Aktiv Kapital Question

[Lay]

I have a letter from Aktiv telling me that as they cannot produce the documentation for a debt they purchased from Barclay card, that it is unenforceable.

They have also said that their policy in thiese circumstances is to cease collections on this account.

 

However they also say that as this is not yet in DEFAULT if I do not pay they will issue default procedures.

 

My question...can they do this?

Also....If they issue a default to credit ref agencies will my bank accounts be affected in any way?

 

I understand the 6 year rule and the effect on obtaining credit...this does not worry me....but any problems with my bank account as a result would.

 

Thank you.

[unclebulgaria67]

Yes they can if they have legally bought or been assigned the debt.

 

This was raised in McGuffick V RBS, where I understand that it was ruled that credit records can be noted.

[Halibutt]

Hi Lay, you ask about it affecting your bank accounts. In what way?

 

If you've already got an overdraft facility, your bank is unlikely to withdraw that due to a default on your CRF. However, if you want to get an overdraft facility or increase an existing one, they may take the default into consideration. They certainly would if considering a mortgage with them.

 

Similarly, if you wanted a credit card from your bank, they may decline. However, they will happily allow you a debit card to use for your account.

 

Your bank will look at your history with THEM first - is your account "in good standing" length of time with bank, how much money in charges they've been able to drain from you over time, etc. and mainly base decisions on that.

 

Hope that helps.

 

H. x

[Lay]

Thank you for that....I do have an overdraft facility and a bank debit card...just wanted to be sure this would all be OK if I get the default.

 

So you answered my question brilliantly....Thank you.

I will not want a mortgage or other form of credit anyway so thats all good.

 

I am argueing with Aktiv because the credit card debt is unenforceable...their words, and they have also said in writing that they will not make any further collections activity on the account.

It has been removed from the collections process.

 

They put the account on HOLD in April 2012 while they tried to obtain the CCA and told me in May2012 that they would not pursue payments further. So I have not paid since April following this information.

Now they are saying if I dont have a payment plan in place they will DEFAULT me as I have missed payments? THEY TOLD ME NOT TO PAY SO HOW HAVE I DEFAULTED??

I dont understand what they are up to or even if its legal??

Should I write to them saying they are harassing me?

[cashins]

Thank you for that....I do have an overdraft facility and a bank debit card...just wanted to be sure this would all be OK if I get the default.

 

So you answered my question brilliantly....Thank you.

I will not want a mortgage or other form of credit anyway so thats all good.

 

I am argueing with Aktiv because the credit card debt is unenforceable...their words, and they have also said in writing that they will not make any further collections activity on the account.

It has been removed from the collections process.

 

They put the account on HOLD in April 2012 while they tried to obtain the CCA and told me in May2012 that they would not pursue payments further. So I have not paid since April following this information.

Now they are saying if I dont have a payment plan in place they will DEFAULT me as I have missed payments? THEY TOLD ME NOT TO PAY SO HOW HAVE I DEFAULTED??

I dont understand what they are up to or even if its legal??

Should I write to them saying they are harassing me?

 

The debt doesn't die just because it's unenforceable; does mean they would struggle in a court to enforce.

 

Go back through your paperwork and you will probably find a mickey mouse default notice from Mercers, (Barclays internal collections). Although these are a joke, The ICO will decide that is the date any default should run form, not the date Aktiv would try to tell you.

 

David

[Lay]

I never did miss a payment so Barclays wouldnt have issued a default at all. I have always kept my payments up until Aktiv mailed me to say account on Hold

and they would not be taking any further action or collections.

 

Thats my point I have not defaulted.

They told me not to pay.

 

Barclays sold to aktiv when I asked for the original paperwork and it wasnt available.

[Lay]

What is ICO?

[renegadeimp]

http://www.ico.gov.uk/

[unclebulgaria67]

Surely questions have to be raised with the FSA as to whether Barclaycard could pass an account out to a DCA that was not in default. The OP only asked for a copy of their CCA and they took this as a prelude for non payment by the sounds of it. Sounds a bit dodgy if that is the case.

 

Does not sound like Barclaycard followed all the necessary steps and therefore I am not sure AK can just add a default. I think I would enquire with the FSA about this first. However, having just looked at the FSA site, it says contact the OFT and the OFT say contact CAB. Looks like the government bodies have given up on consumer advice and you have to ask CAB.

[citizenB]

I am assuming the account was already in default if it was sold to Aktiv Kapital ?

 

If so, then there is already likely to be a default marker from B/shark - All AK can do is UPDATE the default marker - the cannot change the original date of default.

[oleg]

Hi Lay, you ask about it affecting your bank accounts. In what way?

 

If you've already got an overdraft facility, your bank is unlikely to withdraw that due to a default on your CRF. However, if you want to get an overdraft facility or increase an existing one, they may take the default into consideration. They certainly would if considering a mortgage with them.

 

Similarly, if you wanted a credit card from your bank, they may decline. However, they will happily allow you a debit card to use for your account.

 

Your bank will look at your history with THEM first - is your account "in good standing" length of time with bank, how much money in charges they've been able to drain from you over time, etc. and mainly base decisions on that.

 

Hope that helps.

 

H. x

 

Santander have been known to drastically reduce overdraft limits on current accounts when defaults appear on CRA files. I've seen one cut from £900 to £100 on an account that had been maintained in an immaculate manner, so it's prudent not to assume OP would not incur any consequences as a result of the default notice.

[Lay]

The account was NOT in DEFAULT when it was sold to Aktiv.

 

I was paying a negotiated and agreed reduced monthly payment and I had asked them for the CCA which was originally GOLDFISH.

 

Barclays were unable to produce the documentation....next thing I knew they wrote to say they had passed it to Aktiv.

[Lay]

Is the account now in default if the only payments not made were....1. when the account was on HOLD.

 

2. when Aktiv said that no further collections would be made.?

[unclebulgaria67]

I would not normally advise paying a DCA, but what if you brought the agreed level of payment up to date with Aktiv. Could Aktiv actually add the default to the credit record, if the payments agreed to Barclaycard were up to date ? I am not sure that they could do this or it would certainly be in your favour, if you were going to challenge at any stage.

 

Also I think I would be writing to Barclaycards compliance manager to explain why the account was passed to AK, when no default notice had been issued.

[Lay]

I am not inclined to pay them as I have not actually missed any payments...only the 3 they said need not be paid.

 

They have moved the account to no more action to be taken and no collections to be made as paperwork is missing.

So I dont have to pay.

 

They are saying IF I pay they wont issue a default if I DONT they will.

Was really just asking if they can issue a default if my account was on HOLD for 2 payments and then placed into no more collection activity for the third?

[unclebulgaria67]

I am not inclined to pay them as I have not actually missed any payments...only the 3 they said need not be paid.

 

They have moved the account to no more action to be taken and no collections to be made as paperwork is missing.

So I dont have to pay.

 

They are saying IF I pay they wont issue a default if I DONT they will.

Was really just asking if they can issue a default if my account was on HOLD for 2 payments and then placed into no more collection activity for the third?

 

If you have any proof of BC telling you not to pay, send this to AK telling them they would be wrong to add any default where the original creditor told you not to pay.

 

A letter to AK's compliance manager on this basis ?

[BRIGADIER2JCS]

Reading this I think that if AKtive place a default they

will be open to challenge that any default in these cicumstances

is unfair, given that the timescale for placing a default (ICO Tech Guidance)

is ''timely'' usually with in 6 months of the cause of action.

 

In this case I believe that the cause of action was some considerable time

prior to Aktiv aquiring the debt.

 

I have on a few occasions used this when a DCA/debt purchaser has defaulted

after aquiring a debt and have succeeded in preventing a default being placed

and getting them removed.

[slick132]

Hi Lay,

 

I have a letter from Aktiv telling me that as they cannot produce the documentation for a debt they purchased from Barclay card, that it is unenforceable.

They have also said that their policy in thiese circumstances is to cease collections on this account.

 

However they also say that as this is not yet in DEFAULT if I do not pay they will issue default procedures.

 

My view on this is that it's down to interpretation. Can you confirm exactly what Aktiv said in their letter to you. Did they actually say NOT to pay them anymore ?

 

The way I see it so far is that you could continue to pay the reduced payments and avoid a default.

 

As has already been said, the lack of a credit agreement doesn't make the debt disappear - it only makes it difficult to enforce.

 

If you stop paying Aktiv, they won't pursue for payments but they will register a Default against you. Whether this will affect your present banking arrangements is hard to say but, if you want to keep your overdraft facility, I'd avoid the Default if possible.

 

Any bank that sees you've got a DN for a BCard debt that you've stopped paying is likely to consider reducing the o/d or withdrawing it completely without warning.

 

If you ditch the BC debt, there may well be consequences.

 

Your case is unusual in that you were maintaining the reduced payments when BC sold the debt to Aktiv. So the a/c was in arrears although not in Default.

 

[Old Cogger]

As Brig says!!!

[Lay]

Thank you.....I understand completely now.

 

Aktiv have been very confusing to deal with....I do want to keep my overdraft as I am relying on it for another 12 months.

Then when I get my pension I intend to pay it all off.

 

I will pay what they say are my 3 missing payments in this case and continue to pay the agreed token payments.as before.

Thank you for your help.

[slick132]

Noted.

 

Keep an eye on your CRA files to ensure nothing incorrect is registered against you regarding this a/c.

 

I'd check the files 14 to 30 days after you've brought the agreed payments up to date.

 

[Lay]

Thank you again for your advice.

 

Will check after 14 days,

 

Must just say what a brilliant forum!!

[slick132]

Hi Lay,

 

You're very welcome.

 

Let us know how this pans out for you.

 

[Lay]

They have agreed to a token payment monthly to avoid the default. Much less than I was paying before.

In reality it will never all be paid back at that rate.

 

One question....what happens to the debt when I die? I will have nothing in my estate to take it from.

 

A good result. Thank you.

[BRIGADIER2JCS]

No estate so no money to pay they get nothing.

Pleased for you!!!