Red Castle / Gothia - 4 year old debt (Advice needed)

[jimjams]

Morning all,

 

Have used the forum before and always very helpful. A long time ago I managed to get myself in a bit of financial bother, but thankfully over the last 3 years I have cleaned up most of the mess and my credit report by April next year will be fully repaired - hallalujah! Anyway, still I get a little bit of fallout of which some is statute barred but in this case it's genuine and I do owe the money and plan to pay it, however, I don't want to pay back what I do not owe.

 

The original finance agreement was with Dell (CIT) back in 2007 (just over 4 years ago)

 

Total Cost of item was £650 inc VAT

Paid a 10% deposit of £65

Total loan value £585

APR @ 29.9%

 

In addition to the above, I saw some small print which says I am also paying for PPI which adds on about £3 extra month.

 

I stopped paying this loan after 3 payments and nothing was heard, on my credit file it was marked as Satisfied with about 6 late payments in the history.

 

NOW - suddenly I have heard from Red Castle and am going to accept I owe them some money but don't feel I should be paying the interest or the PPI.

 

Red Castle are asking for £870 which seems steep! This takes into account interest and the PPI, what are my next steps? I am thinking of offering them a 50% settlement of the Total Loan Value (£585)... any suggestions?

 

I would like to add that I do have the CCA from them, and 4 days after receiving it I am already being chased with failure to pay letters! grrr. Any help would be very much appreciated.

[citizenB]

Hmm, agreed.. pay only what you genuinely owe.

 

I guess you can do one of two things.

 

1: Start a reclaim for all the charges and PPI and associated interest and then pay any balance.

 

2: Work out what the charges and PPI, along with associated interest amounts to and then make them the full and final offer, adivising them, if they dont accept then you will be making the reclaim and asking for 8% stat interest on the top..

 

You would need to word your letter very carefully and be specific. The full and final you are offering is dependant upon the following..

 

That it is a Full and final offer and that you will be requiring any adverse data removed from your credit files and that you require their written assurance that any balance will not be passed on to another DCA.

[jimjams]

thanks, CitizenB. Sorry to ask, but how do I go about reclaiming PPI and Charges? - The total balance they are asking for is that from 2007, so its the total cost of credit which includes interest and PPI, no charges have been included from what I can see.

 

Is there a default template I can use for guidance on this?

[citizenB]

thanks, CitizenB. Sorry to ask, but how do I go about reclaiming PPI and Charges? - The total balance they are asking for is that from 2007, so its the total cost of credit which includes interest and PPI, no charges have been included from what I can see.

 

Is there a default template I can use for guidance on this?

 

Go to the FOS website and download the Complaint form from the PPI section. Complete that with your complaint.

 

Then if you have all your statements .. complete the spreadsheet below. You just need to enter the APR at the top of the sheet. Then in the white spaces below.. you enter the date, the amount of the premium and what the amount is for eg.. PPI premium. The spreadsheet then calculates the rest for you.

 

[ATTACH]30373[/ATTACH]

 

If you havent got your statements, you will need to send a subject access request to the company which will cost you £10.00. You can find a draft SAR letter in the CAG library which is linked at the top of the screen.

[jimjams]

Hi, I have written this letter, any advice welcome before I send it out

 

 

Dear Sir/Madam,

 

Thank you, I received your letter dated 12/09/11 providing me with my CCA for Dell Financial (CIT).

I can confirm that I am unable to offer to pay the money which you advise I owe in full. However, I can raise £xxx.xx (50% of amount borrowed) and I want to offer this as an ex−gratia payment in full and final settlement of the account. This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that I will be released for any liability and no entries will be made to my credit file.

Please take into consideration that the total amount you are requesting £xxx.xx (amount borrowed including interest and PPI) includes interest based at 29.9% which within also includes interest on PPI set over the full financial period, as the PPI was cancelled - clearly stated in the contract then this would no longer be applicable.

If not accepted then I will be making a reclaim for all the charges, PPI and any associated interest added to the account, plus 8% statutory interest.

Payment can be made within 2 weeks of receiving your written agreement of this offer and method of payment.

 

I look forward to receiving your reply.

 

 

Yours faithfully

 

Jimjams

[sequenci]

That looks pretty decent to me

[citizenB]

Hi, I have written this letter, any advice welcome before I send it out

 

 

Dear Sir or Madam,

 

I am in receipt of your letter dated 12/09/11 providing me with my CCA for Dell Financial (CIT).

 

I can confirm that I am not in a position to repay in full, the money you claim I owe.

 

However, I can raise the sum of £xxx.xx ( which amounts to 50% of amount borrowed) and I am offering this as an ex−gratia payment in full and final settlement of the account.

 

This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any further action to enforce or pursue this debt in any way whatsoever and that I will be released from any further liability.

 

This offer also requires you to confirm in writing that any adverse entries are removed from my Credit reference and files and that no further entries are made.

 

Please take into consideration that the total amount you are requesting £xxx.xx (amount borrowed including interest and PPI) includes interest based at 29.9% which within also includes interest on PPI set over the full financial period, as the PPI was cancelled - clearly stated in the contract then this would no longer be applicable.

 

If not accepted then I will be making a reclaim for all the charges, PPI and any associated interest added to the account, plus 8% statutory interest.

 

Payment can be made within 2 weeks of receiving your written agreement of this offer and method of payment.

 

I look forward to receiving your reply.

 

 

Yours faithfully

 

Jimjams

 

I have tidied it up a bit for you and made it clearer as to what you want and dont want.

 

You might want to give them a time in which to respond to you at the end of the letter.. something like.. "this offer remains open for 14 days".

 

HTH

[chattanooga]

I don't want to sidetrack this thread, but there is one line in that f&f template that has always bugged me...

 

neither you nor any associate company will take any further action to enforce or pursue this debt in any way whatsoever and that I will be released from any further liability

 

It strikes me that it leaves the way wide open for any remainder balance to be sold to some unconnected DCA and the original DCA to simply claim they have "no association" with the buyer.

 

Maybe I'm just being too paranoid.

[BRIGADIER2JCS]

When making f&f offers I always use

that phrase + this offer is made on the

explicit understanding that any remaining

balance WILL NOT BE SOLD OR ASSIGNED

TO ANY THIRD PARTY NOW OR IN THE FUTURE.

[jimjams]

thank you for taking the time to do that Citizen, very helpful! I shall take into consideration of the other comments and make amendments.

 

Again, thanks to all for your input. I swear this place is a saving grace for me.

[lenny100]

i just got a simler letter from red, they must of bought a pile of doggy acount from dell mine is from 2005/6 but no default is showing on my credit report and nothing from dell saying they have moved/sold the account to red, fight starting

[citizenB]

jimjams.. I would agree with both Brig and chattanooga.. add in a bit about not selling/assigning to a 3rd Party.. it has been known.. !! So the following paragraph should be extended to read..

 

 

This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any further action to enforce or pursue this debt in any way whatsoever and that I will be released from any further liability. I will also expect your assurance that you will neither pass on or assign to any other 3rd party.

[jimjams]

thanks, Citizen. Yep i have updated the letter to reflect that, will be posted recorded delivery tomorrow!

 

Lenny, I also had no letters from Dell saying they would pass it and also no defaults. Just says satisfied on my credit file with no late payments or anything. I agree, must have purchased it like you say, none the less, I do owe the money.