Help! Can "Debt Recoveries" help you to write off credit card debt?

gardeningmad

Hello All,

I have around £15,000 on an Egg credit card. I haven't touched this in a couple of years and have been paying off the debt at a reasonably low rate of about 8%. However, recently the APR increased to 18%. The minumum monthly payments have shot through the roof and are increasing every month, so I'm no longer actually paying anything off, only getting further into debt.

I already have a BarclayCard, so am not able to apply for the great low balance transfer rates they offer.

I did call Egg and asked them to reduce the APR as I am (or should be) a valued long term customer. They refused.

I have applied for another lowish rate balance transfer credit card, so this is another option.

However, I have also been in touch with a company called Debt Recoveries, and wanted to know if anyone knows anything about them. I am very, very sceptical. After initial investigation, they have informed that I have a "good chance" of success in proving the ts and cs of the Egg credit agreement are in breach of the consumer credit agreement of 1974., therefore writing the debt off. But to proceed, they want £395! I would love this debt to be written off but am not gullible enough to hand over £395 just like that.

Is this a con? Does anyone know how this sytem works?

Your help is appreciated. Thanks!

mufc689908

I didnt pay MBNA for 6 months because they hiked up my apr to over 30%and as a result of me digging my heels in wrote of 70% of the cards balance.

Im in the process of doing the same with egg who are charging me just under 27% on a card.

If you`ve missed payments your credit rating isnt looking too rosey now unfortunately, dont let the tw*ts bully you.

rog2

gardeningmad wrote: »

However, I have also been in touch with a company called Debt Recoveries, and wanted to know if anyone knows anything about them. I am very, very sceptical. After initial investigation, they have informed that I have a "good chance" of success in proving the ts and cs of the Egg credit agreement are in breach of the consumer credit agreement of 1974., therefore writing the debt off. But to proceed, they want £395! I would love this debt to be written off but am not gullible enough to hand over £395 just like that.

Is this a con? Does anyone know how this sytem works?

It is a con, gm. It 'works' on the basis that they will be able to find a 'flaw' in the original consumer credit agreement that you signed when you took out the card. Many, but not by any means all, credit agreements are not compliant with all of the requisite terms as defined in the Consumer Credit Act, 1974. If the agreement is flawed, non-compliant or even non-existant, then the agreement (debt) is 'unenforceable through the Courts'.

It is the right of any debtor to request a true copy of the original consumer credit agreement at any time - whether from the original lender or a debt collection agency who may be pursuing the debtor on behalf of the original creditor. The creditor/dca must provide a true copy of the original cca within 12 working days of receipt of the debtor's request - if unable, or unwilling to do so then that creditor/dca is in default of his obligations under the Act and, whilst in default, can not 'enforce the agreement'.

There is a Statutory Fee of £1.00 for this - a bit different than the £395.00 that 'Debt Recoveries' are asking:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=getting_a_copy_of_your_credit_agreement_and_account_details

My advice is not to touch them with a 10 foot Barge pole. But, don't take my word for it - see what the OFT and Citizen's Advice Bureau say about it:

http://news.bbc.co.uk/1/business/8086282.stm

gardeningmad

Thank you - that is a big help. Thought it was too good to be true. Will continue down the route of transferring the balance to a lower APR card.

never-in-doubt

gardeningmad wrote: »

Thank you - that is a big help. Thought it was too good to be true. Will continue down the route of transferring the balance to a lower APR card.

also to utilise unenforceability will affect your credit status for at least the next 6yrs. I bet 'debt con-recoveries' never informed you of this major piece of info did they? In essence you default your account and try to fight the legalities, as Rog2 states. You do have a good chance as Egg were one of the main players in 'getting it wrong' but then again, do you want this hanging around for the next 6yrs with little option to obtain any credit during that period? Huge gamble....

If you have good credit then i'd never suggest taking this route! :eek: