Managing own £24K debts after 1 year on a fee paying DMP

[Mezzle]

I've had bad debt, which I'm now managing. 

Looking at my credit file, I see examples where a debt has been sold.

For example, a Lloyds Loan might show as

Account with Lloyds Bank
Status: Settled/Defaulted
Balance: 0

and an entry from who they sold it to

PRA Group
Status: Defaulted
Balance: £3045

 

This would be considered as 2 defaults, rather than 1 default that's been sold, wouldn't it? (The default dates are the same),

I have 9 different defaults on my file listed in this manner. (defaulted, 0 balance, but I know I've not paid off that original debt yet, and am paying a DCA)

I'm just making sure I've identified these correctly before I go down the route of chasing the OCs to get them removed.

(I'm also thinking that removing 9 defaults from my file will make it look "nicer" (but still awful!)

 

 

[Mezzle]

The details I can see show them with different "account ending" - does this mean they're potentially showing as 2 debts?  Or is there somewhere where I can see in a report that the debts are considered the same default?

[Mezzle]

In July 2022, I entered into a DMP using a fee paying company (and yes, I know, I’m expecting dx to tell me off for doing so!)

I got frustrated with them and how they handled the annual review, so switched to handling things myself

 I’ve informed all the creditors that I’ve changed, and most of them have accepted my new (higher) offers, and the ones who haven’t just haven’t got back to me yet

 I’ve also had 2 debts that were statute barred closed off, something that the DMP company were insistent that couldn’t happen. 

rolling the payments from them being closed off and the money I’d been paying The management company, I’ve managed to clear off one account (~£400 with Klarna) and start making good payments to others  

I’ve also opened an affordability claim with Lloyds for the overdraft, given I lived in my overdraft for a good 15 years or so. We’ll see where that goes

is there anything else that I should be doing? Or any tips/ideas for getting things done quickly? Balances currently range from £400 - £6k, with the total being just under £24k. All but 3 accounts out of the 13 have been sold on to DCAs

 

Debt list:

• Marbles - £6804.99 - sold to Cabot
• Lloyds Loan #1 - £2905.28 - sold to PRA
• Barclaycard - £2549.38 - Sold to PRA
• Lloyds CC - £2387.83 - Sold to Link Financial 1
• Lloyds Overdraft - £2078.59 - Sold to Link Financial 1
• Paypal Credit - £1835.50 - Sold to Wescot
• Cashplus - £1360.99 - Sold to BW Legal
• Amazon CC (Newday) - £1205.78 - now "Pulse"
• Lloyds Loan #2 - £1215.93 - Sold to PRA
• AO (Newday) - £951.86 - Sold to Cabot
• Klarna - £561.48 - No response to letters
• Fluid - £520.35 - Sold to Wescot
• Tesco CC - £397.41

All should be defaulted.

Am I right in that I should be CCA - ing the CCs?

Having looked at my credit files online - I've spotted a few issues which I'm not sure if they need correcting, and if so, how to correct

• Cashplus with BW Legal - only shows the OC record (Satisfied, £0 balance) - nothing with new Creditor
• Amazon / Pulse - no default recorded, but online account says the Agreement is terminated
• Paypal - Doesn't show record from Wescot
• Fluid - shows as sold to cabot on file - but Wescot own this? (Cabot have confirmed this has been resold)

 

[Mezzle]

For the Fluid one, I've previously discussed with Cabot, and they've said it's been passed to Wescot.

For Paypal - it seems to be Lowell

Why stop paying the OD/what are my actions going forward with them - I presume there's something I don't know around those?

@dx100uk - that is very confusing (editing my post as a response!)

Paypal debt = PP Credit, taken out on29/01/2017, Default Nov 21

What's the reasoning behind not paying the OD? is it unenforceable automatically or something (could you point me in the right direction please?!)

[Mezzle]

Bank acount was opened roughly 20 years ago (Opened on 20 August 2003 according to Credit Report).  I've already got an affordability complaint sent off to Lloyds re: that - they've received it and am awaiting their response.

Was sent to Link when I entered DMP - Credit Report is saying October 2022 - although I didn't get a letter til late november, stating the date was 17/11/2022

 

In respect of phoning/emailing people - I've emailed some, but not phoned.  I presumed that as there's a written record of the emails, there's no issue with that?  Or have I done something wrong?  
 

[Mezzle]

I had meant to post something last night, but didn't.  My comments were going to be re: the Lloyds IRL - but I've just had an update from Lloyds.

They've agreed that the OD was unaffordable, based on 2 loans at the time in quick succession.  They're providing a refund of £2000.10 and an "apology payment" of £40, as well as backdating the default to 2019, when they should have defaulted me on my OD.  They'll be buying the debt back from LF1 and paying it towards that - it'll leave me "owing" £38 to them.

They've also agreed to open complaints and look into the loans affordability, as by the admission on this case, the only reason I was able to stay in my OD was due to those loans - so they will potentially be considered unaffordable too.

[Mezzle]

Loans were just part of the overall picture when I was getting into debt.  But yep, the loans etc contributed.  Thankfully I'm in a better place now to sort things out / pay things off / get everything back on track.

It's the hope they'll cough on those now (I made specific reference to what was said).  And the CC (that they gave me an increase whilst I was over-limit!)

Whilst you're here.

CCA request - recorded? or just Proof of Postage ?

Edited September 11, 2023 by Mezzle

[Mezzle]

I'm in the process of the first few months of managing my own debt. (see my other thread)

Going through my paperwork, I've noticed that I have one account that is showing as "Active" on my credit file, however, I have in my hand a Default notice dated 10th September 2022, and a termination letter dated 5th October 2022 (both whilst I was in DMP with my previous provider)

Equifax/Experian show this account as "4 months late" in March 2023, and then "Payment made on time" (ok) from April 2023 onwards.  Transunion shows the account as under a DMP from January 2023

Whilst this doesn't show on my file as a default, is it worth complaining *now* regarding the default not appearing, so that it'll be added/backdated to drop off my report in 2028? or is it worth waiting/hoping it doesn't appear?

Would it do more harm to make sure it's reported accurately (with a default) or leave it as is?

Edited October 2, 2023 by Mezzle

[Mezzle]

I’m still paying them directly, so it shouldn’t be sold yet

 

Just had my first reply to my CCA requests from Link Financial

Quote

Thank you for your recent letter, we can confirm we no longer require a fee for the section 77-79 request, please find enclosed your £1.00 payment

And then what seems like a standard closing of "Please ring us if you've got any questions about this letter"

I have to give them - they're good at quickly responding to me as a customer, but it seems like they're taking their sweet time to sell one of my debts back to have the Interest/Fees refunded...

 

[Mezzle]

Well, speaking of PRA - just had a letter back from them.

I sent them three letters, they replied about all three in a single letter.

3 Postal orders attached, they've put  3 accounts "on hold" meaning I won't be contacted regarding them until they've found the CCA, and sent it to me.  Information sheet enclosed which is actually a really nice summary of what they should provide, it being unenforcable until they do, etc.

It feels weird to compliment PRA - but they've been one of the better companies I've interacted with so far.  Their information sheet is pretty damned good, and when I mentioned I'd been paying token payments via DMP for 2 debts I believed to be statute barred, they wrote those off immediately, and sent me a letter stating so.

[Mezzle]

Response from Lloyds attached re: one of my complaints.

Their timings don't match what's on my credit report.

Their timeline:

• Opened March 2016 - Limit £1500
• December 2018 - £1500 -> £2250
• September 2019 - £2250 -> £2750

Experian

• Before December 2016 -????
• December 2016 - Limit £2250
• October 2019 - £2250->£2750

It seems I have 2 more years @ £2250 on my credit file than they're claiming ? 

Does this bring into doubt either the credit record, or their letter? 

Because if we go by what they say, instead of my balance being an average 39.8% with a max usage of 56.8% - I'd be sitting at an average of 59% with a max of 87% utilisation - 

It's marred by the fact there's a dip that it seems I paid it off twice - but then, I also have 2x Loans, one I seemed to get just before I paid off my balance - I think I definitely have some questions that need answering here (they've either dealt with my complaint wrong, or they've reported to the credit reference agencies wrong.  Which would be more trouble for them?)

Any advice with how I take this forward? 

I'm thinking another complaint (incorrect reporting) and pushing further to the ombudsman?

The only thing is I don't see something on their letter saying it's their final response. 

Don't. I need that (or a time limit) before the FOS ?

 

 

My favourite part is this

Quote

You also never exceeded your credit limit

However, in September 2019, my experian report shows

• Balance: £2360
• Limit: £2250

And then in October 2019:

• Balance £2462
• Limit: £2750

Now, I know I was the idiot that did in the first place.  But even I can see now that looks like irresponsible lending.

2023-09-`8 Lloyds reply to IRL complaint.pdf

[Mezzle]

It’s attached above as redacted.pdf

[Mezzle]

3 responses from Cabot (attached).  The Fluid one *does* have a plan via Wescot at the moment, but for this I went direct to Cabot (as I didn't realise before who actually owned it).

Seems they're struggling to find the documents.  I presume this is now UE till they try and produce something, and their "updates" will be to tell me that at their deadline ?

Edit: One of them is the largest of my debts.  Here's to hoping that one ends up UE

 

Cabot - for 3 qccounts unenforceable at present.pdf

[Mezzle]

Whoops. Didn't realise my name was on there!

Also,  cabot don't seem to have a way for me to cancel paying without calling them. 

It's a CPA too so I'm glad I stuck it on a "Virtual" Card, even if I do have to change the details for the other things I'm paying back (thankfully, they're all just debts, and it's only been cabot who've been a pain about changing things)

 

[Mezzle]

Monzo are the bank.  So it's just easier to cancel the temporary card and re-enter it where needed

replacement attached

Cabot - Redacted Flatten copy.pdf

Edited October 18, 2023 by Mezzle

[Mezzle]

Letter back from LF1

We write further to your request for account documentation under section 77/78 of the Consumer Credit Act 1974.  Unfortunately, the original creditor has confirmed that they are currently unable to comply with your request within the 12-day initial timeframe.

Although the account is currently unenforceable the outstanding balance remains collectable and it is acceptable for creditors to register and continue the reporting of a default.

We will contact you further upon receipt of an update from the original creditor.

 

This is the Lloyds CC that I made a complaint to Lloyds about, and they rejected.  That complaint has now been passed to the FOS -  I guess the above gives me some ammo.

Love how they're blaming the OC - when it's them who needs to provide it.

[Mezzle]

Large envelope in the post this morning from PRA re: Barclaycard.

Scanning up 1st page of letter, as 2nd is just signature, and the rest are copies of statements (Feb 2021-Mar 2022)

From what I've read - PRA mostly only ever get back statements from BC, and I'm lucky they've not tried to fake a CCA with me, and have admitted it's UE

Surprised I didn't get the other two back today.  They'd all be on the same deadline, so should've had the 12 day letter at the same time.

PRA - Barclaycard redacted.pdf

Edited October 25, 2023 by Mezzle
attach letter

[Mezzle]

Response from PRA today re: one of my CCAs for my bank loan.

They seem to have included a Loan Agreement - but not statements, and they've listed it as unenforcable.

@dx100uk - any chance you could have a look and give me your perspective on what they've responded with?  Is it likely that this would stand up if they do provide statements?

PRA - Lloyds Loan 1 copy.pdf

[Mezzle]

I did take the loan out, yes, and applied online

 I went back in my archives and it matches the original, so to me it seems as if it meets requirements. But they’ve said in the first page it’s UE, so I’m confused

 I’ll look at the edited pdf. Thought the editor I was using redacted properly, but maybe it only does if I flatten

[Mezzle]

When I started the (paid for) DMP - it was listed as part of my debts - at that point I slowed down paying Lloyds, and they sold it on fairly instantly (they sold all my accounts on)

I didn't have comms with Lloyds directly - the DMP company did that.

Going through my letters, I have NOA from Lloyds and PRA.  I have a letter from Lloyds saying they're closing the account (and need to send me a default notice) and a notice of "arrears" from PRA. I don't seem to have a DN anywhere.

Credit file says Default was recorded in October 2022.  I paid Lloyds directly until the DMP started in July 2022 - DMP paid them until October 2022, and started paying PRA in November 2022

Payments were reduced at the point of taking out the DMP - but have continued through to last month to PRA

Just looked through all the correspondence I forwarded onto the DMP company.  Lloyds sent me a notice of sum in arrears, and a "We're closing your accounts" letter - but it doesn't seem I ever actually received a DN.  For anything with them.

Edited October 28, 2023 by Mezzle

[Mezzle]

Lloyd’s sent letters to me for everything else, so surely they wouldn’t send only dn to DMP co? Also, wouldn’t that mean they didn’t serve a dn to the person in the agreement?

i don’t have any dn related to any of my Lloyds debts. 
 

The letters I received were forwarded to the dmpco as I received each one, I didn’t get any copies of letters sent to DMP co - should I sar all that?

All 4 debts were the same - though a couple had an extra “we’ve paused interest” letters before the sum in arrears

 I’ll upload it tomorrow, but the letters saying they’re closing my account state  “we’ll have to send you a default notice first before we close it “

Here's the last letter before the notice of assignment

 

Lloyds Closure Loan 2 - Redacted.pdf

[Mezzle]

I was thinking more to sar the DMP company

Letter of assignment was 25/10/2022. 

[Mezzle]

Well, Lloyds have an easy SAR online form - so I've submitted that.

 

[Mezzle]

Update:  2x Cabot U/E letters

No response from JCIA - either via them or via BW - worth dropping them a "You're non-compliant, I'm stopping paying" letter?

No response from Lowell, either directly or via Wescot - I'm actually a little surprised by this one, given Lowell are a name mentioned here a LOT.  But - same as above ?

Other than that - just waiting on one more from PRA - but as that's my other loan, I won't be surprised if it ends up U/E too

[Mezzle]

£13,382.82 worth of letters stating unenforcable

£2835.21 that I expect to still get an unenforcable response from

£3,120.45 I've had no response from.

There's still a chance that some of them can come back with something though, so we'll see  but I'm hopeful.