AMEX Excessive Interest Charges

[lachie8]

Where do I begin other than to say that I lost my business last year and could not afford to pay my credit cards on time resulting all being handed to various collection agencies.

 

So far, I have came to agreements with everyone except AMEX to have interest frozen and paying a sum of money to each to reduce the outstanding balances as I get on my feet again.

 

However, today I received a call from Brechin Tindall Oatts solicitors in Glasgow advising that I now owe them £6500 on an original debt of £5100!! and that AMEX are charging me interest at 48%!!!

 

I have asked that the interest is frozen but the stock answer is no go,and so I find myself wondering whether I can do anything to challenge this answer or do I go to Citizens Advice for help or someone.

 

If anyone has any suggestions I would be most grateful to hear.

[Monty2007]

Where do I begin other than to say that I lost my business last year and could not afford to pay my credit cards on time resulting all being handed to various collection agencies.

 

So far, I have came to agreements with everyone except AMEX to have interest frozen and paying a sum of money to each to reduce the outstanding balances as I get on my feet again.

 

However, today I received a call from Brechin Tindall Oatts solicitors in Glasgow advising that I now owe them £6500 on an original debt of £5100!! and that AMEX are charging me interest at 48%!!!

 

I have asked that the interest is frozen but the stock answer is no go,and so I find myself wondering whether I can do anything to challenge this answer or do I go to Citizens Advice for help or someone.

 

If anyone has any suggestions I would be most grateful to hear.

 

Dear lachie8

 

This seems a bit steep!

 

When was the account opened?

 

Which DCA's have you been through?

 

When did it get passed to BTO?

 

Can you post up the agreement and default notice minus all personal details and you will then get more help as to the APR, agreement enforcability etc.

 

Regards

 

Monty

[lachie8]

Hi Monty,

 

Thanks for your reply.

 

I have not been through any DCA'S,AMEX put me straight to these Solicitors.

 

My account was opened in August 2006 as I replaced a previous account,unfortunately I have no paperwork whatsoever in relation to agreements,APR etc.

 

In short,I have been a bit 'thick' with this debt and the others and really do not know how to fight back now.

 

Debt was passed to BTO in September 2009 and I have been paying them £100 a month,what a waste of money this has been.

 

If you could give me any pointers,it would be most appreciated,as I am trying to learn how this great site works as the advice I have gleened so far has been invaluable.

 

rEGARDS,

 

lACHIE

[Monty2007]

Dear Lachie8

 

Sorry, I thought in post 1 you had been through a few collection agencies before it was passed to Amex:

 

Where do I begin other than to say that I lost my business last year and could not afford to pay my credit cards on time resulting all being handed to various collection agencies.

 

Did you recieve a DN from Amex?

 

If you have no documentation then you need to send a letter to Amex and request a copy of your agreement under S78(1) of the CCA 1974. You should also request all documentation that they hold, this is done using a Subject Access Request under the Data Protection Act.

 

You will find the letters in the templates section. The S78 request costs £1 and the SAR £10. Send both by guaranteed next day delivery. I suggest that you keep all documents, they will be important if this goes further.

 

What have the Amex sols sent to you since you first had contact?

[lachie8]

Hi Monty,

 

They first actually wrote to me on 21st July,2009 advising they had been instructed by AMEX to collect outstanding sum of £5167.94, I then contacted them and agreed to pay £100 per month unaware that they were still charging interest on this sum which is now £6k+!!!

 

That is all I have had from them other than a letter confirming that AMEX would not freeze the interest on the account,after I had written requesting them to do so.

 

Will send off SAR tonight as suggested,thanks so much for your help.

 

Is this normal for AMEX to act this way from your experience? Surely,got to be a law against this arrogance?

 

Lachie

[Alphageek]

Hi Lachie, have you been moving house a lot recently. Amex mostly use a DCA (or 3) before setting their pet solicitors on to you so you should really have a file of letters from 1 or more of them.

 

When you get a reply to the DSAR, make sure you examine it well to see where and to whom this 'debt' has been passed around to.

 

Anyway, keep us updated.

[lachie8]

Hi Alphageek,

 

Not moved in 17 years,must be real popular with them for some reason.

 

I am a muppet when trying to negotiate this site today,trying to find template letters,any clues?

 

Lachie

[postggj]

How Can Ammex Be Charging 48% Apr

 

Even My Cap 1 Card Was 34%

 

What Ammex Card Did You Have

 

The Normal Clear The Balance Each Month, Or The Normal One

 

I Think They Call It The Blue Card But Dont Quote Me On That

[Alphageek]

Follow this link; http://www.consumerforums.com/resources/templates-library/48-bank-templates/110--data-protection-act-1998-subject-access-request

[lachie8]

Hi postggj,

 

The card I had was the green one, I was informed by the solicitors today that in my agreement that it states that interest is charged at 48% for defaulted cards,their words not mine.

 

I will get the SAR off tomorrow and then see where I go from there,but it appears there is nothing I can do at the moment about these interest payments at present.Other than to throw myself at their mercy!! Ha! Ha!

 

Lachie

[postggj]

So They Are Saying 48% For Defaulted Cards

 

You Realy Need To Get Hold Of The T&c For The Card

 

When You Took The Card Out, not The Current Ones

Me Thinks They Are Pulling Your Chain

[lachie8]

Me too!! I need to get to the bottom of this asap,thanks for the link by the way,for some reason or another I could not access site.

 

Lachie

[the_shadow]

Hi postggj,

 

The card I had was the green one, I was informed by the solicitors today that in my agreement that it states that interest is charged at 48% for defaulted cards,their words not mine.

 

I will get the SAR off tomorrow and then see where I go from there,but it appears there is nothing I can do at the moment about these interest payments at present.Other than to throw myself at their mercy!! Ha! Ha!

 

Lachie

 

The Green card is normally a charge card or a corporate charge card, credit cards from amex tend to be blue or silver I believe.

 

Is this for a charge card or credit card?

 

S.

[lachie8]

Shadow,

 

Chargecard,I had to clear balance in full each month. Does this make a major difference do you happen to know?

 

I think in my panic I have led everyone to believe this was a creditcard and must APOLOGISE for mis-leading those kind enough to try and help me earlier.

 

Lachie

[postggj]

follow my advice in post 11

[Monty2007]

Shadow,

 

Chargecard,I had to clear balance in full each month. Does this make a major difference do you happen to know?

 

I think in my panic I have led everyone to believe this was a creditcard and must APOLOGISE for mis-leading those kind enough to try and help me earlier.

 

Lachie

 

It does make a substantial difference since the chargecard does not come under the CCA. Hence why you did not get a default notice.

 

You should still submit a SAR though.

 

I am confused as to why they spat you to BTO though, typically Amex use RMA Resolve/NCO Europe initially to secure a payment plan?

[the_shadow]

Shadow,

 

Chargecard,I had to clear balance in full each month. Does this make a major difference do you happen to know?

 

I think in my panic I have led everyone to believe this was a creditcard and must APOLOGISE for mis-leading those kind enough to try and help me earlier.

 

Lachie

 

Hi Lachie,

 

No problem just means the CCA1974 do not apply, as Postggj says, you DO need to see the chargecard terms, was this done through a company or your own account?

 

Did you ever receive the chargecard terms and conditions when you got the card?

 

S.

[lachie8]

Thanks People, I will get information and let you know how things go.

 

Lachie

 

p.s. Sorry fagain for the confusion,my head is stuck where the sun does not shine right now!!

[lachie8]

Hi Shadow,

 

Through my name but company paid for it, do not remember seeing T & C's it was so long ago, I will ask them for a copy of same with SAR.

 

It appears though that I can do nothing with them if not covered by CCA so back to the drawing board as what to do with them. Run possibly!!

 

Lachie

[Monty2007]

Dear lachie

You mentioned earlier that:

"My account was opened in August 2006 as I replaced a previous account,unfortunately I have no paperwork whatsoever in relation to agreements,APR etc."

Can you also confirm if the card swap you mentioned back in 2006 was to replace a chargecard or a credit card? did they give a reason or was it a simple upgrade of some sort?

You should also take a look at your credit file (send £2 to Experian) and see if you have been defaulted (likely). Then when you get your SAR response with the T&C's their ability to charge interest in relation to default will be more clear.