gavandcarly & HFC issues, now find i have a CCJ i knew nothing about

[kurvaface]

Do you know what his credit score actually is? If it is less than 400-450, I can't see what difference will be made. What you need to avoid though is them marking it as a partial settlement and then they or someone else comes knocking on your door for the remainder of the balance, defaulting the credit file all over again.

[gavandcarly]

ok cool.

 

Hi credit rating is definitely less than 400.

 

Do you think I may as well not pay them anything then unless they accept to remove the default?

 

Surely it is in there best interest to get the money so they will have to end up removing the default....

[kurvaface]

I think if you present it to them along these lines:

 

I'm not scared of you (ie I know the system)

I Know I've screwed up.

You want my money

I want the default removed

If you do that I'll pay X

If you don't, I'll just do the bare minimum in terms of payments.

Make them understand your primary motivation/objective is to clear up the credit file rather than parting with your hard earned otherwise you just can't be bothered with it.

 

(I say "I" but I mean your husband:-))

[gavandcarly]

ok cool so you think i should still make payments to them even if the refuse to remove the default?

[kurvaface]

The advice I see on here is always to maintain some form of payment if your objective is to keep the creditor as onboard as far as possible, even if it is only £1 per month. I would love to hear what they say if you effered them just that lol!

[gavandcarly]

hahahah, i might just do that!

[gavandcarly]

I just emailed him stating that I would of accepted his offer for full and final settlement for £558, however due to them having added the default on my husbands credit rating there is not much point as this will now be in place for 6 years, I asked him if there is anyway possible that they could remove the default and he replied with this:

 

Dear XXX

>

> Your solicitor is correct. The default will remain in place for six years

> from the date it was first registered. However it will show with a zero

> balance. HFC is unable to amend this as it is an accurate reflection of

> action that we took on your account. I have however seen credit files where

> customers have added comments to entries and some lenders look upon this

> practise favourably. A good place to start could be:

> consumer.helpservice@uk.experian.com

>

> Once again I hope this proves to be helpful.

>

> Yours sincerely

[gavandcarly]

What should I reply?

[kurvaface]

I think that is up to you.

 

I personally would negotiate them down on the final figure and get a rock solid comittment that the matter is concluded - permanently. It is true that you can add notes to your credit file yourself but I doubt there is any note you could add that would change the opinion of an automated credit score.

[gavandcarly]

Yep me too. I think I might just reply and state that if the default can not be removed then I am only willing to make minimum payments each month as paying lump sums are not going to improve my husbands credit rating due to the default that they have put in place.

[kurvaface]

I think that is a fair stance to take, although do invite them to tempt you with a better offer.

[gavandcarly]

I have replied with this:

 

If the default is unable to be removed then unfortunately I am only prepared to pay minimum payments each month, as there is no incentive of me paying lump sums when my credit rating has already been destroyed by the default you have put in place.

 

I do however invite you to offer me some sort of resolution in order to have the default removed in order for me to resolve the debt I have with your company as soon as possible.

 

If this is not possible please advise of the minimum payments that I should make each month, and please also provide me with the details of the financial ombudsman that you stated I may contact in your previous email.

 

Kind Regards

[kurvaface]

I have replied with this:

 

If the default is unable to be removed then unfortunately I am only prepared to pay minimum payments each month, as there is no incentive of me paying lump sums when my credit rating has already been destroyed by the default you have put in place.

 

I do however invite you to offer me some sort of resolution in order to have the default removed in order for me to resolve the debt I have with your company as soon as possible.

 

 

Perhaps say: I do however invite you at this point or at some point in the future to offer me a considerably better full and final settlement figure as an incentive to close this account

If this is not possible And in the mean time I am able to pay x (I wouldn't invite them to suggest a monthly payment )

please advise of the minimum payments that I should make each month, and please also provide me with the details of the financial ombudsman that you stated I may contact in your previous email.

 

Kind Regards

[gavandcarly]

lol, no worries. I liked your reply though, I should of waited damn it... well I will wait and see what they say... Thanks for all your help though!

[dx100uk]

dont believe there are no charges or ppi

its HFC they ALWAYS dump stuff on.

 

per i'd SAR them before you do ANYTHING

something smells here

 

dx

[gavandcarly]

If there is a PPI, wouldn't it be stated on the original credit agreement?

 

There is nothing on there about PPI....

 

The only charges that have been added were £147 for the account being passed to weightmans debt collection, but they have said that they will remove that. And other than that they said they charged interest for everyday that the payments were late.....

[kurvaface]

I think you should message your contact and rattle their cage a bit. perhaps say that it has just occured to you that you would likie to do a SAR just to see if there are any discrepancies on the account. If they come back at you with an improved offer you can be sure there is an issue with this account.

[gavandcarly]

This is what they wrote about the interest charged:

 

To further clarify the point about the interest calculation.

 

The interest is calculated daily on the outstanding balance and applied to the account monthly on the same day as the repayment is due.

 

The number of days in calendar month therefore have an impact on the amount of interest debited to your account.

 

You will notice that on the first page of your statement you were making payments on the "due date" but the interest fluctuated

slightly from month to month due to the different number of days between due dates..

 

If however you take the period from March 2008 through to October 2008 when you were making the contractual repayments you will see

the overall trend of the monthly interest is downwards.

For example £12.90 in March compared to £11.30 in October.

 

This is the calculation and assumption that sits behind the original schedule of 48 payments of £21.60.

 

At the point where you were no longer able to make repayments the interest continues to be added and there fore the balance increases.

 

If you look at the interest added on the 1st July 2009 for example it has increased to £12.69.

 

You are correct in observing that there is no interest added to your account after September 2009.

This is because one of the main functions of the default notice is to terminate the agreement following a breach of the original contract.

 

We therefore calculate the total amount due under the agreement in this case £673.14.

If this amount was paid i.e the breach rectified within 21 days we would be obliged to pay you a rebate and this is shown as well.

 

So at this point £568.85 would have settled your account in full.

 

At this point the original repayment schedule is overridden by the default.

HFC terminated the loan agreement on the 8th September 2009 and instructed Weightmans to recover the default balance of £673.14 p.

At this point HFC stopped adding interest to your loan as it has been terminated and from this date,

regardless of how long it takes to repay, we can only demand a maximum of £673.14 p

plus any Court costs that are awarded in HFC's favour.

 

By way of further explanation it may be helpful to look at

 

the period on your statement from March 2010 to August 2011 to gain an idea of the impact that continuing to add interest would have on the balance.

During this period you were paying £5 per month via Gregory Penningtons.

 

If we assume that the average monthly interest for this period of £12.75 the balance would have increased by £7.75 p per month i.e £140 over these eighteen months.

This would mean individuals in similar circumstances would have great difficulty in ever clearing the debt and the Courts would be overburdened with the work of updating balances.

It is therefore important that the balance is crystallised at the point of default.

 

I hope the above is helpful.

[gavandcarly]

Thanks KurvaFace,

 

I will wait for their reply tomorrow as I am guessing the guy has gone home now, and I will let him know that I want to do a SAR, and see what he says.....

 

Why do they have to be so difficult, why cant they just remove the default and let me pay off the debt???? What will they loose by removing the default?

[dx100uk]

If there is a PPI, wouldn't it be stated on the original credit agreement?

 

There is nothing on there about PPI....

 

The only charges that have been added were £147 for the account being passed to weightmans debt collection, but they have said that they will remove that. And other than that they said they charged interest for everyday that the payments were late.....

 

they cant charge a referal to DCA fee

 

so they are charging interest on late payments, but you were charged interest already on the loan

sso thats a charge too!

 

you really need to nail them and stay off that phone

SAR them.

 

dx

[gavandcarly]

Will do DX, havent been on the phone to them as we live in Dubai now. Just been communication via email.

 

Weighsmans is a solicitors I believe they said the charges were for: £55 for issuing the judgment set by the Court, £22 for entering the judgment set by the Court, £70 solicitor's costs awarded by the Court, Total - £147

 

They have however said that that they will remove the £147 if i pay one lump sum of £558.

 

I will do the SAR the only thing is there is no postal system here in Dubai so I cant post it and there is no postal lorders out here so i cant send the £10 postal order. Is there anyway of doing a SAR online?

[dx100uk]

hang on

so you have a CCJ?

 

and you are overseas?

 

why are you bothering?

 

ever coming home?

 

dx

[gavandcarly]

Nope my husband doesn't have a CCJ, they said it was a default....

 

We will probably be going back to the Uk in a couple of years...

[dx100uk]

then what is this all about?

 

Weighsmans is a solicitors I believe they said the charges were for: £55 for issuing the judgment set by the Court, £22 for entering the judgment set by the Court, £70 solicitor's costs awarded by the Court, Total - £147

 

dx

[kurvaface]

SO why the judgement fees...?

 

NoCourt case = no fees therefore by removing them = no favour done?!?