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If anyone can help with the following it would be most welcome

- I have a deadline for this of the 30th September 2014.

I will keep it as brief as possible....

 

I have had two credit cards (HSBC and MBNA) for ~ 7 years.

 

 

During this time I kept up with monthly repayments of ~ £50 a month.

 

 

18 months ago I entered a bout of ill-health which culminated in me having to resign from my job.

At this stage both cards were at ~ £2000 each.

I went on to benefits which gave me enough to live on but not enough to keep up with the card payments.

 

 

I informed the providers and they both transferred my accounts to the specialist teams (due to ill health).

After 7 months they both informed me that the accounts would soon default.

 

 

I was informed by one of them that I could make a partial settlement for some of the balance.

I researched partial settlements and got the impression that they were a bad idea

- that the remainder of the debt was often sold on leading to pursuit from a third party,

and that you needed it in writing that it was a "full and final settlement".

 

 

I made offers of £400 for F&F settlements using a letter template from a debt advice website

(my Dad and sister agreed to help me out as much as they could financially

because they didn't want DCA's knocking on my door whilst I was suffering with ill-health).

 

 

The offers were accepted, but both letters state they will be a partial settlement (not F&F).

I have rung both companies numerous times requesting it be F&F

and they always say that is not possible because the full amount isn't being paid.

 

Today I rang Stepchange,

the Financial Ombudsman,

the Financial Conduct Authority and

the Money Advice Service and

 

 

read the letters out to them.

 

 

None could give me much advice except for the FCA who said whilst listening they were looking for the words "cancelled" and "zero balance".

 

 

I rang HSBC / MBNA asking if I could have letters with those words in

but they said they only send out standard letter templates, not tailored letters.

The FCA also said to ask what happens to the remaining debt.

 

 

HSBC said it goes to an internal bad debt department where it sits (for how long??) but that it is no longer associated with your name.

 

 

MBNA said that it is simply "written off" but didn't say what happens to it.

 

 

I don't understand; if the debt is written off, why can't I have it in writing that there will be a "zero balance".

 

 

If the balance isn't zero then doesn't the debt still exist?

 

Here I will give two excerpts from the two letters, the only letters they are willing to send out:

 

HSBC: "Providing funds are received by the above date, your account will be closed

and you will be released from all liability in respect of this account preventing further action being taken."

 

MBNA: "After receipt of the required payment, we'll close your account and register a partial settlement with the credit reference agencies".

 

I have also managed to get the following email from MBNA:

 

"What happens when you proceed with a partial settlement?

We will:

· Register a partial settlement with the credit reference agencies for up to six years,

which may affect your ability to obtain credit in the future.

· MBNA as well as any other third party will take no further action to recover the remaining balance.

· Close your account."

 

To me,

it sounds as though the debt really will be written off in both cases,

and that there is no chance of me being chased by either company or by a third party.

 

 

However numerous forum discussions from around the web state that partial settlements are a bad idea,

and you don't know whether you will be pursued further down the line.

 

 

I don't understand why they are so cagey about saying the debt is written off and that there is a zero balance.

 

 

According to HSBC, the remaining debt still exists but stays internally in the "bad debt" department.

HSBC have said categorically on the phone that they rarely sell on such debts

- the operative gave me his name, staff number, and call time / date,

and said if there was any issue in the future to ask for a recording of the call.

 

Can anyone provide a final answer to me as to whether I should go through with these partial settlements?

 

 

I want to settle these debts once and for all,

but at the same time don't want to be taken for a mug

- if they end up chasing the rest,

what is the point in paying the £400 in the first place?

 

 

I fully accept that my credit score will be affected - I know that is unavoidable.

 

 

However my concern is that the debt still exists, that there is still an outstanding balance

- both companies have stated I can call up any time in the next six years and pay the remainder,

and restore my credit file accordingly.

 

 

Surely that means the debt still exists?

 

 

I am worried that they will somehow find a way of recovering the remainder of the debt.

 

Apologies for the long post - any advice is welcome.

 

Thanks,

 

Charles :|

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HI

 

Seems like you need some advice here.

Create a thread for each credit card.

 

Secondly do you have any charges applied to either card liek overlimit fees or late payment?

 

Thirdly do any of them have PPI?

 

 

Accepting ANY offer that is NOT FULL AND FINAL can result in the remaining debt BEING SOLD to a dca

 

No more phonecalls.

 

Everythign in writing

PLEASE HELP US TO KEEP THIS SITE RUNNING

EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 

 

 

 

The SabreSheep, All information is offered on good faith and based on mine and others experiences. I am not a qualified legal professional and you should always seek legal advice if you are unsure of your position.

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HI

 

Seems like you need some advice here.

Create a thread for each credit card.

 

Secondly do you have any charges applied to either card liek overlimit fees or late payment?

 

Thirdly do any of them have PPI?

 

 

Accepting ANY offer that is NOT FULL AND FINAL can result in the remaining debt BEING SOLD to a dca

 

No more phonecalls.

 

Everythign in writing

 

Thankyou for your reply. I will do as you suggest and create a thread for each card.

 

A couple of questions - how do I find out i) whether I have PPI on either card, and ii) whether there are any charges?

 

The thing is, I just don't understand how they can say that it will not be chased up by a third party, and then sell it on.... surely if I have it in a letter-headed email that I will not be chased up by a third party then they would be in trouble if they did so. It is so infuriating!!

 

Also, how do I get them to write letters that aren't standard templates. Whenever I ring (and I have called numerous times) they say they can't send tailored letters. Is it a case of asking to speak directly with a manager?

 

Any advice welcome - if I don't pay the amount by the 30th of September I'm not sure what will happen....

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you need to SAR each creditor.

 

 

I can ASSURe you both of those WILL sell the debt on.

 

 

if they are offering a short settlement.

they 9/10 there is MORE to be had by reclaiming.

 

 

as for the bowlarks about it making your credit file better...

 

 

regardless to what you do

 

 

the default is there fore 6yrs from its date

and will kill your credit file.

regardless to if you pay anything or not

 

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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you need to SAR each creditor.

 

 

I can ASSURe you both of those WILL sell the debt on.

 

 

if they are offering a short settlement.

they 9/10 there is MORE to be had by reclaiming.

 

 

as for the bowlarks about it making your credit file better...

 

 

regardless to what you do

 

 

the default is there fore 6yrs from its date

and will kill your credit file.

regardless to if you pay anything or not

 

 

dx

 

Questions:

 

1) What is the purpose of SAR? How will it help the situation? The letter template on the link you sent states that there is a 40-day time frame - I'm supposed to pay the £400 next week or the offer ends. How to get round that?

 

2) What do you mean by reclaiming?

 

3) How can they sell the debt on if they have said in writing that they won't? Wouldn't that get them in to trouble?

 

I'm not so concerned about the credit score - I may have to accept that is going to be affected.

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1 you need all the statements, FORGET any silly deadlines you are being had over - fleeced!

, reclaiming will wipe far MORE than £400 and cost you NOTHING.

 

 

2. PENALTY FEES PPI etc etc

 

 

3. no it wont, they do it all the time

 

 

your credit score has been on a clock since you failed to pay?

 

 

what are the defaulted dates please.

 

 

I also suggest you read the links below

 

 

and as many threads as you can..

 

 

you are being HAD.

 

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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1 you need all the statements, FORGET any silly deadlines you are being had over - fleeced!

, reclaiming will wipe far MORE than £400 and cost you NOTHING.

 

 

2. PENALTY FEES PPI etc etc

 

 

3. no it wont, they do it all the time

 

 

your credit score has been on a clock since you failed to pay?

 

 

what are the defaulted dates please.

 

 

I also suggest you read the links below

 

 

and as many threads as you can..

 

 

you are being HAD.

 

 

dx

 

Can you tell me what SAR's will achieve? What do I do once I have got them?

 

I will look into PPI and reclaiming other charges.

 

I think the default dates are any day now - they said it would be 7 months from the date I stopped paying the monthly amount, so that will be quite soon, possibly only a few days.

 

Have spoken to National Debtline and they seem to think the settlements I have sound robust and reliable.

 

Don't know what to do?

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an sar will get you all the statements.

 

 

you NEED to get all the info on any debt you are thinking

of settling FIRST.

 

 

there is no rush to settle.

 

 

once your file has been defaulted

its there for 6yrs no matter what you do.

 

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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you also need to start reading around like thread here

 

 

the more you read the stronger we become.

 

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Will do as you suggest and read read.

 

As far as I know I haven't defaulted yet

- therefore there is the temptation to go through with these settlements before the defaults take place.

Do you think it has defaulted already, but that they simply haven't told me?

 

I'm naturally dubious about anything the banks / lenders say - even the FO / FCA / debt charities

don't seem to understand what the banks can and can't do due to the ambiguity of the terminology used.

 

 

National Debtline have seen the letters and say go ahead and pay - but I've read elsewhere that partial settlements are a con.

 

How long roughly would it take to claim back PPI?

 

 

I think I have / had it on one of the cards....

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have you checked your credit file?

 

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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noddle below is free for life

 

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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noddle below is free for life

 

 

dx

 

you can request a one time report from the other two.

 

its called a statutory report and costs £2

PLEASE HELP US TO KEEP THIS SITE RUNNING

EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 

 

 

 

The SabreSheep, All information is offered on good faith and based on mine and others experiences. I am not a qualified legal professional and you should always seek legal advice if you are unsure of your position.

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noddle below is free for life

 

 

dx

 

I checked my credit score on both noddle and experian (experian one is arriving in a couple of days).

 

 

On Noddle it states I have a credit score of 1 / 5.... great.

 

 

This is because my career development loan with barclays defaulted back in 2010.

 

 

That is very annoying because I have been paying that up until the present day.

 

 

The repayments were meant to be £160 a month.

I paid that whilst I was working but when I went back to college (in 2010)

I came to an agreement with them where I could pay £80 a month instead

- I now pay £10 a month since becoming ill and they accepted that.

 

 

I didn't realise this would lead to a default.

 

 

It states that the balance is ~ £2,400 which is what I thought it was

- but then it says the default balance is

~ £3,500.

 

 

Is the balance going up because it has defaulted?

they adding extra charges?

 

Regarding the two credit cards, they both have exactly the same status.

They are said to be "Ok" up until March 2014.

Then April through June 2014 they are said to be in "early arrears",

then July - now are in "sustained arrears".

Therefore they haven't yet filed a default.

 

That suggests I still have time to settle these before they default at the end of this month

(after 7 months of not paying, which is what they said would happen.

 

Any advice?

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so your file will be 1/5 till the existing defaults drop off.

 

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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