Credit Card & Loan Balance's Wipped Clean !!!

Neillgb

philpym wrote: »

Why are you so bothered about people getting help and writting of debts do you work for these banks this is a forum and started from a simple question to help people LEGALLY write of these debts if you don't agree then just get on with your own life and stop boring me and others i personally have debts which i work hard to pay of and i am very happy to see other hard working people clear their debts, you are obviously secretly interested yourself or you wouldn't have looked at this forum

I'm bothered because, in the unlikely event that this debt wipe worked, I along with other people that 'work hard to pay' their debts would pick up the tab in higher interest rate charges/fees.

That is assuming the banks didn't remove my credit facilities altogether in case I wiped them.

TheExpert

The reason so many of us are bothered is because due to some people "legally writing their debt off", the rest of us have to pay for their debt.

For the bank it is a zero-sum game. If you don't understand this, then here is a guide for dummies:

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A bank has 10 customers. All customers pay 10% interest on their balances of £5000 each and the bank breaks even after their costs, etc.

Then ONE customer decides that paying back what they borrowed is wrong and it must be illegal for somebody to ask for their money back after they gave it you in time of need and you agreed to all terms and conditions. You go away and sue the bank with a team of dedicated scammers, who would kill a grandma for the fiver in her pocket, aka. "lawyers from the firm that wipes your debt".

That means the bank is suddenly £5000 short. Let's say this bank is REALLY good and can afford to take a year to get this cashflow back (most high-street banks have 2-week view of this).

That means that the other 9 people have to make up £5000 over a year between them. Therefore all of those 9 people now have interest rates of 21.12% in order to bring that money back.

If leaches like a number of people on here are didn't exist, then the rest of the people with brains and morals wouldn't have to pay insane fees/interest for products they use.

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I get amazed when people say "I kept spending til I reached 8k and now I can't afford it". The question is why did you get the card and spend on it in the first place if you can't afford to pay it back?

The ONLY reason that banks raised their interest rates in certain situations is because they realise that the customer is very likely to run away with the money and are trying to regain at least some of that in the few months they have before that happens. In the case of one of the above posters, clearly the bank's guess was correct.

NickX

TheExpert wrote: »

That means the bank is suddenly £5000 short.

No, if the bank has sold the debt on to a DCA then its absoutely no difference whatsoever to the bank whether the debter repays the debt or not.

skintandscared_2

NickX wrote: »

No, if the bank has sold the debt on to a DCA then its absoutely no difference whatsoever to the bank whether the debter repays the debt or not.

But the bank doesn't sell the debt on for 100% value NickX. It will sell it for a lot less, which is why DCA's are often willing to accept F&F settlements as low as 40% of the debt, because they STILL make a profit even then.

NickX

skintandscared wrote: »

But the bank doesn't sell the debt on for 100% value NickX. It will sell it for a lot less, which is why DCA's are often willing to accept F&F settlements as low as 40% of the debt, because they STILL make a profit even then.

Absolutely, but my point is that once a debt is in the hands of a DCA, it makes no difference whatsoever to the bank if you decide to get out of repaying by challenging your CCA. The bank already have their money at this point. Only the DCA is set to lose out.

I am just pointing out that the situation is more complex than the example laid out.

Personally I don't think the banks are worried in anyway about this, they have lost Billions in on the world exchanges in recent months, a few old debtors challenging their CCA's won't make a shred of difference to their financial standing.

makum101

Im not trying to "not pay my debt off" I would have been happy never to spend on it again and slowly pay it off. However now they have realised this and raised my interest rate to a stupidly high amount so it would take me over 50 years to clear at the min rate and they would receive more than 8 times what I borrowed, in the hope I will default so they can sell it to a DCA and get a final cash injection.

However If I request a true copy of my CCA and they fail to produce, or it arrives and is unenforceable I can place the account in dispute. They can not then sell it. They will sell of course but I then tell the Pond Life DCA they have bought a lemon and ask them for a CCA and they give me back to the Credit Card Co.

After some time the CC Co will eventually realise neither of us is getting anywhere fast and offer a cash sum settlement. Usually about the same as what they sell to pond life for. Or i can negotiate a settlement with lower interest which would be more fair.

While the account is in dispute i can legally refuse payments until it is resolved. I will do this - not because i am greedy - but because if I continue to pay they will not negotiate and assume the dispute is resolved. Their rules not mine.

As more and more credit companies get desperate, they will do anything to close accounts with high balances / min payments and get HARD CASH in. So this 'bank scam' will become big news over the next 18 months. Its already been mentioned in the last PM questions.

The banks must be stopped hammering customers just to get a cash injection. The CCA is a strong wepon of preotection against the above not just a tool of greed.

uktyler

makum101 wrote: »

Im not trying to "not pay my debt off" I would have been happy never to spend on it again and slowly pay it off. However now they have realised this and raised my interest rate to a stupidly high amount so it would take me over 50 years to clear at the min rate and they would receive more than 8 times what I borrowed, in the hope I will default so they can sell it to a DCA and get a final cash injection.

However If I request a true copy of my CCA and they fail to produce, or it arrives and is unenforceable I can place the account in dispute. They can not then sell it. They will sell of course but I then tell the Pond Life DCA they have bought a lemon and ask them for a CCA and they give me back to the Credit Card Co.

After some time the CC Co will eventually realise neither of us is getting anywhere fast and offer a cash sum settlement. Usually about the same as what they sell to pond life for. Or i can negotiate a settlement with lower interest which would be more fair.

While the account is in dispute i can legally refuse payments until it is resolved. I will do this - not because i am greedy - but because if I continue to pay they will not negotiate and assume the dispute is resolved. Their rules not mine.

As more and more credit companies get desperate, they will do anything to close accounts with high balances / min payments and get HARD CASH in. So this 'bank scam' will become big news over the next 18 months. Its already been mentioned in the last PM questions.

The banks must be stopped hammering customers just to get a cash injection. The CCA is a strong wepon of preotection against the above not just a tool of greed.

If you don't mind paying back what you borrowed then contact the credit card company, tell them you are having difficulties and ask them for a repayment plan. Many companies will offer reduced interest rates, especially if the card is returned to them.

You can afford to pay to pay the minimum now, carry on paying that amount and not the new minimum the credit card company send you each month, that will take a bit chunk out of the 50 year repayment, and any extra you pay off will come directly off the outstanding amount.

Neillgb

makum101 wrote: »

Im not trying to "not pay my debt off" I would have been happy never to spend on it again and slowly pay it off. However now they have realised this and raised my interest rate to a stupidly high amount so it would take me over 50 years to clear at the min rate and they would receive more than 8 times what I borrowed, in the hope I will default so they can sell it to a DCA and get a final cash injection.

However If I request a true copy of my CCA and they fail to produce, or it arrives and is unenforceable I can place the account in dispute. They can not then sell it. They will sell of course but I then tell the Pond Life DCA they have bought a lemon and ask them for a CCA and they give me back to the Credit Card Co.

After some time the CC Co will eventually realise neither of us is getting anywhere fast and offer a cash sum settlement. Usually about the same as what they sell to pond life for. Or i can negotiate a settlement with lower interest which would be more fair.

While the account is in dispute i can legally refuse payments until it is resolved. I will do this - not because i am greedy - but because if I continue to pay they will not negotiate and assume the dispute is resolved. Their rules not mine.

As more and more credit companies get desperate, they will do anything to close accounts with high balances / min payments and get HARD CASH in. So this 'bank scam' will become big news over the next 18 months. Its already been mentioned in the last PM questions.

The banks must be stopped hammering customers just to get a cash injection. The CCA is a strong wepon of preotection against the above not just a tool of greed.

Have you considered contacting the CC and asking them nicely if it would be possible to reduce the interest rate??

Virgin MBNA cards put up their interest rates to 30% ish but , if asked nicely, they will reduce them.

Check out the CC threads relating to Virgin

~Brock~

NickX wrote: »

Absolutely, but my point is that once a debt is in the hands of a DCA, it makes no difference whatsoever to the bank if you decide to get out of repaying by challenging your CCA. The bank already have their money at this point. Only the DCA is set to lose out.

If this is the case then why aren't the scamming companies advertising for only debts with DCA's?

ALIBOBSY

The dca isue isn't as straight forward as that. Sometime the debt is still owned by the OC but pursued by the dca on their behalf, sometimes the whole debt is sold on in full (fully assigned to the dca), sometimes their are even "Part" assigned.

ali x

The CCA request is a good way in any circumstance to give yourself "an ace" to use if you need it. This is not a way of writing off debt as some people (and these companies) make out. I seeit more as a bargaining tool to negotiate settlements and as a back up to stop them taking court action against you. I have seen cases where people did get it written off but this involved them taking it to court and some of these cases have been lost in court. It will depend on the judges interpretation of the law and how well you (or you solicitor should you use one) present the arguements and the legal precedents (there are some). The FOS seem to be finding in the OC favour should you claim with them over this. Their position seems to be 1) we do NOT make legal judgements although we have to take account of the law (whatever that means lol) but 2) you borrowed the money so pay it back.