help for friend please RE: capital one

fluffy*giraffe*

hi, i had a conversation with a friend at work today and she siad in passing that she has a debt with capital one.

she was in areears and owed £600 in total and pays back £50 per month.

ok i said whats the prblem to which she replied '' i have been paying this off for the last 4 years and they wont stop the interest so it keeps getting bigger!!!!!!! :eek:''

this cannot be right and i was so annoyed for her! on top of this she gets up to 5 calls a week asking for more.

she has never ever missed a payment and obviously never used the card since getting into trouble.

if anyone could advise i would be most grateful as this cannot be right.

thanks x

mozzyc

Hi

Tell her she needs to get onto this site and start reading up. There's template letters she can send requesting for the interest to be stopped. That would be the best place to start. As well as posting a SOA so that everyone can understand her financial situation better, thereby giving the best advice for her situation.

fluffy*giraffe*

thanks for the reply i will point her in this direction.

i think the interest is the main thing so she can actualy pay the debt

RAS

hi

There is a piece of paper called a Consumer Credit Agreement. If this was signed before April 2007 (as your friends plainly was) it has to comply with certain legal requirements, that were reduced after 2007.

Cap1 are notorious on here for not having CCas that comply with the law.

Your friend needs to send them a CCA request, or even better a Subject Access Request.

if either the CCA or default letter are faulty, she can stop paying them and they cannot successfully take court action. they may try but she would be able to successfully defend any action and report them to the OFT.

xgingerx

Hi, whats her apr ? I have a 600 limit and my interest is approx £8 a month, so my min payment is £17 / month so dont understand how the debt can be getting bigger if she is paying £50 a month off, which is quite a good amount on a debt of only £600 ?


£50 / month x 48 months is £2400 - doesnt add up, cap 1 dont have apr's this high, not even vanquis do.

Let us know the apr etc and will check this for you. try below....

http://www.bankrate.com/calculators/credit-cards/credit-card-payoff-calculator.aspx

On above at apr of 25% it would take 14 months to pay off.

DarkConvict

Information on CCAs - http://forums.moneysavingexpert.com/showthread.html?t=2305463

1 High Street,
Newtown,
Kent
R21 4RH
March 1, 2010

The Loan Company
Company House,
Church Street,
Newtown,
Kent,
R1 7HG

Dear Sir/Madam

Re:- Account/Reference Number 4563210025897412

We are writing to inform you that we are seeking advice and assistance regarding our current financial
difficulties.

To this end, we would appreciate if you could hold any action on the above account for a period of at least 28
days.

Also, during this period, could you please freeze interest and/or any other charges accruing on the above
account.

We look forward to hearing from you as soon as possible.

Yours faithfully


Mr A N Other

1 High Street,
Newtown,
Kent
R21 4RH
March 1, 2010

The Loan Company
Company House,
Church Street,
Newtown,
Kent,
R1 7HG

Dear Sir/Madam

Account No: 4563210025897412

Thank you for your letter of DD-MM-YYYY concerning the above account. We are sorry that you feel unable
to suspend interest charges on the above account. The majority of our other creditors have agreed to the offer
of payment and agreed to suspend any interest charges still accruing. They have accepted that to continue to
charge interest would not assist us in our present financial difficulties, and can only serve to increase our total
debt.

As you are aware, we have already paid considerable sums in interest to our account. If interest charges
continue, the monthly instalments we are paying will not even cover that interest. Also, the cooperation of our
other creditors who have agreed to freeze interest already would be put at risk.
We would therefore be grateful if you would reconsider your decision not to freeze the interest. This would
mean that the monthly payments we make would actually reduce the balance outstanding to your company.

We look forward to hearing from you as soon as possible.

Yours faithfully


Mr A N Other

fluffy*giraffe*

thank you so much for all the info

this is what i thought xgingerx, how can she be paying for so long and not pay it off!!?

i will get more info off her tomorrow as something is not right somewhere.

thanks also for the templates i will print them off to show her.