Vanquis credit card - interest on a default

[trianglehead78]

Hey guys

 

not sure if this is the right section to ask so, if wrong then apologies.

 

All I wanted to know is,

 

when a credit card account defaults,

 

are the company allowed to continue to add monthly interest past this date and if so,

does it need to be paid when making an offer of payment?

 

cheers

[citizenB]

The usual procedure would be that they would issue a Default Notice (statutory requirement) which gives you time to remedy the breach. If you don't remedy they would terminate the account and then write it off by selling on. At which point no interest would be added.

 

Some companies.. MBNA and Capone however, tend to leave the debts collecting a decent wadge of interest before selling on.

 

TBH, I am not sure if there is any legislation that prevents them from continuing to add interest.

 

Perhaps if you were to tell us a little more about the debt?

[trianglehead78]

It's for a Vanquis credit card.

 

I'll have more info when I get in from work.

 

Off the top of my head though, it defaulted in 2008 at around £340

but, continued to accrue interest for a further year.

 

From the transactions page of the CCA request I made I noted that along side the interest charges was the name Cabot(who I'm now dealing with in this matter)

[trianglehead78]

I've finally got my act together and scanned the docs in.

 

Just looking at them whilst I was doing I noticed that they've taken the £1 PO for the CCA and applied it to the account

after I expressly stated in the request letter that this was not to be taken as payment against any perceived debt owed.

 

The account defaulted on 30 May 2008 with a balance of £348 according to my credit report

but Cabot have started to add interest from 13 January 2009 totaling £103 to bring the 'owed' total to £451.50.

 

I also note that nowhere in the supplied documents it there any instance of a signature linking the account to myself. Is this needed?

[trianglehead78]

Hey guys, was just wondering if anybody had any further insight into this as this morning I've received a further request for payment off the back of them supplying the CCA info

[citizenB]

Do you have a copy of the terms and conditions that came with your vanquis card ? Does it state on there that if they terminate the account and assign it forward to another company that, that 3rd party can continue to add interest ?

 

It is wrong of them to apply the statutory fee to the account - however, if it were a case of resetting a statute barred clock, then that would be considered an unsolicited gift and would not reset the clock.

 

Do you know if there have been any penalty/default charges applied to the account - if so they can be reclaimed.

 

Were you in a payment arrangement with Vanquis before it passed to Cabot ? If not making payments at all, why did you cease ?

 

When was the account first opened.

[IdaInFife]

take it this was an online agreement?

[dx100uk]

if the account is not terminated

then whomever owns the debt is surely entitled via the T&C's to add int

unless its been terminated.

 

so who is the owner on the cra file entry

dx

[trianglehead78]

It was an online agreement yes.

 

According to the T & C they can 'transfer this agreement or any of our rights or responsibilities to any person or company who is licensed under the consumer credit act'

 

The owner according to the CRA entry is CABOT.

 

After looking at the info that they sent back it states on the first page that 'As we have now complied with your request for information, we are able to enforce the credit agreement, which you signed and entered into'

 

Looking through the info there's no signature in there at all. Does this mean that it's NOT enforceable?

[Old Cogger]

deleted

[dx100uk]

I see you have PENALTY charges and ROP

 

get reclaiming!!

 

 

what is the defaulted date from you rcra file too

 

dx

[trianglehead78]

the default date on the credit file is 30/05/08

 

As for the default charges and ROP I wouldn't have a clue where to start in getting them back

[dx100uk]

it looks to me that you never made a payment at all ?

 

if the defaulted date is 30/5/8 it should be gone off your file by 5/14

[6yrs from defaulted date debt paid or not should be removed]

 

you last payment will be poss upto 3 nmts before that.

 

so the debt is yet statute barred? you need the statements

dx

[trianglehead78]

That's right, there were no payments made on the card(it was the one thing I forgot to keep track of when I left the country).

 

If the default date on my CRA file is 30/05/08 then shouldn't the statute barred date be 30/05/14?

 

Is the PENALTY CHARGE and ROP a simple case of requesting they remove the charges?

[dx100uk]

default date and sb date are notthesame

 

sb date will be from your last payment [ or last financial transaction]

 

as for the charges/rop

 

you'll need to do some spreadsheets.

 

dx

[trianglehead78]

So, from your information then would that mean that the last transaction date is 28/09/07 leading to being statute barred 28/09/13?

 

I'm still at a loss as to what you mean by 'do some spreadsheets'

[dx100uk]

you need to fill out two copies of the same spreadsheet

 

one for penalty charges [£12 late/over/letter etc]

 

one for ROP

 

one each sheet

put THEIR int rate in cell D15

 

then input EVERY PENALTY charge/ROP amount on a new line

using the info from the statements you have

 

This second spreadsheet is a compound interest calculator and can be used both for PPI claims and Charges Reclaims on Revolving Credit Accounts such as credit cards. Compound interest is not an award that fos will give in respect of PPI claims but it can be used in PPI cases that are pursued through the courts. It is the standard sheet that is also used for charges reclaims both on credit cards and loan accounts where interest in restitution is claimed.

 

CISheet v101.xls

[trianglehead78]

Its been a while since I heard anything from cabot.

 

I recently sent them a statute barred letter.

 

they've responded stating that as the account defaulted in may 2008, it's not statute barred.

 

Can I get a bit of clarifcation dx100uk?

 

When you stated above:

default date and sb date are not the same

 

sb date will be from your last payment [ or last financial transaction]

Do you mean the last purchase on the account as last financial transaction?

[dx100uk]

cabot always say that the DN date is from when the SB date runs from.

 

if we go by your statements

YOUR last use was 28/9/2007.

 

however there is current thinking that SB is from when the creditor 'could' have issued a DN and could have thus terminated.

 

so going by that, add 3 mts, add 14 days . that's when they could of terminated...so i'd guess about mid jan 2014.

 

dx