Is it worth asking if a creditor will accept a full and final settlement?

[jools153]

HI FS

I missed a payment to cccs because I was struggling last month. However I have since made that payment up so I am back up to date.

Creation have added £80 in interest and charges this month. They phoned me today and asked me what was going on with the account. I told them that I was concerned that my credit limit was £750 - the original debt was for £950 and now it is in excess of £1800 which means that £900 of it at least is interest, insurance and charges. The guy on the phone said that the interest had been stopped and I told him I knew this because I had to write to them 3 times a 5 years ago to get it stopped!!!! He said If I could get some money together they could offer me a discount on the balance and I said that it was most unlikely! They haven't responded to the SAR yet but they still have plenty of time. I am guessing that they have looked at my account following my request and realised that if I claim back the insurance and charges there will be no debt left and thats why they have rung. They have NEVER rung me before in over 7 years!!!

I have had a reply back from Moorcroft following my CCA request. They have said that I need to write to Egg for that request to be actioned and returned my cheque for £1. I am writing to them today.

Other than that I haven't had any replies from any of the other creditors. Intrum justitia have phoned me several times asking for another payment but I know they don't have a CCA. Has it been enough time now to allow them, they were posted first class recorded on the 10th November?

THanks

[jools153]

OMG

the guy from creation just phoned me up again. He said that he has checked iwth the cccs and that they confirm they will be making payments again each month.

He said that he has 'managed' to get the interest reduced each year to 6% instead of 25% per annum!!!! Very generous! I asked him why they were charging interest and he said because they can and he can't override it - is this true??

I work that out to mean that I will be paying them £10.29 a month and they will be charging me £9 interest so I will only be paying off £1.29 a month - thats rediculous. I am going to ring cccs about that.

I asked this guy if they had my letter asking for all the information on me SAR and he said that was being dealt with by the data protection office. He said 'I think you have been quite clever because you have paid the few pounds fee and that will give you some information about what you have paid to us and what charges and interest etc there are, but whatever you do don't ask for all your back statements because they have to come from another department and they cost £3 per statement, and you have had your account with us for 12 years' IS THIS TRUE? I thought that the £10 I sent for the SAR was going to give me all the information i needed to claim back my insurance and unfair charges. Surely I won't have to pay for ever statement from the last 12 years? Are they trying to frighten me?

This really is strange behaviour from this company

[jools153]

I spoke with CCCS and they said that its a lie about charging £3 for each statement. That they have to provide it all under the £10 fee that I sent for the SAR. This guy was very strange - Now that I have had a chance to reflect on the conversations I had with him this morning I think he was trying to manipulate me into taking no further action with the SAR. He said that once I had the information there was not a lot I could do iwth it anyway - more torture than anything! I didn't say that I disagreed and that I intend to reclaim every penny of insurance payment and unfair charges back which probably means they will end up owing me money!

I am so cross that I have let them get away with this for so long. I have sent them a letter asking for the interest to be frozen today too. Not sure I will get much response but I hope that once all the charges are reclaimed it won't matter anyway.

[victoria_siempre]

Well done jools

 

But the past is another country; spilt milk and all that.

 

Onwards and upwards.

 

love

vic

[firstship]

Jools ...Hi.............Like wise same as Vic well done..............You have faced the questions and come up with the answers through CCCS and others,.............when the SAR has surfaced you can work out the PPI payments add interest etc(I will help you with this if required) and as with many of us it makes a huge reduction to the debt and I hope in your case it will be wiped out...............the £3 charge for statements as you have found out is rubbish...and let me confirm once you have the information there is a lot that can be done with it.Those companies you sent CCAs to the 12 days must be up so no reply send account in dispute letter..................all the very best....FS

[jools153]

THanks FS and Vic. I checked my online bank and only one of them has cashed the cheque. That is RMA but I have had nothing from them so I will send out an account in dispute letter tomorrow. I will give egg the 12 days from tomorrow because i sent them the letter today. Creation and Intrum I SAR'd so they both have quite a while to respond to me. CL finance have not responded to my CCA either so I will sent them an account in dispute notice too. What happens once I have sent the account in dispute letter?

[firstship]

Once the account is in dispute,there are a number of items the Creditor should not do...............Demand Payment....Charge Interest or add charges............pass the debt to a 3rd party ie DCA..............................................pass data to CRA................sell the debt...............and until the OC send a copy of the original signed agreement or a reconstituted version of the agreement,they should not carry out any of those items.....................Regarding Moorcroft and returning your CCA cheque you can demand that they send it to Egg as they Moorcroft sent out the demand and they represent Egg, and they should earn their money,however as the answer to the CCA is more important to you,send it to Egg,should Moorcroft send any further demanding letters,remind them they are in dispute and until such times as they or their client complies with your CCA request the OFT guidelines apply.........................FS

[jools153]

Hi today in the post i received 11 years worth of statements from creation. It has all the charges and ppi and a copy of the consumer credit agreement from 1998. They have enclosed a leaflet about their ppi but I haven't signed to say that I wanted to take it out on the agreement. I can't work out why that was even applied although I have not had a thorough look at all the statements and notes on the account as yet.

What is the next step in reclaiming the ppi and charges? I am keen to get on to them asap now that they have provided all the information. I am confident that I can get at least 3/4 of this debt wiped off on ppi alone! I will total it all up and let you know how much I estimate it. Also can I claim interest on this amount too?

[firstship]

I am surprised they have sent 11 years worth of statements,well done.............add up all the PPI payments, add the interest in place at the time of each payment then add 8%,and your reason for claiming back the PPI is it was sold as a part of the loan requirement,it was not made at all clear that I could have arranged my own insurance if I had required it................good luck lots of calculations but well worth it,probably wipe out most of the debt,they will no doubt fight you on this,do not give in,any questions at all we can help you..............FS

[jools153]

THanks for that. Is there a letter template that you know of I can use for the purposes of requesting back the ppi and interest? Also when you say add the interest plus 8% can you clarify what you mean by that. Do I add the interest applied to the whole statement for that month or work out what the interest would have been on the ppi? Sorry maths never my strong point!!! Thanks so much

[firstship]

your PPI payment + the interest for the amount that month ........take the interest at the bottom of the statement,example PPI payment £10 ....interest for that month 20%=£10 + £2 interest,total £12 then add 8%..............I am not aware of a PPI letter as there are quite a lot of reasons why PPI can be claimed back,I will draft one up..............FS

[jools153]

Hi thanks for that FS.

I have now looked at the paperwork properly. It says they have included a copy of the signed credit agreement but they haven't just three photocopied pages of terms and conditions not a bean with my name address or any signature on it. I know they did have this as I found the copy i requested a few years ago. I am wondering if they no longer have this. I still have my copy and it shows that I did not sign up for ppi or anything when I took the card out (shall I keep that up my sleeve?) I am thinking the reason they haven't included it is because they know that I can argue I never signed up for insurance.

Anyway. I have added up the total PPi and it is not as much as I thought. The total including interest is £660.80. It would appear the reason the debt has increased so much is that while I was with another company for my orignal DMP they continued to charge me full interest of 2.2% a month on the balance. This was crazy because I was paying about £20 a month off and they were adding at least £35 in interest some months. Anyway the ppi comes to £660.80.

[victoria_siempre]

Hi jools

 

One might keep one's armies up one's sleevies;" (shall I keep that up my sleeve?)".

 

£660.80. is incredibly low; are your sure you've applied compound monthly interest over the years since the PPI was mis-sold?

 

love

 

vic

[jools153]

Hi Vic. I added up all the totals of the ppi from the statements which was £598.68 from 1999 to 2005 (it was a percentage of each monthly balance they charged). I added 2.2% to that total and then added 8% is that right?

[victoria_siempre]

No jools

 

Say, the ppi was £10 a month and started in 1999. Apply 1.0022 to this and the 2nd month becomes 10.45 , 3rd month month 10.68 and so on. By the end of the first year that unlawful first month's ppi charge has cost you: 12.98.

 

Apply that principle over 11 years and that first month's payment alone has cost £298.09.

 

All that is just for the first month's payments! so from the first year's payments alone you arrive a figure of around £3,300.

 

And that is only for the first year's payments! there are subsequent year's payments.

 

Over 6 year's of payments I would guess the total to be around £12000. that is a guess. I've only done the calculation for the first year. I haven't added on the 8% either.

 

Hope this helps.

 

love vic

Edited December 2, 2010 by victoria_siempre
typo

[jools153]

omg ok I will have to spend a bit longer working that one out then lol! I will do that and then come back with a revised figure. Thanks Vic that is really helpful xx

[jools153]

Sorry just another quick question. So each months amount is different because its relative to teh balance. The first payment was about £1.20 but other months it was £20 odd so would I work out the 2.2% interest on £1.20 and then work out how that much cost over the years i was being charged interest and then do the same for subsequent months then add it all together and add 8% or do I add on the 8% when working out each individual one?

Sorry to sound so confused but I am really not very bright when it comes to things like this!

[victoria_siempre]

Hi jools

 

I'll happily provide a spreadsheet to do the calculations and post it on-site - there may be one already???? (site team).

 

Obviously one would need to enter start date, end date of payments; payment per month, and interest rate per month.

 

love

 

vic

[victoria_siempre]

Hi jools

 

Posts crossed.

 

Basically yes. I don't about the 8% but it will not be a problem to include that in the calculation once someone explains it.

 

x

 

v

[jools153]

ok yes that would be great. Basically here is a list of what I have paid in ppi

start date of it was June 1999 and the last day it was applied was March 2005. Interest stopped being added to the account in April 2004. I know that sounds confusing but basically they stopped the interest before stopping the ppi!

06/99 £1.85

07/99 £1.85

08/99 £1.70

09/1999 £1.84

10/99 £1.95

11/99 £1.83 and so it goes on until the last ppi was March 2005 and was £28.66 - you can see how it increased as the interest was being applied and I was only making small repayments!

A spreadsheet would be really helpful!

Thank you so much

[jools153]

oh and the interest rate per month was 2.2%

[victoria_siempre]

wilco jools

 

give me 24 hours

 

x

 

v

[jools153]

Brilliant thanks Vic xx

[firstship]

sorry lost the PPI template link will try again

[jools153]

Thanks FS - that will be really helpful once I work out how much I am going to claim. I am hoping it will be enough to wipe the debt! or at least half it. I know they won't do it straight away but hopefully persistance will be the key!