoenix-bryan-carter-read.html

 

Bryan Carter and Phoenix Recoveries UK Sarl. The issue again is that there was a query as to why a foreign company (even with a 'UK' in the title) was able to obtain a licence in the UK just by having an associated office here.

[Kraken1]

Would this really class as 'pressuring' though? It would need to in order to fall foul of the OFT.

[palomino]

There is a lot of criticism here, a lot of which is unwarranted in my view.

 

1. There is no further interest added to the debt.

2. When you reach the Total Points you can apply for a card. There is no compulsion about it.

3. If you do obtain a card you given a special credit - admittedly probably tiny (who knows). Your balance is transferred to a credit card at 0% interest.

 

 

This sounds like a reasonable deal for those who (a) want to pay the debt off, and (b) will never use the credit card.

 

As ever, the devil is in the detail -

- presumably you can refuse the card and continue making the previously normal payments

- what repayments are required on the credit card? If the same as the previous loan repayments then all well and good, but ...

 

Could be good, could be bad but need some more info.

Edited March 20, 2009 by palomino
Missed word

[mr.ton]

Hows about the payments are not made in the 1st place without county court authority 1st eh?

[Nottsdave]

well said Mr Ton

 

 

Notts

[harrassed senior]

In my 'personalised' offer here are the details:

 

Programme Balance (original balance) £1935.26

Total Payment to Qualify £480.00

Minimum Monthly Payments £40.00 for 12 months

Once you have paid instalment totalling £480 you will receive a debit reduction credit of £581.26 to substantially reduce your debt. ALSO, PROVIDED WE HAVE RECEIVED YOUR SIGNED CREDIT AGREEMENT the remainder of your balance £874.00 is transferred to your new Rise Visa Credit Card, ie:

Less Debt Reduction Credit £581.26

Balance transfer to credit card £874.00

Total amount to pay £1354.00

Rise Visa - Initial Credit Limit £975.00

Inital available Credit £101.00

You continue to make the minimum monthly payments as outlined in your Rise Visa statement, on time, each. You can then use your ne RVCC to make purchases etc, etc.

[ScarletPimpernel]

It seems to me that this is an ideal way for a creditor to sell off an unenforceable debt, e.g. where there's no agreement, or it's about to become statute-barred.

 

We know that many of these 'turkey' debts sell for 2p-3p in the pound; let's be generous and say that the price is 10% of face value. The creditor writes it off against tax and the buyer has two options - try to collect in the traditional way, which could cost more than the price paid, and might not be collected at all, or try to rope the debtor into this new scheme, which has the benefit of returning at least more than the price of the debt before the punter has even applied for his shiny new card - and shiny new enforceable agreement.

 

Of course, if the punter doesn't go for it, the debt buyer can just go down the traditional bullsh1t and threats route.

 

Or maybe I'm just a cynic...

[sosumi]

It seems to me that this is an ideal way for a creditor to sell off an unenforceable debt, e.g. where there's no agreement, or it's about to become statute-barred.

 

We know that many of these 'turkey' debts sell for 2p-3p in the pound; let's be generous and say that the price is 10% of face value. The creditor writes it off against tax and the buyer has two options - try to collect in the traditional way, which could cost more than the price paid, and might not be collected at all, or try to rope the debtor into this new scheme, which has the benefit of returning at least more than the price of the debt before the punter has even applied for his shiny new card - and shiny new enforceable agreement.

 

Of course, if the punter doesn't go for it, the debt buyer can just go down the traditional bullsh1t and threats route.

 

Or maybe I'm just a cynic...

Think you're right SP.

[palomino]

SP, yes of course people can go down the route you specify - and I suspect that most will probably do so.

 

However it is an acknowledged principle on CAG that we do not advocate evading responsibility for our debts. In this context there may be some who wish to 'do it properly' and for whom this might be an acceptable solution.

 

In essence, I cannot see anything dangerous for those who want to follow this route. Carefully.

You pay off the debt with a significant reduction, and then (optionally) have a credit card for which you have not been credit checked. If this is all done responsibly then there will be no problem.

 

Not everyone wants to go this route and not everyone has to. There is no compulsion.

[rory32]

1. There is no further interest added to the debt.

Perhaps that's because the DCA have no legal or contractual right to add interest to the account.

 

2. When you reach the Total Points you can apply for a card. There is no compulsion about it.

And of course what everyone needs when they are struggling with debt is a shiny new credit card

 

3. If you do obtain a card you given a special credit - admittedly probably tiny (who knows). Your balance is transferred to a credit card at 0% interest.

0% for the life of the balance transfered. Obviously there is always the temptation to use the card for any credit you have which no doubt will be charged interest on and hey ho the person is back in debt again now paying interest on that debt. Great idea.

[lickthewallfatboy]

all credit cards should be cut up and binned

 

they are a major factor in why people in this country are up against it right now

 

I will never have another.....not that they would give me one anyway!!

[Kraken1]

sometimes the use of a credit card can give you valuable legal protection that you might not ordinarily get. In this respect it is like a chainsaw, a really useful tool but one that needs using with care and which should not be abused.

[sosumi]

sometimes the use of a credit card can give you valuable legal protection that you might not ordinarily get. In this respect it is like a chainsaw, a really useful tool but one that needs using with care and which should not be abused.

You can get pre-pay 'credit' cards to do that now. You pay the money in then use it just as you would a credit card - except it isn't credit. You only have what you've put in there, which makes it great for budgeting. We pay £4.95 a month for ours, so there are no charges for transactions.

We now swear by it.

[rory32]

You can get pre-pay 'credit' cards to do that now. You pay the money in then use it just as you would a credit card - except it isn't credit. You only have what you've put in there, which makes it great for budgeting. We pay £4.95 a month for ours, so there are no charges for transactions.

We now swear by it.

And if that's the one that I think it is, they also do a deal whereby they record the fact that you have paid the £4.95 a month with the CRA's - so helping to improve your credit rating if you want, in the same way as you would with a credit card but without the ability to run up debt.

[sosumi]

And if that's the one that I think it is, they also do a deal whereby they record the fact that you have paid the £4.95 a month with the CRA's - so helping to improve your credit rating if you want, in the same way as you would with a credit card but without the ability to run up debt.

Yes that's the one Rory

We might do that at some point when we feel less battered and bruised. I think it's a really good idea for the 'road to recovery'

We tried arranging our budgeted cash in pots when we started, but neither of us were good at keeping track, but this is brilliant. Online statements, everything

[lickthewallfatboy]

which card is that?

[rory32]

which card is that?

Cashplus - it's a mastercard.

[babybear39]

Cashplus - it's a mastercard.

 

I keep getting bombarded with offers for those and similar..

[SURFBOY]

I have had a cash plus mastercard for 2 years now, i find it realy usefull.

[lickthewallfatboy]

cheers rory