First Direct Consolidated Debt - 1st Credit collecting

[Red76]

Hello

 

In 2005 I took out a credit card and current account overdraft with First Direct. After getting into difficulty and missing payments for a while, First Direct combined the two accounts and issued a default in 2012. Last year they assigned the combined account to 1st Credit. Neither First Direct nor 1st Credit informed me that the accounts were combined/consolidated - I only know this from looking at my credit report.

 

1st Direct have recently started sending weekly letters asking for repayment - starting with a 20% discount 'offer'. Last week, I sent the CCA request with £1 payment. Very quickly, a couple of days later, they responded and returned my £1 postal order saying that the account was a current account and therefore not covered by CCA until 2011 - again not mentioning the fact that two accounts had in fact been consolidated. They also said in the letter that they have requested copy statements from First Direct and my account is on hold until they are able to send them to me. I received another collection letter today but this was dated the day before the letter responding to my CCA request.

 

I would be grateful for any advice on next steps once 1st Credit resume collection letters, which they surely will. Should First Direct have combined the two accounts in the manner they did and should it be covered by the CCA as the overall total includes a proportion of credit card debt (in fact the majority of the total)?

 

Thanks

[Bazooka Boo]

Firstly the amalgamation of two entirely separate accounts, each with their own interest rates and T&C's is a no no, and I

will never understand why they still insist on doing this, but I have an inkling! How much is owing on each separate account?

 

What account number did you use to request the CCA? The one 1st indirect are using on their threatogrammes?

 

As normal, debt buyers are never given anymore detail other than, fleece this address for us and we'll pay you a percentage.

[fkofilee]

I also have an inkling and also its already happened to you...

 

THE CCA REQUEST.... It was returned and amalgamated into a Current Account.

 

Cheeky Sods... I would complain to 1st direct, to get 1st credit off your case.

[Red76]

Thanks both.

 

The total debt is c.£1100 - on Experian this is showing as a current account default by 1st credit (dated 2012, before it was assigned to them). Then there is a separate entry for the credit card under First Direct, marked satisfied for c.£750, a few days before the date of the default above. The current account was around £400 overdrawn. There is no separate entry for the current account from First Direct.

 

For the CCA request, I used the 1st credit reference number.

 

Should I resubmit the CCA request stating that I know the alleged debt is mostly made up of a credit card?

 

Cheers

[Red76]

In addition to the above, I meant to add that, on Equifax, it was showing when I checked a while ago as a 'consolidated debt' by First Direct for the total amount with a default date a few days apart from the 1st Credit one on experian. I would need to get an updated equifax report to check if that has since changed to 1st Credit.

 

Thanks again.

[Bazooka Boo]

The limit for BR is currently £750, hence why they combine two debts in order to take you over this threshold, not to worry though, no DJ in the land would ignore this obvious and blatant action.

 

I would ignore 1st crudit for the time being, unless they are being particularity harassing and warrant beating off with a stern warning letter.

 

Hammer First Directs complaints procedure, and remind them of their responsibility to be recording and reporting on your credit files accurately or you WILL seek damages from them for defamation.

 

So did either of the two accounts amount to + of £750?

Edited March 30, 2015 by Bazooka Boo
BR=Bankruptcy

[Red76]

Yes, the cc was over 750 just about - by a few quid.

 

Would a SAR to First Direct be recommended so that I have full evidence or are the CRA records sufficient?

Thanks

[Bazooka Boo]

Yes, you could well do, especially if there are any fees/charges/PPI added on that account which you can reclaim.

I'm guessing you don't have sight of all the statements for the life of the card?

 

If not a SAR will be the right course of action, it might be £10 well spent, especially if you can bring the total balance below £750..

[Red76]

OK - will send SAR. I know there is definitely no PPI but there probably are some charges. Can you tell me what the significance of the the £750 threshold is?

 

Thanks

[Bazooka Boo]

Yes sorry, currently anything over £750, and they can threaten Bankruptcy (BR), however I believe that is all due to change later

this year to £5,000.

 

Hence why some outfits like to merge two accounts together to get them over this figure, in the vain hope that the debtor

will either not notice or will be completely unaware of their rights, so they (DCA) can threaten BR then advise their client

that they should file for BR.

 

So anything you can do to get the figure below this, the better.

 

Them merging two separate accounts won't wash, the threshold has to be met by one account and one account alone.

[Red76]

An update to this - 1st Credit responded to my CCA request by sending me copies of my First Direct current account statements from opening until the account was closed in 2012. The last page of the statement shows my credit card balance being added to the overdraft balance to make the combined total - there is no explanation of this transaction.

 

1st Credit have asked me to contact them within 14 days to discuss repayment. Obviously they haven't complied with the CCA request and nor have they referred at all to the fact that the 2 accounts were combined.

 

What do you think my next steps should be?

 

Thanks

[Bazooka Boo]

There is nothing for you to do IMO, their time limits can be ignored, can you scan and post up what they did send you, suitably redacted of course.?

 

Ignore them until such time they comply with your CCA request.