£3400 interest charged on an old debt - advice please

looby_lou_4

Hi eveyone - this is my first post and I am looking for some advice please.

I was in serious financial trouble many years ago and like many of you on here I am trying to sort this out.

I have been paying Thames Credit £25.00 pcm for about 2 years now and I have rung them on many occassions to establish what this is for! And they haven't told me.

So, 2 weeks ago I cancelled the Direct debit and wrote to them explaining that I had cancelled it as they hadn't told me what I wanted to know. So I outline in the letter that I would like to know the following:

1. The originator of the debt
2. How much the original debt was
3. The outstanding amount.

Once this had been confirmed, I would be more than happy to re-start the payments.

I would like to point out that in all the months I have been paying the £25.00, not once have I had a statement etc.

Anyway, I have come home today to a letter saying:

1. the debt is for classic account credit card (doesn't say who with though!!)
2. Original bal £2052.98
3. Interest added £3400.25. What?! How??
4. Paid to date £1400
5. Current balance £4053.23

To say I am stunned is an understatement

How on earth can they justify adding that amount of interest. It completely defeats the object of me paying £25.00 pcm. surely??

I would really appreciate some advice on this.

Thank you in advance

gpkwells

The First thing you need to do is write again and ask for clarification of who the card account was with.

You also need to find out how long thames credit have owned the debt, they will have bought it from the originator.

Once you know who the debt originated with you can speak to them about the excessive interest.

Some one with more knowledge will come along soon and give advice on how to challenge this huge interest bill. If it contains charges you can probably get those knocked off as C/card company's have now been told their charges were too haigh and have had to reduce them.

I would def fight this all the way! Scandalous.

Hope this is some help.

looby_lou_4

Thanks for the reply and the advice about challenging the interest with the originator of the debt

stapeley

You need to send off for a copy of any Consumer Credit Agreement and and a notice of assignment . Theres is a template letter available . No CCA , NO ENFORCEABLE DEBT .

looby_lou_4

Hi Stapley - I have tried to search the site the the template letter you mention but I cannot find it?

I understand your advice about asking for the original CCA I'm not sure what you mean by no CCA, NO ENFORCEABLE DEBT?

I am not disputing the origibal debt - as I know I had many debts but I just don't know which one this is!...but I want to dispute the interest.

Thanks again

apologies but I am quite naive when it comes to this stuff!

GeorgeUK

Lou - right now you don't even know if you have been paying off someone elses debt. The CCA should have all the details of who the original creditor was, the credit limit, interest rate etc. You can ask for a statement of the account at the same time. If however they can't produce the CCA, you still don't know if this was your debt or not.

You can reclaim bank charges seperately but i would do as stapeley suggests and request a copy of the CCA.

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looby_lou_4

GeorgeUK wrote: »

Lou - right now you don't even know if you have been paying off someone elses debt.

I had not even considered that!!!

This forum has definately opened my eyes!!!!!!

and thank you for the links